Quicken Loans and vacation rental company Vrbo are partnering to allow prospective buyers to use rental income on primary or secondary homes to qualify for a mortgage.

Despite rental income often accounting for a large portion of an individual’s revenue stream, in the past that individual could not use that income to qualify for a mortgage or refinance if the property was a short-term rental of their primary or secondary home. Previously, only rental income on investment properties was eligible to be considered.

“Vrbo helps homeowners use one of their biggest assets as a source of income,” Quicken Loans CEO Jay Farner said in a statement. “Now, Quicken Loans can accurately review that income and consider it when calculating the debt-to-income ratio – a major data point considers when qualifying for a mortgage.”

Through the partnership, individuals can use their short-term rental income earned through Vrbo to qualify for mortgages for primary residences, vacation homes and investment properties.

Income from Vrbo – a subsidiary of HomeAway which is part of Expedia Group’s portfolio of brands – is recorded in real time, so individuals can share earnings statements directly with their Quicken Loans mortgage banker.

Rental income and mortgage payments are often intertwined. A June 2018 market report from Vrbo found that more than 50 percent of short-term rental owners utilizing the platform use income generated from their property to cover at least 75 percent of their mortgage payment.

“Homeowners who list their vacation homes on our marketplace have a unique financial opportunity to earn extra income,” Bill Furlong, vice president of HomeAway, Americas, said in a statement. “For the first time ever, homeowners can use their Vrbo rental income to be considered for a mortgage refinance, unlocking more value and financial returns on their property investments.”

Email Patrick Kearns

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Don’t miss out! Inman Connect Las Vegas starts tomorrow and you can catch all the excitement with a virtual ticket.Register Now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription