Detroit-based Quicken Loans has partnered with Vrbo®, a world leader in vacation rentals, to allow rental income earned through Vrbo to be used to qualify for a mortgage refinance. This program uses confirmed and documented rental income so homeowners can more accurately illustrate their full income stream. Mortgages for primary residences, vacation homes and investment properties are all eligible through this new program.
For the first time, Quicken Loans clients can use income generated from offering their properties for rent as vacation homes on Vrbo to qualify for a conventional mortgage to refinance their mortgage. Traditionally, rental income can only be used to qualify for a mortgage when it is earned from a home that is deemed an investment property, not short-term rentals. Through this program, homeowners can use Vrbo income to qualify for a refinance if the rental income is from a primary residence or a second home. Quicken Loans is the only lender that allows clients to use Vrbo income to qualify for a mortgage.
“Vrbo helps homeowners use one of their biggest assets as a source of income. 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,” said Jay Farner, CEO of Quicken Loans. “As our economy continues to evolve, it’s important that our lending calculations continue to evolve along with them.”
Homeowners’ Vrbo income that is used to qualify for a mortgage is accurate, real-time recorded data. They can get their earnings statements from Vrbo to share with their Quicken Loans mortgage banker.
“Homeowners who list their vacation homes on our marketplace have a unique financial opportunity to earn extra income. Over 50 percent of Vrbo owners use their rental income to cover at least 75 percent of their mortgage payment,”* said Bill Furlong, vice president of HomeAway, Americas. “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.”
This new relationship is only the latest in a string of mortgage innovations. In mid-2018, Quicken Loans rolled out Rate Shield, which protects homebuyers from rising interest rates. Buyers can lock their interest rate for 90 days without the need for a purchase agreement, so they can shop for a home without the worry of keeping up with fluctuating rates. As an added bonus, if interest rates go down, their rate drops too.
“For Quicken Loans, innovation takes many forms. From reinventing the mortgage process with Rocket Mortgage to finding new ways for credit-worthy, responsible homeowners to qualify for a mortgage, our priority is always thinking about how we can make Americans’ financial lives easier,” said Jay Farner.
