Quicken Loans has partnered with Vrbo to allow rental income earned through the latter to be used to qualify for mortgages, the companies announced.
Quicken said the program uses confirmed and documented rental income so homeowners can more accurately illustrate their full income stream. The program includes mortgages for primary residences, vacation homes and investment properties.
“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,” Quicken Loans CEO Jay Farner said in a release. “As our economy continues to evolve, it’s important that our lending calculations continue to evolve along with them.”
Quicken Loans said it is the only lender that allows clients to use Vrbo income to qualify for a mortgage.
“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, Vrbo’s parent company. “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.”