AIRBNB and How It Affects Your Motgage

Michael Lodge

by Michael Lodge

I have written about how your taxes are affected by your income when you turn your house or property into a AIRBNB.  I found this great article of how it also affects your mortgage when you try and refinance.  This article is written by Jon Fingas, here is a link to the original article (  But I have also provided it to you below.  It is a short article but something to think about as you try and refinance your mortgage.

Renting out your home on a service like Airbnb is supposed to be good for your bottom line, but it’s now clear that it can create some headaches if you’re a homeowner. The Wall Street Journal is warning that banks may turn down your attempt to refinance your mortgage if they learn that you’ve rented your home on Airbnb. Simply speaking, banks tend to see homes as either personal residences or investments and don’t like the risk associated with the latter. While some banks may allow a gray area between the two, others won’t be so kind — Bank of America, for example, won’t give you a home equity line of credit if there’s a “material amount” of commerce in your home.

Airbnb tells the newspaper that rejections are “incredibly rare,” although it doesn’t have statistics. It’s believable, though. Only some hosts rent their homes frequently enough that it could make up a large chunk of their income, and a mere fraction of those people would both want to refinance their mortgages and run into trouble doing it. Still, this is a useful heads-up: you may have to either live with your existing mortgage terms or deal with the higher interest rates that come with treating your home as an investment.

If you have any questions regarding tax issues on AIRBNB, contact our office at:  877.778.1770 or send an email to: and visit our web site at:

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