Airbnb May Bring Unforeseen Consequences to Borrowers

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For homeowners that are thinking of making a couple of bucks extra by listing their homes on Airbnb when they go on vacation this article gives them a few points to ponder before renting.

For a more detailed look at this subject – please read the article below.

The FHA Condos Approval Company, Inc.

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Since Airbnb’s launch in 2008, the home-sharing service has grown to currently include more than 2 million listings in 191 countries. Because of this, some home builders are developing new plans with the home-sharing industry in mind but for lenders, Airbnb may bring more trouble than anticipated, according to a recent post from Fannie Mae.

Dean Wehrli and Aaron Stubblefield, consultants with real estate firm John Burns Consulting, conducted an apartment feasibility study for a developer who considered setting aside space for Airbnb rentals. Fannie Mae reports that they found these units were likely to generate more revenue than those used for conventional long-term leases.

“We sense a trend developing, especially if the apartment markets soften,” Wehrli and Stubblefield write. “Apartment developers — even those building large rental complexes — could set aside a portion of their units as a kind of Airbnb rental pool to maximize revenue and market flexibility.”

Despite the seemingly obvious perks of this service, Airbnb could cause homebuyers potential problems as well. The largest of which comes in the form of violating the terms of the resident’s mortgage agreement. Fannie Mae says that this can be possible when using a property purchased as a residential dwelling for short-term rentals could violate your mortgage agreement. Additionally, if the lender decides regular use as a short-term rental could cause the property’s value to decline, the lender could call the loan due, meaning the owner would need to pay off the balance or lose the house.

To read the complete article – please use the link below.

Consequences of Airbnb

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