zerohedge.com / by Ashlee Kieler via Consumerist.com / Sep 8, 2016 1:10 PM
Until recently, home loans generally covered two types of properties: primary residences or investments. That was before services like Airbnb allowed anyone with an extra room to make a bit of extra money by renting it out for short periods of time. This blurred line between “my house” and “my investment” is causing trouble for some homeowners when they go to refinance their mortgages.
More and more homeowners say they are finding themselves on the receiving end of rejection letters from their long-time banks when trying to refinance their mortgage, simply because they rent a room on Airbnb, the Wall Street Journal reports.
When applying to refinance their loans, owners say they were under the impression that having a higher income would improve their credit. So they reported all income drawn for short-term rental deals.
But banks don’t exactly see it that way, the WSJ reports.
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