Airbnb Income and Mortgages

How to get a mortgage company to count your income.

As usual, reality takes time to sink in. The people running the mortgage business had/have no idea what Airbnb actually is.

If you Airbnb your primary residence at any time and put it on your tax return, the lenders will not, I repeat the lender will not use this income to help you qualify to finance the property that is on your Schedule E of the 1040. Why not? Simple. They do not understand it. They’ve said that this should be then categorized as an investment property even though it is not.

To quote a major lender, “Primary residence (never would use) and investment are both no go because it is temporary income and need a 12 month lease.”

Are you kidding me? This is sometimes a lifeline for people? Also, some have made this happen instead of working all night at 7/11.

I, though, have found a way to report the income, use the income and have the mortgage company accept it.

C not E

To insure that they can count the income, do not put your income and expenses on schedule E, put them on schedule C as a business. The net income will be the same, the IRS will see the same dollars and the lender will not be confused.

Have the schedule C say that you are a real estate management company. (You do have a rental license and you do manage the unit). Then, put your income and assets AND depreciation there.

Then, after 2 years on your tax return, they will average the NET income plus depreciation and bang, it is counted!

Boom. Done.

Fred Glick is a licensed mortgage and real estate broker in multiple states. He has been an active guest on CNBC since 2006 and has handled over 1B in transactions. See everything about Fred at