Did you know?
Recently, HUD announced plans to allow rental income from an accessory dwelling unit (ADUs) to be considered for FHA loans. This is part of an effort to increase the number of affordable homes available on the market, and allow more first-time home buyers.
The new policies will allow:
• 75% of the estimated ADU rental income to qualify for some buyers on an FHA mortgage as long as the ADU is existing before purchase.
• 50% of the estimated ADU rental income to qualify for the FHA Standard 203(k) Rehabilitation Mortgage Insurance Program for adding an ADU to existing structure.
• ADUs to be added to the list of improvement types that can be financed under FHA mortgages for new construction.