Feds make it easier for home buyers to buy houses with accessory dwelling units

New housing policy ‘helps more people qualify for homeownership,’ as well as boost supply of affordable housing, federal official says

• New federal housing policy allows home buyers to include rental income from accessory dwelling units in their mortgage application
• The change in policy will help more borrowers qualify for FHA financing for properties with ADUs
• ADUs are smaller housing units on the same lot as the main house, such as granny flats
• ADUs can be rented out to provide a source of income for homeowners
• Homeowners looking to add an ADU can use 50% of the estimated rental income to qualify for a mortgage
• Homeowners buying a property with an existing ADU can use 75% of the estimated rental income to qualify for an FHA-insured mortgage
• FHA-approved lenders can now offer mortgages on properties with ADUs under the new policies

The Federal Housing Administration has introduced a new policy that allows home buyers to include rental income from accessory dwelling units (ADUs) in their mortgage application. This change will help more borrowers qualify for FHA financing for properties with ADUs, boosting the supply of housing in neighborhoods where it is least available. ADUs are smaller housing units located on the same lot as the main house, such as granny flats, and can be rented out to provide a source of income for homeowners. Homeowners looking to add an ADU can use 50% of the estimated rental income to qualify for a mortgage, while those buying a property with an existing ADU can use 75% of the estimated rental income to qualify for an FHA-insured mortgage. FHA-approved lenders can now offer mortgages on properties with ADUs under the new policies.