Accessory Dwelling Units

Accessory Dwelling Units

Last week Troy and I were helping a client use income from an Accessory Dwelling Unit (ADU). Before doing the research, I thought an ADU had to be detached from the main house, but I was wrong. So, I thought I would share what I learned and how it could be useful to clients.

What are Accessory Dwelling Units?

An ADU can be:

  • Within a primary residence, such as a basement apartment
  • Attached to a primary residence, such as a living area over a garage
  • Detached from the home entirely

Financing Options for an Accessory Dwelling Unit

Here are some possible financing options for a borrower’s ADU home purchases or projects:

  • Add an ADU to an existing property with HomeStyle Renovation
  • Buy a home with an existing ADU using HomeReady
  • Refinance a home using ADU income with HomeReady

Please feel free to contact me for additional information.

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