The U.S. Department of Housing and Urban Development (HUD) announced it would expand access to FHA financing for homes with or that plan to have accessory dwelling units (ADUs). Beginning immediately:
• Homebuyers will be able to use 75% of an existing ADUs rental income to qualify for an FHA-insured mortgage.
• Homebuyers who plan to build an ADU will be able to utilize the FHA 203(k) Rehabilitation Mortgage Insurance Program and count 50% of the estimated rental income towards qualifying for the loan.
• Homeowners will be allowed to include ADUs in improvements that may be financed under FHA’s mortgages for new construction.
HUD is also providing updates for appraisers so they can “identify, analyze, and report on ADU characteristics and the estimated rent the ADU can be expected to generate.