HUD Opens New Doors: Expanding Mortgage Access with ADUs

In recent years, the demand for Accessory Dwelling Units (ADUs) has been on a steady rise. Whether homeowners are seeking an additional source of income or merely looking to provide a separate space for family members, ADUs have proven to be a versatile solution.

Now, thanks to new policies from the U.S. Department of Housing and Urban Development (HUD), financing your ADU has become easier than ever before.

HUD now allows projected ADU rental income to be counted when qualifying for an FHA mortgage. This means homeowners can use future rental income to qualify for larger loans.

FHA loans now cover both the construction of new ADUs and the purchase of homes with existing ADUs. This opens up financing to a much broader pool of borrowers.

The new policies also permit refinancing to fund ADU construction, giving existing homeowners a clear path to tap into their home equity for ADU projects.

At ADORE Homes, we work with lenders who are fully versed in these new HUD policies, ensuring you get the maximum benefit from these expanded financing options.