New ADU financing options on the horizon

The Federal Housing Administration has proposed changes to its guidelines that could make it easier to buy a house with an accessory dwelling unit (ADU) or to build one. The proposal would allow lenders to offer renovation loans to build ADUs and consider future rent from the unit when calculating how much a customer can afford to borrow. The proposal would address one of the main barriers that people with little home equity and low to moderate incomes encounter when they try to get a loan for an ADU.