A policy change from the Federal Housing Administration is designed to spur more rental housing construction and bring homeownership within reach of more U.S. households.
An article in MReport highlights a policy change from the Federal Housing Administration (FHA) that will impact mortgage qualifications for homeowners who build or buy homes with accessory dwelling units (ADUs).
“The change in policy allows for the inclusion of rental income from the ADU in the borrower’s qualifying income, and would allow more borrowers to qualify for FHA financing for properties with ADUs, including 203(k) rehabilitation mortgages,” the article explains. The new rule is meant to make homeownership possible for more households and add to the rental housing supply.
The new policies allow mortgage lenders to qualify homebuyers based on estimated income from existing or proposed ADUs, “Include ADU-specific appraisal requirements for appraisers to clearly identify, analyze, and report on ADU characteristics and the estimated rent the ADU can be expected to generate,” and “Add ADUs to the types of improvements that can be financed under FHA’s mortgages for new construction.”
Read the full story: FHA Amends Policy on Accessory Dwelling Units
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