Unlock the Power of ADU Income for Your Borrower!

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Discover how ADU (Accessory Dwelling Unit) income can significantly benefit your borrower’s mortgage application. Both Freddie Mac and FHA permit ADU income, providing additional financial flexibility for homeowners.

Freddie Mac Requirements:

  • ADU must have an outside/separate entrance.
  • ADU and main living area must be separated by a door or wall.
  • ADU must include a kitchen (microwave accepted in lieu of stove/oven) and a bathroom.
  • Borrower must reside in the main living area to utilize ADU income.

Using Rents

  • Order a 1007 along with the appraisal order and instruct the appraiser to assess rents for the ADU only.
  • Ensure all criteria are met before the appraisal inspection, coordinating with the real estate agent.

ADU Income Placement

  • Unlock new possibilities for your borrower’s mortgage journey with ADU income. Contact us today to learn more and maximize their financial opportunities!

Important Note

  • Freddie Mac restricts ADU income usage to not exceed 30% of qualifying income.

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