The Federal Housing Administration is proposing to allow income from an Accessory Dwelling Unit (ADU) to be used in the assessment of a borrower’s qualifying income for purposes of obtaining FHA-insured mortgage financing, including a Home Equity Conversion Mortgage.
Today, a draft Mortgagee Letter was posted on FHA’s Single Family Housing Drafting Table webpage for stakeholder feedback.
Interested stakeholders are encouraged to review and provide feedback on the draft ML by April 27, 2023.
With respect to HECMs, for purposes of the HECM financial assessment, the new guidance would permit the inclusion of rental income from an ADU in the assessment of a borrower’s qualifying income.
An ADU is a smaller, independent residential dwelling unit located on the same lot as a stand-alone (i.e., detached) single-family home.
