The enhancements to FHA Connection follow the recent publication of Mortgagee Letter 2023-17, which updated Financial Assessment guidelines to permit income from Accessory Dwelling Units to be used in qualifying HECM borrowers.
FHAC now includes:
- An “Accessory Dwelling Unit” Yes/No indicator field to the Case Number Assignment, Insurance Application, HECM Financial Assessment, and HECM Insurance Application screens.
- An “Amount of Total Income Derived from ADU” field to the Forward Loan Insurance Application, HECM Financial Assessment, and HECM Insurance Application screens to indicate the dollar amount of ADU rental income that is included in Total Income.
- A “Limited or No History of ADU Income” checkbox to the Forward Loan Insurance Application, HECM Financial Assessment, and HECM Insurance Application screens.
What’s next: This new functionality will be available for use beginning Friday, November 17, 2023, and must be used for transactions on properties with ADUs by December 4, 2023.