An Accessory Dwelling Unit (ADU) is a versatile living space that can include a living area above a garage, in a basement, or as a small addition to the main residence, providing homeowners with a unique opportunity to maximize the value of their property. potential. However, navigating the complexities of property financing with an ADU can be challenging, especially when it comes to meeting local zoning requirements and lender guidelines.
Did you know that even if an ADU is not completely legal under local zoning laws, it may still qualify for financing? Our team of experienced professionals is deeply familiar with working with Fannie Mae and Freddie Mac, two of the largest mortgage financing entities in the United States. Fannie Mae allows ADUs on properties, while Freddie Mac extends this allowance to properties with 1-3 units but not 4 units.
- living area above garage
- Living area is located in the basement
- Small addition to the main residence
One of the key considerations when financing a property with an ADU is ensuring that the unit will not jeopardize any future insurance claims made against the property. We work closely with lenders to assess the situation and determine the best course of action. Our goal is to ensure that the presence of an ADU does not hinder your ability to obtain a loan or affect the insurability of your property.
Additionally, it’s worth noting that the ADU must be smaller in size than the main residence. This requirement is critical to maintaining primary residence status and ensuring compliance with lender guidelines. Our team at MortgageDepot specializes in meeting these requirements, ensuring a smooth and efficient loan process for our customers.
We have the expertise and resources to work with Fannie Mae and Freddie Mac to ensure your loan process is seamless and successful. Please contact us to learn more about using ADUs for property financing.
