New Way to Finance Your ADU
New Way to Finance Your ADU
A new bill in Congress could make it easier for homeowners to build Accessory Dwelling Units (ADUs) — like granny flats, backyard cottages, or in-law suites.
🔹 What’s Proposed:
HUD to launch a program insuring second mortgage loans for ADU construction.
Loan limit: up to 30% of FHA’s single-family loan cap or 100% of your property’s post-construction value.
Higher limits possible with rental income projections.
🔹 Why It Matters:
✅ Easier financing for homeowners
✅ Reduced lender risk with federal insurance
✅ More affordable housing in our communities
💡 ADUs can be attached, detached, or inside an existing home — and must have a kitchen, bath, and sleeping space.
📢 If passed, this could open doors (literally!) for thousands of homeowners to create more housing.