PHILADELPHIA—A new federal housing policy will make it easier for some home buyers to qualify for a mortgage by allowing them to include rental income from accessory dwelling units as part of their application.
The Federal Housing Administration announced Monday that under a new policy, it will allow lenders to count income from accessory dwelling units when underwriting a mortgage. The rental income from the ADU will be included in the borrower’s qualifying income.
The change in policy will “allow more borrowers to qualify for FHA financing for properties with ADUs,” the FHA said in a press release.
“This not only helps more people qualify for a mortgage and build wealth, it also helps to boost the supply in neighborhoods where housing is least available,” Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon said during the Mortgage Bankers’ Association’s annual press conference on Monday.
