Use Your Home’s Equity to Build an ADU

ADUFinancing
Written By Sean Timberlake
ADU in a back yard

Need private space for family or a way to create income? An Accessory Dwelling Unit (ADU) could be just what you're looking for.

You can use an FHA 203(k) Standard, FNMA HomeStyle® Renovation, or Freddie Mac CHOICERenovation 5M loan to build your ADU.

What to know:

• The primary home must be owner-occupied

• The ADU must be smaller than the primary home

• Future rental income can't be used to qualify for the loan

• Only one, 1-unit ADU allowed on the property

• FHA 203(k): ADU must be attached to primary home

• HomeStyle® or CHOICERenovation 5M: ADU can be attached or detached

• Mortgage payments can't be financed when building an ADU

• Check your local zoning eligibility before you start planning your ADU!

Ready to get started? Contact our financing parter Monica di Perna at CrossCountry Mortgage today.

ADU financing flier
Sean Timberlake
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