The FHA now lets you count income from accessory dwelling units like garage apartments or basement rentals when qualifying for a mortgage. Previously this income didn't count. It won't fix housing affordability, but it could help you qualify for a bigger loan.
Hey now, Drew 2 Time. Hey, recently I talked about how Fannie Mae was helping us house hack easier. FHA just came out with something too. They stated that we will start allowing ADU income to help you qualify for a home. What's an ADU? Well, it stands for accessory dwelling units. Basically, this is just a mother-in-law suite or a garage apartment or a basement apartment. Something that we have that's separate from the main home that we can rent out and earn income for. Well, previously they would not allow that income to help us qualify, and now they do. So will this announcement change the face of housing? No, it's still pretty expensive to afford a home, but using the income from an ADU will help many people qualify for a higher price point. Hey, hope this makes sense how I'm describing it. For any FHA questions or anything about loans, feel free to reach out. Thanks for watching today's Drew 2.
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