The U.S. Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), has announced (on October 16, 2023) a significant policy change that expands access to mortgage financing for homes with Accessory Dwelling Units (ADUs). This policy shift aims to support the Administration’s housing supply and homeownership goals.
An ADU is a separate living unit on the same property as the primary residence, providing additional housing options. The FHA’s new policy allows lenders to consider income generated from ADUs when underwriting a mortgage for a primary residence. This means that rental income from ADUs can be included in the borrower’s qualifying income, making it easier for more individuals to qualify for FHA financing for properties that feature ADUs, including the 203(k) Rehabilitation mortgages.
The FHA’s new ADU policy is a significant step toward expanding access to homeownership and addressing the affordable housing crisis. By allowing borrowers to include ADU income in their mortgage qualification, this policy helps make homeownership more attainable for a broader range of individuals while also boosting the supply of rental housing in communities. It aligns with Administration’s goals of increasing housing supply and affordability, ultimately working to make quality housing more accessible for everyone.
The new policies introduce several key changes:
Licenses
Maryland MHIC: 151479
Maryland HBR
Virginia Class A: 2705184565
DC Contractor: 410519000096
Counties Served
Cities Served
Licenses
Maryland MHIC: 151479
Virginia: 2705184565
DC: 410519000096
Counties Served
Cities Served
Makara Builders, LLC © 2025. ALL Rights Reserved.
