“We recognized a need to help increase access to new housing in areas that have increased density, as well as assist homeowners who wish to leverage that garage or section of land to generate additional income,” said FAM president Bill Dallas. “The demand for ADU development will continue to grow, especially as the pandemic has shifted housing preferences and more cities adopt ADU-friendly zoning changes. We’re ready to help expand access to this cost-effective way for homeowners to enhance their properties and make the dream of homeownership more attainable for the modern family.”
FAM noted that the ADU refinance option applies only to single-family, primary homes.
“This unique opportunity will serve borrowers with conforming loan amounts and allow borrowers to potentially utilize some ADU rental income to qualify,” said Kathryn Amor, chief product officer at Finance of America. “It also builds on the company’s diverse suite of lending solutions and complements our recent expansion into home improvement financing.”