Credit

  • When Inaccurate Credit Exists on the Credit Report, Use Five Fannie Mae Codes in Desktop Originator/Underwriter to Submit Correctly

    When Innacurate credit Exists, Use 5 FNMA Fixes

  • Title or Question

    Describe the item or answer the question so that site visitors who are interested get more information. You can emphasize this text with bullets, italics or bold, and add links.

  • Title or Question

    Describe the item or answer the question so that site visitors who are interested get more information. You can emphasize this text with bullets, italics or bold, and add links.

Navigating the World of Owner-Occupied ADUs for Loan Officers

As a loan officer, it is important to have a good understanding of owner-occupied Accessory Dwelling Units (ADUs) to properly advise and assist your clients. Here are some key points to consider:

Definition: An owner-occupied ADU is a secondary dwelling unit on a single-family residential property that is occupied by the homeowner.


Purpose: ADUs are becoming increasingly popular as a way for homeowners to generate additional income or provide housing for aging parents, adult children, or renters.


Zoning and regulations: ADUs are subject to local zoning and building regulations, so it's important to check the rules and regulations in your area to determine what is allowed and what isn't.

Financing: Depending on the specific rules and regulations of your area, it may be possible to obtain a separate loan for the construction or renovation of an ADU. In some cases, the ADU may be considered part of the primary property and included in the mortgage for the primary residence.


Rental income: If the ADU is being used as a rental property, the rental income can be used to help qualify the borrower for a loan or refinance, as long as it is stable and likely to continue.


Appraisal: The value of an ADU can affect the overall value of the property, so it's important to consider this when assessing the property for a loan or refinance.


Insurance: It's also important to consider the insurance implications of an ADU, as the homeowner may need to obtain additional insurance coverage to protect both the primary residence and the ADU.

Overall, as a loan officer, it's important to be knowledgeable about owner-occupied ADUs and the regulations surrounding them to provide the best advice and assistance to your clients. For more information, reach out to Clients2Homeowners today!

Contact Us
Share by: