Answer: It depends on the property and the loan scenario. Accessory Dwelling Unit (ADU) income or property features may be considered on eligible transactions when supported by the appraisal and applicable program guidelines.
If your borrower owns or is purchasing a property with a legal ADU, additional rental income may be considered in certain situations. Property eligibility, occupancy, appraisal findings, and underwriting requirements all play a role in determining whether ADU income can be used.
Reviewing the appraisal and current program guidelines early in the process can help determine the best way to structure the loan.
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