James St.Clair - REALTOR®

If you have an accessory dwelling unit (ADU) on your property that generates rental income, you’ll be pleased to know that our first lien Non-QM product suite now allows you to use that income for qualifying purposes.

Available across our Expanded-Prime, Non-Prime, and DSCR mortgage programs, this new policy provides more flexibility for borrowers with different housing situations.

To use rental income from an ADU for qualifying, a few requirements must be met:

Legal and Typical for the Area
The appraisal report must confirm that the ADU is legally permitted based on zoning regulations, either currently or having been grandfathered in. Additionally, the appraiser needs to verify that ADUs are common in the area by providing at least one comparable property with an ADU.

Maximum of One ADU
Our policy allows for a maximum of one ADU per subject property to be considered for rental income.

By accommodating ADU rental income, we’re adapting our products to align with the growing trend of multifamily housing solutions and helping borrowers qualify based on their complete financial situation.

If you have an ADU generating income, be sure to discuss this with your loan officer when applying for one of our Non-QM programs. With increased flexibility, you may find yourself better qualifying for the home loan you need.