Now use 75% of rents on FHA ADU to help income!
FHA ADU (Accessory Dwelling Unit) helps borrowers qualify now by letting them use 75% of rents on the unit. This is not possible with Fannie Mae or Freddie Mac conventional loans nor can you do this with VA. The FHA ADU updated guidelines will help considerably when a client is just over the debt to income ratios allowed to approve a loan. By adding in 75% of the ADU’s income, this will bring the clients debt ratios into guidelines and the loan will be approved! One of the turnoffs to FHA loans is, despite the usually lower interest rate, the payment still is higher than conventional Fannie Mae and Freddie Mac scenarios because the borrower must have Mortgage Insurance. The use of the FHA ADU rent, now will pretty much offset that expense, leaving the client with the lower interest rate advantage at closing. Find out how this might work best for you by calling Michael E. Mitchell at Mitchell Mortgage, 530-406-2200, 707-259-1117 or 707-337-5970 cell.