What Is a JADU? Key Facts Every Homeowner & Investor Needs to Know

[Christina Labowicz]

Recently, we worked on an escrow for a property in Lemon Grove that had both a JADU and an ADU—and the sale quickly became complicated due to a major restriction:

The JADU required owner-occupancy, meaning the property could only be sold to a buyer who planned to live there.

This dramatically limited the buyer pool. On top of that, Fannie Mae and Freddie Mac do not lend on properties with both a JADU and an ADU, making traditional financing nearly impossible.

This situation highlights why homeowners and investors must understand the risks before adding a JADU to their property.

So, what exactly is a JADU, and how could it impact your ability to buy, sell, or finance a home? We'll discuss JADUs in detail in this week's blog, along with key JADU facts that every homeowner & investor needs to know.