3 important pieces when looking at FHA when buying with an ADU to house hack

[Ray Williams]

Hi All,

Sharing a little more depth to the FHA announcement on ADU income for you all in house hack mode. Make sure to know these things. Hope you find value in this info.

1) The lender will not reduce the qualifying income from the mortgage payment. You will qualify for the full payment, they will add any effective income to your qualifying income (This can blow up debt ratios if not known). 

2) While they will use 75% of the estimated rent (by appraiser) or lease, you will only get credit for 30% of your total qualifying income. 

3) If the lender is using income to qualify you, you'll need 2 months of reserves