Radian Timely Topics: GSE Requirements for the Accessory Dwelling Unit (ADU)

Accessory Dwelling Units or ADU's are becoming more common in mortgage transactions, yet many are unaware of the specific guideline requirements for this type of property. Are you ready for your next loan file featuring an ADU?

In this short video we will:
- Define an Accessory Dwelling Unit
- Review appraisal, zoning, and rental income requirements
- Discuss the differences in guideline requirements between Fannie Mae and Freddie Mac

Links & Resources:
Brand new from Freddie Mac: https://guide.freddiemac.com/app/guide/bulletin/2022-11?utm_source=eloqua&utm_medium=email&utm_campaign=2022-09-06_TECHNOLOGY_Announcement
Fannie Mae:
What is required for accessory dwelling units? (B2-3-04) https://selling-guide.fanniemae.com/2054713851/
Improvements Section of the Appraisal Report (B4-1.3-05) https://selling-guide.fanniemae.com/1032992541/

Freddie Mac:
Eligibility of a property with an ADU (5601.2) https://guide.freddiemac.com/app/guide/section/5601.2
Rental income generated from an ADU on a subject 1-unit Primary Residence (5306.3) https://guide.freddiemac.com/app/guide/section/5306.3
Freddie Mac Accessory Dwelling Unit (ADU) FAQ https://sf.freddiemac.com/faqs/accessory-dwelling-unit-faq
Freddie Mac Bulletin 2022-11 https://guide.freddiemac.com/app/guide/bulletin/2022-11