On June 3rd Freddie Mac announced changes to Freddie Mac conventional mortgages for single family homes with granny units. These changes allow for expanded financing on Freddie Mac mortgages. So, if you’re looking for a mortgage that has a single-family resident with a granny unit this information might be for you.
The following changes at Freddie Mac are as follows; accessory dwelling units have expanded to two unit and three-unit properties. Previously accessory dwelling units were only allowed for one-unit properties. In other words, you can have a duplex or a triplex with an added granny unit and still be eligible for conventional financing for purchase. Other changes; your rental income from the accessory dwelling unit can be used to help qualify, whereas previously such income was not allowed. This means if you were looking at a single-family residence, and that property had an accessory dwelling unit, or a granny unit, the rents from that property could not be classified as income to help qualify. This guideline change now allows the income from that other unit to now help support financing going forward. This expanded financing opens the door for more people to secure financing on harder to fund type transactions that help support more income. The income from the added granny unit can now be classified as eligible income to help a borrower qualify. Which means potentially doing less down payment, less cash to close, or helping to support a lower debt to income ratio.
Scott Sheldon is a local mortgage lender, with a decade of experience helping consumers purchase and refinance primary homes second homes and investment properties. Learn more at www.sonomacountymortgages.com.