The full explanation
According to Fannie Mae, it must have its own entrance, kitchen, sleeping area and bathroom, and be smaller than the main house. If it can only be reached through the main house, or it is open to it with no privacy, it does not count as an ADU. A second kitchen alone does not make one either. Fannie Mae allows only one per lot, and not with a two- to four-unit home.
An example
Irene's parents live in a small cottage behind the house with its own entrance, kitchen and bathroom. The appraiser records it as an ADU in the appraisal, and the lender checks whether Irene can count rent from that unit.
You will see it in…
- The appraisal of a home with an extra unit
- Listings for homes with a cottage or separate unit
- Your city's or county's building permits
