Properties with multiple Accessory Dwelling Units (ADUs) are increasingly common — particularly in California and other markets where homeowners are leveraging zoning changes to add rental income on top of a primary residence. The challenge: most lenders only recognize the main unit, leaving real cash flow on the table when it’s time to qualify the borrower.
At FundLoans, we can lend on properties with multiple ADUs, meaning your borrower’s full rental picture gets recognized — not just the main unit. This applies across all first-lien doc types, whether the loan is qualifying with bank statements, P&L, full doc, or DSCR.
Requirements
- The property must be considered a 1-unit. (2-unit properties may be considered on an exception basis only.)
- Zoning must permit multiple ADUs.
- The appraisal must include a comparable with the same number of ADUs to demonstrate that this configuration is typical for the area.
That last requirement is the one most files trip on, so it’s worth flagging early in the appraisal ordering process. If your appraiser knows up front that you need a comp with the same ADU count, they can scope the search accordingly.
If you have a client in this situation, let’s talk. Reach out to your Account Executive or contact us and we’ll walk through the scenario together.