What is an Accessory Dwelling Unit or ADU for short?

What is an Accessory Dwelling Unit or ADU for short?

This is also called a mother-in-law suite. This is a very intriguing topic right now, especially with the pandemic going on because basically what a accessory dwelling unit is, it’s a separate living space on your property. Usually it’s a living space that has its own kitchen, its own bathroom, kind of like a separate apartment, its own entrance. Examples are maybe a converted garage or a garage that has a living space above it. Maybe a converted basement with its own entrance. Maybe it’s a whole separate structure, a separate little house that’s a separate residence where someone can stay in and this is intriguing in today’s world because this is a place that a family member could stay in or their family and have some privacy and have their own space to spread out in.

It’s a place that visitors could stay in, friends that maybe come to visit. Or it’s a place that once things open up and we can do VRBOs and Airbnbs again, this is a separate space that can provide a little bit of extra income for you.

So it’s a very, very intriguing thing to think about whether you’re buying a house to look for this feature in the house or if you already own a home and want to add an accessory dwelling unit, this is something that we could help you to potentially finance, whether it’s to build a separate two car garage with a living space above it is a really popular option or convert an existing space into a livable area.

One thing I wanted to note on this also is that I’m not a zoning expert or a real estate agent or anything like that, but typically what we see is that when you have a mother-in-law suite or accessory dwelling unit, your property is still considered a one unit property. It’s not considered a two unit property, which is key when you’re talking about financing because interest rates on a two unit property are higher than interest rates on a one unit property. So you’re still going to get a preferential interest rates as if you have a one unit property even though you have this accessory dwelling.

So give me a call if you have any questions on this or anything else loan related. That’s why I’m here. Happy to answer it for you. Hope you guys are staying safe and healthy and you guys have a great rest of your day. Appreciate you watching it.