The Unit Out Back Can Help You Qualify.
Buy a home with an accessory dwelling unit, and use the rent it produces toward qualifying.*
A separate front door on the same title.
An ADU has its own entrance and its own exit, sits on a one unit property, and is smaller than the house it belongs to.
- A single habitable unit with separate entrance and exit*
- One unit properties with a single ADU only*
- The ADU must be subordinate in size to the primary residence*
- ADU rent may count toward qualifying, up to a capped share*
- Two months of reserves required when that rent is used*
- A full appraisal describing the ADU separately is required*
Financing for a home with a single accessory dwelling unit*
A single habitable unit with its own separate entrance and exit*
One unit properties with a single ADU only*
The ADU must be smaller than the primary residence*
Rent from the ADU can count toward qualifying, up to a capped share*
Two months of reserves are required when that rent is used*
What is the Saxton ADU Home Loan?
Financing a home that has a second, smaller living unit on it
An accessory dwelling unit is a self contained living space with its own way in and out, attached to or sitting alongside a one unit home. The house and the ADU together count as a single interest in real estate, which is what keeps this a residential loan rather than a multi-unit one.
Two things decide this one: whether the unit meets the definition of an ADU, and whether you need its rent to qualify. If you do, the cap and the reserve requirement both come with it.
The reason people care is the rent. Income from the ADU can be added to your gross monthly income for qualifying, subject to a cap on how much of your total income it can represent. That cap, and the reserve requirement that comes with it, are the two things that surprise people.*
Why choose the Saxton ADU Home Loan?
Built for buyers looking at a house with a casita, a garage conversion or a granny flat.
The Rent Helps You Buy
Income from the ADU is added to your gross monthly income for qualifying, which can change what you can afford.*
There Is A Ceiling
The ADU rent cannot make up more than a capped share of the total income used to qualify you. It helps; it cannot carry the file.*
Reserves Are Required
Using ADU rent to qualify brings a reserve requirement with it. Plan for it early rather than discovering it at underwriting.*
Subordinate In Size
The ADU has to be smaller than the primary residence. A second house of equal size is a different property type entirely.*
One Is The Limit
A single ADU on a one unit property. Two separate dwellings on one lot is not this loan.*
Not On A Cash Out
ADU rental income cannot be used to qualify on a cash out refinance. It is a purchase and rate and term feature.*
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about homes with an accessory dwelling unit.
A single habitable living unit with its own way in and out, separate from the primary home. A garage conversion, a casita or a granny flat all qualify if they meet the requirements.*
Yes. Rental income received from the ADU on the subject property is eligible and is added to your gross monthly income for qualifying.*
Yes, and it matters. ADU rent cannot exceed a capped share of the total monthly income used to qualify you, so it helps a file rather than carrying one.*
Two months of principal, interest, taxes, insurance and association dues when ADU rental income is used to qualify. It is a small requirement that catches people late.*
No. The ADU has to be subordinate in size to the primary residence. If it is equal or larger, you are looking at a different property type.*
Not on this route. One unit properties with a single ADU only. Multiple dwellings on one lot fall outside it.*
No. Use of rental income from an ADU is not eligible on a cash out refinance. It works on a purchase and on a rate and term refinance.*
Find out what you qualify for
If the house you are looking at has a second unit on it, there is likely a Saxton ADU Home Loan that fits. Get a fast, no obligation pre-qualification today.
Get Pre-Qualified*Loan amounts, rates, terms, and down payment requirements are subject to credit approval, income and asset verification, and program eligibility. Accessory dwelling unit financing is governed by program requirements covering the definition of the unit, its size relative to the primary residence, appraisal treatment, reserves and the share of qualifying income that rental income may represent. ADU rental income is not eligible on cash-out refinance transactions. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.