A policy change from the Federal Housing Administration is designed to spur more rental housing construction and bring homeownership within reach of more U.S. households.

An article in MReport highlights a policy change from the Federal Housing Administration (FHA) that will impact mortgage qualifications for homeowners who build or buy homes with accessory dwelling units (ADUs).
“The change in policy allows for the inclusion of rental income from the ADU in the borrower’s qualifying income, and would allow more borrowers to qualify for FHA financing for properties with ADUs, including 203(k) rehabilitation mortgages,” the article explains. The new rule is meant to make homeownership possible for more households and add to the rental housing supply.
The new policies allow mortgage lenders to qualify homebuyers based on estimated income from existing or proposed ADUs, “Include ADU-specific appraisal requirements for appraisers to clearly identify, analyze, and report on ADU characteristics and the estimated rent the ADU can be expected to generate,” and “Add ADUs to the types of improvements that can be financed under FHA’s mortgages for new construction.”
FULL STORY: FHA Amends Policy on Accessory Dwelling Units

Study: Maui’s Plan to Convert Vacation Rentals to Long-Term Housing Could Cause Nearly $1 Billion Economic Loss
The plan would reduce visitor accommodation by 25,% resulting in 1,900 jobs lost.

North Texas Transit Leaders Tout Benefits of TOD for Growing Region
At a summit focused on transit-oriented development, policymakers discussed how North Texas’ expanded light rail system can serve as a tool for economic growth.

Why Should We Subsidize Public Transportation?
Many public transit agencies face financial stress due to rising costs, declining fare revenue, and declining subsidies. Transit advocates must provide a strong business case for increasing public transit funding.

How to Make US Trains Faster
Changes to boarding platforms and a switch to electric trains could improve U.S. passenger rail service without the added cost of high-speed rail.

Columbia’s Revitalized ‘Loop’ Is a Hub for Local Entrepreneurs
A focus on small businesses is helping a commercial corridor in Columbia, Missouri thrive.

Invasive Insect Threatens Minnesota’s Ash Forests
The Emerald Ash Borer is a rapidly spreading invasive pest threatening Minnesota’s ash trees, and homeowners are encouraged to plant diverse replacement species, avoid moving ash firewood, and monitor for signs of infestation.
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