Acessory Dwelling Unit ("ADU")
An Accessory Dwelling Unit (ADU) is a secondary housing unit located on the same lot as a primary single-family residence.
These compact living spaces are designed to be fully independent, meaning they include:
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🛏️ Sleeping area
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🍳 Kitchen
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🚿 Bathroom
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🛋️ Living space
ADUs come in various forms:
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Detached units like backyard cottages or tiny homes
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Attached units such as additions to the main house
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Converted spaces like garages, basements, or attics
They’re often referred to by other names such as:
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Granny flats
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In-law suites
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Casitas
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Laneway houses
Why build an ADU?
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Provide housing for extended family
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Generate rental income
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Increase property value
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Support affordable housing initiatives
ADUs cannot be sold separately from the main home and must comply with local zoning and building regulations. In places like California, updated laws have made it easier for homeowners to build ADUs to address housing shortages.
Would you like help designing one or exploring local regulations in your area?
Section Title
Section Title
Accessory Dwelling Units (ADUs)
ADUs can add value to a borrower’s home, provide additional space for extended family, or allow a borrower to earn rental income, all while helping address the country’s affordable housing shortage. Selling Guide loan products can be used to purchase homes with ADUs, renovate an existing ADU or add an ADU to a borrower’s existing home.
What qualifies as an ADU?
An ADU, commonly referred to as an accessory apartment or in-law suite, is a smaller additional living space on the same lot as a single-family home. It must include space for living, sleeping, cooking and bathrooms independent of the primary residence. While the ADU may or may not include access to the primary residence, it must be accessible without going through the primary residence and there must be some expectation of privacy from the home