Finance of America launches new loan program

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As more and more people look to add affordable housing to existing land, Finance of America Mortgage LLC, (FAM) has launched a new loan product that will allow homeowners to refinance loans used to build secondary suites to take advantage of today’s ultra-low interest rates.

The new refinancing option will be available to certain borrowers who have both a primary mortgage and a secondary mortgage for an ADU, colloquially referred to as “in-laws” or “granny apartments” which can either be attached to the primary property. , or detached, such as a guest house.

According to research by Freddie mac, there were approximately 1.4 million ADUs across the country in 2019, with half of those units residing in four states: California, Florida, Georgia, and Texas.

“We recognized the need to help increase access to new housing in areas of increased density, as well as help homeowners who wish to take advantage of this garage or section of land to generate additional income. “, said Bill dallas, president of the FAM. “The demand for ADU development will continue to grow, especially as the pandemic has altered housing preferences and more cities are adopting ADU-friendly zoning changes. We’re ready to help expand access to this cost-effective way for homeowners to improve their properties and make the dream of home ownership more achievable for the modern family.

In September, the Biden administration and ATH announcement a plan to create 100,000 additional affordable housing units across the country over the next three years. A separate report HUD has suggested that one way to add additional units to pre-existing areas that are being built is to change zoning codes to allow ADUs, citing examples of what California and Washington have instituted in recent years. .

“We pride ourselves on being leaders in the development of innovative products and are constantly exploring new ways to provide flexible options and fill market gaps,” said Kathryn Amor, FAM product manager. “This unique opportunity will serve borrowers with compliant loan amounts and allow borrowers to potentially use some ADU rental income to qualify. It also builds on the company’s diverse lineup of loan solutions and complements our recent expansion into home improvement financing.

According to FAM, homeowners can now build an ADU and then potentially refinance the costs of that unit by consolidating the ADU financing with their primary mortgage. The ADU refinance option is available nationwide through all of FAM’s lending channels and applies to primary single-family homes only. FAM is the mortgage structuring subsidiary of Finance of America Companies Inc.


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