Mortgage Navigator • Conventional • Property & Appraisal

Accessory dwelling units

An ADU does not automatically turn a one-unit house into a duplex.

Fannie definition

An ADU is an additional independent living area associated with a one-unit primary dwelling and must provide living, sleeping, cooking and bathroom facilities.

One ADU maximum

Fannie permits only one ADU on the parcel of a one-unit primary dwelling under its general ADU framework. ADUs are not permitted as ADUs on a 2–4 unit property.

Legal status and marketability

Zoning, permitting, market acceptance and appraisal treatment still matter. An illegal second unit cannot simply be relabeled “ADU” to make the property eligible.

Agency Difference: Fannie and Freddie both allow qualifying ADU scenarios, but appraisal, rental-income and property-eligibility details should be checked under the selected agency.

Official guide baseline

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide

Property eligibility, valuation method, appraisal findings, AUS messages and lender overlays all matter. The appraisal supports collateral eligibility; it does not replace underwriting.