Mortgage Navigator • Conventional • Rental Income

ADU rental income

An ADU can help a borrower qualify, but the agencies place specific limits on when and how much rent can be used.

Build My Mortgage Game Plan Conventional Navigator

Fannie current limitations

Fannie permits rental income from one existing ADU on an eligible one-unit principal residence for purchase or limited cash-out refinance transactions. The qualifying ADU rental income is capped at 30% of total qualifying income.

Documentation

The rental amount must be supported under Fannie's current subject-property rental rules and appraisal/rent documentation requirements.

Freddie

Freddie also permits rental income from an ADU on qualifying one-unit properties under its own Sections 4504.5 and 5306.1 framework.

Agency Difference: ADU eligibility and income limits should be compared directly rather than assuming Fannie's 30% cap is automatically Freddie's rule.

Official guide baseline

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide

Rental-income rules are transaction-, property-, ownership-history- and management-experience-specific. Current guide controls.