Accessory Units
Fannie Mae will purchase a one-unit property with an accessory dwelling unit. An accessory dwelling unit is typically an additional living area
independent of the primary dwelling unit, and includes a fully functioning kitchen and bathroom. Some examples may include a living area
over a garage and basement units. Whether a property is a one-unit property with an accessory unit or a two-unit property will be based on
the characteristics of the property, which may include, but are not limited to, the existence of separate utilities, a unique postal address, and
whether the unit is rented. The appraiser is required to provide a description of the accessory unit, and analyze any effect it has on the value
or marketability of the subject property.
If the property contains an accessory unit, the property is eligible under the following conditions:
• The property is one-unit.
• The appraisal report demonstrates that the improvements are typical for the market through an analysis of at least one comparable property
with the same use.
• The borrower qualifies for the mortgage without considering any rental income from the accessory unit. (See B3-3.1-08, Rental Income, for
further information.)
If it is determined that the property contains an accessory dwelling unit that does not comply with zoning, the property is eligible
under the following additional conditions:
• The lender confirms that the existence will not jeopardize any future property insurance claim that might need to be filed for the property.
• The use conforms to the subject neighborhood and to the market.
• The property is appraised based upon its current use.
• The appraisal must report that the improvements represent a use that does not comply with zoning.
• The appraisal report must demonstrate that the improvements are typical for the market through an analysis of at least three comparable
properties that have the same non-compliant zoning use.
(See B4-1.3-04, Site Section of the Appraisal Report, for subject property zoning information.)