Since 2015, the Conshohocken, PA-based lender has helped hundreds of thousands of people achieve their dream of homeownership. For more information about the ADU refinance feature, please visit About Finance of America Mortgageįinance of America Mortgage LLC is one of the nation’s largest home mortgage lenders and part of the Finance of America Companies (NYSE: FOA) family of companies. (“Finance of America”) (NYSE: FOA), a diversified, vertically integrated consumer lending platform. The ADU refinance option is available nationwide through all of FAM’s lending channels and applies only to single-family, primary homes.įAM is the mortgage originations subsidiary of Finance of America Companies Inc. Now, homeowners can build an ADU, and then potentially refinance the costs of that ADU with FAM by consolidating the ADU financing with their primary mortgage. It also builds on the company’s diverse suite of lending solutions and compliments our recent expansion into home improvement financing.” This unique opportunity will serve borrowers with conforming loan amounts and allow borrowers to potentially utilize some ADU rental income to qualify. Kathryn Amor, Chief Product Officer at Finance of America, added, “We pride ourselves on being leaders in innovative product development and are constantly exploring new ways to provide flexible options and fill gaps in the market. ADUs are also an attractive living arrangement for multigenerational households, particularly for homeowners who have aging parents or adult children who need affordable housing. The growth in ADU development has been seen around the country, reaching about 1.4 million units as of 2019, according to a Freddie Mac report, and demand is highest in some of the most rapidly-growing regions in the U.S. With the scarcity of new land to build on in many localities and the high cost of new construction, many cities have adopted ADU-friendly zoning ordinances to increase housing inventory. We’re ready to help expand access to this cost-effective way for homeowners to enhance their properties and make the dream of homeownership more attainable for the modern family.”ĪDUs are seen as one solution to help address the nation’s growing housing affordability crisis as homeowners can convert a garage or unused portion of their lot into a new housing unit to generate a new stream of income by renting it out.
“The demand for ADU development will continue to grow, especially as the pandemic has shifted housing preferences and more cities adopt ADU-friendly zoning changes. “We recognized a need to help increase access to new housing in areas that have increased density, as well as assist homeowners who wish to leverage that garage or section of land to generate additional income,” said Bill Dallas, President of FAM.
Detached ADUs include carriage houses, guest cottages, or other structures that are free-standing from the main home structure. Some examples of attached ADUs might be a guest space converted above an attached garage or a basement. Sometimes called in-law suites or “granny flats,” ADUs can be detached or attached to a home. This option helps borrowers potentially reduce their monthly interest payments if they financed the construction of the ADU at a higher rate.īeyond the potential rate reduction, FAM’s ADU offering is designed to help create more affordable housing options and allow homeowners to take advantage of recent state changes that have encouraged the construction of ADUs.
CONSHOHOCKEN, Pa.-( BUSINESS WIRE)-Amid a dwindling supply of affordable housing in many areas of the country, Finance of America Mortgage LLC (“FAM”), today announced the launch of an innovative new feature on certain conforming loan products that may enable homeowners to refinance and consolidate loans used to build an accessory dwelling unit (ADU) on their property at lower interest rates.įAM’s ADU refinance option will allow some borrowers to refinance their primary mortgage and certain ADU financing like a credit card or home equity line of credit into a single, new conforming mortgage loan.
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