Finance of America Mortgage Helps Solve Nation’s Affordable Housing Crisis with Launch of ADU Refinance Option
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Homeowners with apartments or ‘grandma apartments’ can refinance, potentially lower their monthly payments and generate a rental income stream
CONSHOHOCKEN, Pa .– (BUSINESS WIRE) – Amid a declining supply of affordable housing in many parts of the country, Finance of America Mortgage LLC (“FAM”), today announced the launch of an innovative new feature on certain conforming loan products that can allow homeowners to refinance and consolidate loans used to build secondary housing (ADU) on their property at lower interest rates.
FAM’s ADU refinance option will allow some borrowers to refinance their primary mortgage and certain ADU financings such as a credit card or home equity line of credit into one new compliant mortgage. This option allows borrowers to potentially reduce their monthly interest payments if they have financed the construction of the ADU at a higher rate.
Beyond the potential reduction in tariffs, 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 ADU construction. . Sometimes called parental suites or “grandmother’s apartments”, DSUs can be detached or attached to a house. Some examples of attached ADUs could be a converted guest space above an attached garage or basement. Detached ADUs include sheds, guest cabins, or other structures independent of the main house structure.
“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, FAM president. “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.
ADUs are seen as a solution to help address the growing housing affordability crisis in the country, as homeowners can convert a garage or an unused portion of their land into new housing to generate a new stream of income by praising him. With the scarcity of new land to build on in many localities and the high cost of new construction, many cities have passed ADU-friendly zoning ordinances to increase housing stock. ADU development growth has been seen across the country, reaching around 1.4 million units in 2019, according to a report by Freddie Mac, and demand is highest in some of the fastest growing regions of the world. United States such as California, Florida and Texas. DSUs are also an attractive way of life for multigenerational households, especially homeowners with aging parents or adult children who need affordable housing.
Kathryn Amor, Director of Products at Finance of America, added, “We are proud to be leaders in the development of innovative products and are constantly exploring new ways to provide flexible options and fill market gaps. 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 finance.
Now, homeowners can build an ADU and then possibly refinance the costs of that ADU with FAM by consolidating ADU funding 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 origination arm of Finance of America Companies Inc. (“Finance of America”) (NYSE: FOA), a diversified, vertically integrated consumer lending platform.
Conditions and restrictions apply. For more information on the ADU refinance feature, please visit www.foamortgage.com/news/adu-refinance-option.
About Finance of America Mortgage
Finance of America Mortgage LLC is one of the nation’s largest mortgage lenders and is part of the Finance of America Companies (NYSE: FOA) family of companies. Since 2015, the Conshohocken, Pa.-Based lender has helped hundreds of thousands of people realize their dream of homeownership. Finance of America Mortgage has a team of more than 1,300 local loan advisors in more than 200 branches in 34 states. In 2020, Finance of America Mortgage funded nearly $ 30 billion in loan volume representing approximately 90,000 units nationwide, sourced from distributed retail channels, third-party originators (TPOs), and direct to consumers.
Finance of America Mortgage is ranked among the Best Mortgage Lenders 2020 by Scotsman Guide, the industry resource for mortgage originators. Finance of America mortgage advisors work closely with borrowers to guide them through the loan financing process every step of the way. Our loan advisors are renowned in the industry for their knowledge of the local market and their expertise in loan products with term, reverse and home improvement mortgages, refinance loans and HELOCs.
Finance of America gives back to the community through Finance of America Cares (FOA Cares). A 501 (c) (3) nonprofit, FOA Cares is the independent charitable and philanthropic arm of Finance of America. FOA Cares invests in value-driven programs and charitable activities through dynamic partnerships with community-based nonprofits as well as grantmaking and volunteering.
Finance of America Mortgage LLC is nationally licensed. NMLS ID # 1071 (www.nmlsconsumeraccess.org). Equal housing opportunities.
For more information on Finance of America Mortgage, please visit: www.foamortgage.com.
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Source: Finance of America Mortgage LLC