New Freddie Loan PERFECT for ADUs?

Freddie Mac's new second position mortgage will be perfect for building Accessory Dwelling Units (ADUs) as long as they don't mess up key parameters like max loan value.
**UPDATE 6/26/2024**
The loan product has received conditional approval and the FHFA has acknowledged how much feedback it received about having a higher maximum loan value amount. However, due to statutory constraints, they have set a relatively low max on the loan
Press release: www.fhfa.gov/news/news-releas...
FHFA Director Sandra Thompson's announcement: www.fhfa.gov/news/statement/s...
**END UPDATE 6/26/2024**
**UPDATE 5/25/2024**
The comment period for this product has closed. Subscribe to email updates and I'll let you know when the loan gets released: www.how-to-adu.com/sub
**END UPDATE 5/25/2024**
Look up if Freddie owns your primary mortgage: myhome.freddiemac.com/resourc...
You can read the announcement here: www.fhfa.gov/Media/PublicAffa...
You can read the loan details here: www.fhfa.gov/SupervisionRegul...
Special thanks to our sponsors Renofi (who offer a second position loan that is less restricted than this Freddie product, in many ways). Check them out here: loan.renofi.com/how-to-adu
Special thanks to Julee Felsman for help putting this video together. You can watch her channel here: • Mortgage Interest Rate...
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[@nm3547]

Email sent 🙂 - I'm grateful you had an opportunity to be there.

[@HowToADU]

Thank you!!!!

[@Hektman]

Nice man! Love how you keep up the good fight for Californians. I am thinking of starting off with 120sq ft build b4 getting into the big adu.

[@HowToADU]

Nice :) Thanks for watching

[@TheBoilingWater]

Great video! Can’t wait for your update of this matter. I really need this financing product, the HELO loan currently available to me is too little and too expensive with insane interest rate.

[@elianasd9866]

All comments are due by 5/22/2024!! Thanks for the info .... I am sending comments pronto! My primary is 707SF 1950s cottage in a 7k lot and ADUs in San Diego start at $200k! I need this to make mine happen. Thank you for the concise and fantastic explanation and yes, I want to see the other video (but please speak a bit slower on that one as it sounds a bit more complicado!).

[@HowToADU]

Haha. I’ll have to go slower just because it confused the heck out of me :) thanks for watching and sending in your feedback to the FHFA

[@lifeunderthesun831]

sent....great video...keep up the good work!

[@HowToADU]

Thanks mando!

[@charlieclown9913]

Message sent. Thank you.

[@mikef2811]

I am praying that this loan will work for ADU...Currently funding half of my ADU loan through a HELOC and the other half through my own investments. My current HELOC interest rate is brutal. As you have stated, I do not want to touch my current mortgage, it is at 3%

[@HowToADU]

Exactly! Write in! Let them know that you'd love to do a take out once the construction is done, so you can get out of your HELOC and into a better second position mortgage with Freddie, if that were available, and you need loan max value $XX.

[@pepsgarcia1]

Hi Mike. I'm in the same boat with my mortgage. I have a HELOC available but I'm considering other forms to help finance my ADU build. Wondering what other "investments" are you using? I'm considering a loan from my 401k.

[@mikef2811]

@@pepsgarcia1 That's an option. I sold about $100k worth of stocks and mutual funds to fund the other half of the ADU. Discuss this with your Financial advisor and see what your options

[@mikef2811]

@@pepsgarcia1 I sold $100K worth of stocks and mutual funds. Talk to your advisor if you have one and see what your options are.

[@mikef2811]

@@pepsgarcia1 Talk to your financial advisor to see what your options are. And see what is best for you. I sold a portion my stocks and Mutual Funds.

[@andychen1947]

email sent. However, if I understand correctly. In the pilot phase, the max 2nd position loan amount is only $78,277. It is a good start though.

[@HowToADU]

Yes - sorry, this is now a bit out of date. You can check the video description for the full update. Basically our advocacy emails were some of the few supportive messages they got. And I think we made a big difference getting the pilot approved at all! Unfortunately they are going to keep that 78k max. But I'm glad this even got approved, given the commotion that certain opponents were making.

[@matthewmullen1547]

Make it make sense

[@HowToADU]

It's crazy how these weirdly specific details can make or break a giant federal effort!

[@grammarguru554]

Does anybody know the average cost of a studio style 400-500 square feet ADU in SoCa

[@HowToADU]

You should go big stitch the estimate. You can book a free call with our sponsors at realm when you want to get more specific with the budget: f.realmhome.com//?

[@neilquinn]

I'd love to assume an FHA or VA loan for a cheaper interest rate, but it means putting $200-300k into a place by me to assume it. Would Freddie work with any loan type for this? With that much money locked up I'd want a way to access it for other uses without refinancing

[@pepsgarcia1]

Will VA backed loans be positively affected by this change?

[@ChrisMorrisW]

Email sent!

[@HowToADU]

Thank you, Chris!

[@gingerhitzke9185]

Saw this on TikTok

[@sameepkodia8164]

Will this work on 2 detached Adu on a existing duplex

[@HowToADU]

You should talk to an experienced lender when the products start rolling out. My understanding is that Freddie and Fannie don't generally take properties that literally have 2 ADUs. Having said that, I have seen applications that say 4 units, or 3 MF Units + 1 ADU, that go through. I don't know enough about your situation or the theoretical lending products that will come out for this, but your best bet is to just start talking with lenders like Julee or Renofi (sponsor) that already offer second position products.

[@sameepkodia8164]

@@HowToADU Thank for the reply. I'll send the email out to Freddie as per this video

[@user-rh8qw9gd7q]

How do l connect to the Freddie mac for my adu

[@HowToADU]

Call your lender with any questions about your specific project. This product is in a public comment period before it can be accepted or modified.

[@troycantrell1549]

See what happens

[@calebritchie9038]

Email sent 👍