Home | Newsletter | Advertise
loading...

A New Bill Would Make It Easier To Finance Tiny Homes

  • July 21st 2025

by UrbanTurf Staff

✉️ Want to forward this article? Click here.

adu-2.jpg
An ADU in 16th Street Heights.

Legislation proposed last week aims to make it easier to finance accessory dwelling units (ADUs). 

On Friday, Rep. Sam Liccardo (D-CA) and Rep. Andrew Garbarino (R-NY) introduced the Supporting Upgraded Property Projects and Lending for Yards (SUPPLY) Act. The bill aims to expand access to financing for ADUs, also known as granny flats or in-law suites.

Specifically, the bill would create a government-backed loan program to finance the construction of tiny homes on the same lots as primary residences. It would allow FHA insurance on second loans for for these property types, as well as permit lenders to consider future rental income and the post-construction property value during underwriting.

"By allowing HUD to insure second mortgages for homeowners seeking to finance ADU construction, this bill will ensure that property owners have access to ADU financing, which will ease housing shortages and improve affordability," said Buddy Hughes, chairman of the National Association Of Home Builders. 

See other articles related to: accessory dwelling units, adu

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/a_new_bill_would_make_it_easier_to_finance_tiny_homes/23706.

DC Real Estate Guides

Short guides to navigating the DC-area real estate market

We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!

First-Timer Primers

Intro guides for first-time home buyers

Red Flags Revealed During a Home Inspection Top 5 Tax Breaks For Homeowners Tax Relief for DC Homeowners
Condo Fee Tutorial What is a Rent Back? 10 Ways To Tell If a Home Renovation is Well Done
Obtaining a Basic Business License For Your Rental What is an Adjustable Rate Mortgage? The Splitting the Rent Formula
How Much Cash Do You Need to Buy a House? Is This Condo Building Financially Healthy? Interest Rates and Mortgage Points
The Scoop on Mortgage Insurance

Unique Spaces

Awesome and unusual real estate from across the DC Metro

The Most Intriguing Loft in DC The R Street Firehouse DC’s One-Room House
Dupont Circle’s Old Frat House To Become Alley Home Best Transition From a Garage To a Home The Roundhouse
Tilden Gardens Restaurant-Turned-Home Hits Market Next Week Logan Circle’s Most Intriguing Garage Frank Lloyd Wright Goes Green in Kensington
Sears Bungalow Gets a Modern Makeover Old Town General Store Becomes Three-Level Home Making the Most of a Skinny House
A Studio 27 Renovation on Capitol Hill Once a Carriage House, Now a Home The Bank that Became a Home
From Pie to Hooch to Heroin to Home The Live-Aboards of Gangplank Marina A Treehouse with Rock Creek Park As A Backyard
Modern Tranquility in Sperryville Saddle Up For Stable Living Throwing a Curve at 550 Square Feet
A Modern Hilltop Retreat Tilden Street Restaurant Becomes Spacious Home Focus on Design: A Vastu Unit at 22 West
The DC Area’s First Net Zero Home A Yankee Goes Green DC’s First Carbon Neutral Home
Eco-Friendly Alley House Off H Street The Gym, The Stables and The Firehouse