Creates federal insurance for loans to build backyard homes, making financing easier.
This bill would create a new federal program to insure loans for building accessory dwelling units, often called backyard homes or in-law suites. This would make it easier for homeowners to get financing for these projects. It also would let Fannie Mae and Freddie Mac buy and sell these insured loans, which could help lenders offer more of them.
Today, there is no specific federal program to insure second loans for building accessory dwelling units (ADUs). Also, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) are not explicitly permitted to buy and sell such loans. If this bill becomes law, the Secretary of Housing and Urban Development would create a program to insure these second loans, and Fannie Mae and Freddie Mac would be allowed to purchase and securitize them. This would make it easier for homeowners to get financing for ADUs, with loan limits up to 30 percent of a standard home loan limit or 100 percent of the property's projected value after construction, and an annual insurance premium not exceeding 1 percent of the insured amount.
HR 4568 · 119th Congress · July 21, 2025 · AI Summary by gemini-2.5-flash · 10/10
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5 filings mentioned this bill
Amounts reflect total quarterly lobbying spend reported to the Senate, not bill-specific spending. Source: Senate LDA filings.