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A New Bill Would Make It Easier To Finance Tiny Homes

  • July 21st 2025

by UrbanTurf Staff

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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 https://dc.urbanturf.com/articles/blog/a_new_bill_would_make_it_easier_to_finance_tiny_homes/23706.

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