When considering purchasing a mother-in-law apartment there are several things to consider. Not only are you incurring a home purchase, you are also taking on renters that could potentially cause problems to your home and treat your house poorly and not take care of your investment. You are giving them a chance and opportunity to stay in your home but if they don't take care of that place then this could be a liability not an asset. However, there are a lot of individuals that will take care of your home and do a good job with up keep and care of the home. With that being said, if you are considering a mother-in-law with an FHA here are a few things that you should be aware of when getting the loan on this type of unit, since this is considered a ADU.
Accessory Unit / Accessory Dwelling Unit
The accessory unit is defined as a habitable living unit added to, created within, or detached from a single-family dwelling that provides the basic requirements for living, sleeping, eating, cooking, and sanitation.
Accessory Dwelling Units (ADUs) are commonly understood to be a separate additional living unit, including separate kitchen, sleeping, and bathroom facilities, attached or detached from the primary residential unit, on a single-family lot. ADUs are usually subordinate in size, location, and appearance to the primary unit and may or may not have separate means of ingress or egress.
Attached units, contained within a single-family home, known variously as "mother-in-law apartments," are the most common type of accessory dwelling unit. Accessory units usually involve the renovation of a garage, basement, or small addition to a single-family home.
“Accessory dwelling unit" means a subordinate dwelling unit may or may not be incorporated within, or detached from a single-family structure. Accessory units may not be subdivided or otherwise segregated in ownership from the primary residence structure.
Some accessory units may predate the adoption of local zoning ordinance and may therefore be classified as legal nonconforming units.
Utility Service Requirements
An accessory apartment must be connected to the utilities (except telephone, television and cable) of the dwelling unit and may not have separate services.