Again, lender specific, so all great things to ask your LO!

(assuming the ADU us subordinate in size etc)  Maybe your LO is quoting it as a multi which has higher rates. 

Tagging my favorite LO here for more insight, @Wyatt Wolff.

And if the LO doesn't work...they got $5,000 and can put the house on the market and make another big chunk of money.

I live in Eastmont Hills and have watched the influx of younger people not only in my neighborhood but in Eastmont, Havenscourt, Arroyo Viejo, and Durant Manor - anywhere where there are homes selling for under $500K - and sometimes as little as $275K for something that is livable.  

I was told by at least a dozen people that renting out a basement was illegal, and lo and behold I decided to look into it myself (and it's not).

I am an LO at a DSCR lender known as Easy Street Capital.

Tagging my favorite LO @Wyatt Wolff - cheers!

Find a LO that does and lay out the plan before ever starting a transaction.  

Thanks for confirming thhat my LO is the bees knees!