Federal Register #2026-22038

USDA rule expands guaranteed-loan eligibility for properties with ADUs and certain home-based businesses

The USDA Rural Housing Service issued a final rule updating eligibility under its Single Family Housing Guaranteed Loan Program. - Government buyer and office: U.S. Department of Agriculture (USDA), Rural Housing Service (RHS), Single Family Housing Guaranteed Loan Program. - What changed: Otherwise eligible properties containing or planned to contain one or more income-producing accessory dwelling units (ADUs) may qualify for loan guarantees. - Home-based businesses: The rule clarifies eligibility for homes used for businesses that do not require commercial real estate features. - Additional requirements and definitions: The rule defines “Accessory Dwelling Unit” and “Living Unit” and clarifies related property site requirements. Potential ADU income is not included in applicants’ income calculations. - Procurement status: This is a regulatory final rule, not a request to purchase products or services. No OEMs, vendors, quantities, or part numbers are identified.

Description

The Rural Housing Service, U.S. Department of Agriculture, issues a final rule amending the Single Family Housing Guaranteed Loan Program regulations. The rule permits financing otherwise qualifying single-family properties that contain or will contain one or more income-producing accessory dwelling units (ADUs), and clarifies eligibility for properties with features accommodating home-based businesses that do not require commercial real estate features. It also adds definitions for “Accessory Dwelling Unit” and “Living Unit” and clarifies site requirements for properties with income-producing ADUs. The rule is effective December 28, 2026.

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