An accessory dwelling unit can make a property especially appealing. A detached guest house, converted garage, basement apartment, or backyard unit might provide space for relatives, a home office, or potential rental income. But when you are financing the purchase, that additional living space can introduce questions that would not necessarily exist with a more traditional single-family home.

When applying for a mortgage, buyers expect their income, credit, debts, assets, and employment to receive plenty of attention. Condo buyers can encounter another layer that sometimes comes as a surprise. Depending on the financing being used, the financial and operational condition of the condominium project itself may also matter.