House hacking
Living in one part of a property and renting out the rest, such as other units, rooms or an ADU, to offset housing costs. It often lets buyers use owner-occupied loans with lower down payments.
Also called: house hack, live-in flip
Related terms
A single building with two separate units, each with its own entrance and kitchen. Owners often live in one unit and rent the other.
A building with two or more separate housing units. Properties with two to four units can use residential loans; five or more are usually financed as commercial.
A second, smaller home on the same lot as a main house, such as a garage apartment or backyard cottage. Local zoning decides whether you can build or rent one.
A mortgage insured by the Federal Housing Administration, allowing low down payments and more flexible credit standards. Borrowers pay an upfront and annual mortgage insurance premium, and loan amounts are capped by county.
The home you live in most of the year. Loans, tax breaks, and insurance are often better for a primary residence than for a second home or rental.