Reading the actual guideline text below — never a general AI guess

What "Guest House" Actually Means in Official Guidelines

Here's what we're really talking about when the guidelines address a guest house or similar separate living structure: we're evaluating what the rules call an Accessory Dwelling Unit (ADU) — a standalone or attached living space with its own kitchen, bedroom, and bathroom on the same property as the main house. The key question we have to answer is whether this structure makes the property legally a one-unit home with an ADU attached, or whether it actually functions as a two-unit property, because that classification drives everything else about how we report it. Both VA and FHA require us to measure the ADU's living area separately from the main house, describe whether it can legally be rented out without restrictions, document its current use, and note any lease terms if someone is living there. The guidelines also acknowledge that manufactured homes on the site could serve this role, and the whole setup — main dwelling plus ADU — legally counts as a single real estate entity for appraisal purposes.

Straight from HUD/FHA Single Family Handbook 4000.1, VA Lenders Handbook (Pamphlet 26-7), and Fannie Mae Selling Guide — nothing added.