FINANCING
If
you’re unable to finance your accessory dwelling project with cash savings, the following
conditional loan types are worth exploring and may be viable options
depending on your current financial situation. Some lenders are
beginning to catch on but in general, the industry remains unfamiliar
with the added value ADUs and DADUs can bring to your property, thus
making financing more arduous than necessary.
Cash-out refinancing – Refinance your existing loan for more than you owe, taking out the difference in cash
Home equity loan & Home equity line of credit (HELOC) – Also
referred to as a second mortgage, both types allow you to borrow money
using your home’s equity as collateral
Renovation financing / FHA 203(k) – Combines a construction loan with your home mortgage
REFERENCES
If you’re interested in more information on accessory dwelling units in Seattle, check out the following:
Seattle Department of Construction and Inspections
Additional information on permitting, requirements, guides and reports for both ADUs and DADUs
Accessory Dwellings
A
Portland based one stop internet source for all things ADU. Some
information may not be directly applicable to Seattle, but we’ve found
them to be an invaluable reference nonetheless.
SUMMARY
Seattle's
existing neighborhoods are one of the largest untapped resources
available for increasing affordable housing stock. By no means will
this typology single-handedly solve our housing shortage, but it's an
easy and beneficial step in the right direction that will have little or
no impact on the scale and character of our neighborhoods. You only
need to look at the track records in Vancouver and Portland to see any
concerns about changing the character of our neighborhoods have proven
to be unfounded. In our pursuit of livability, affordability, community
and access to housing for all, we look forward to welcoming more ADU and
DADU projects into our community.
Happy Investing!
Today's blog courtesy of David Taber, Neiman Taber Architects
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