Thursday, September 22, 2016

ADU 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

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.


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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