A HomeReady Mortgage is a Fannie Mae, first-time home buyer loan program, with minimum down payment requirements, and some very particular underwriting characteristics. When a borrower is purchasing a single-unit primary residence with a 3% minimum down payment and there is an ADU present, 75% of the potential rents from the ADU can be used to qualify.
New research from Canada finds that ADUs and garden suites can function as voluntary version of affordable housing — with some important caveats.
Readers of this series may have noticed a positive tone change in the dire title of the series. That’s because yesterday, the Oregon Department of Revenue issued a draft rule that steers Multnomah County away from the misguided interpretation that they’d used this year–the interpretation that had caused detached ADUs to trigger a property reassessment– the interpretation which has caused a dramatic ADU development chilling effect in Portland in the last 6 months.
(This is Part II of The Death of Detached ADUs in Portland and What To Do About It. Part I, Part III, Part IV, and Part V are also available.) Action Items … Continue reading
Financing is, by far, the biggest barrier for most homeowners seeking to build an ADU on their property. Recently, I was trying to gain some clarification about three conventional loan products that can be used to help fund the construction of an ADU: First Mortgage Cash Out Refinance- taking out extra money when refinancing your ‘first mortgage’ .
Here is nicely formatted summary to the ways ADUs are being financed in Portland today. Even if you don’t live in the area, it should provide some ideas and precedents you can use. Enjoy!
Q. How is it that the accessory dwelling unit pictured below is being sold separately from the primary home on the same lot? A. It’s legally structured as a condominium. … Continue reading
Join other REALTORs, appraisers and lenders visiting green homes and ADUs across Portland. Have fun with your peers while you’re escorted by experts on buses to and from the … Continue reading
Will building an ADU raise your property taxes? Very likely yes. Is that a good thing for the community?
Opponents of ADUs frequently charge they will bring down property values for the whole neighborhood. What is the evidence?
Some survey results about ADU costs… and some thoughts about why ADU developers aren’t usually real estate “pros.”
Appraisals for ADUs have always been tricky. Here is a new guide to help appraisers, real estate agents, and finance professionals understand current “best practices” for appraising ADUs.
An experienced developer explains why ADUs have such a wide range of costs, and how to estimate costs for your own project.
Financing your ADU has become easier. I am sure that when someone mentions financing, or budgeting, or anything to do with numbers for a project there is a slight shudder … Continue reading
Cooking meth is apparently one way to make money fast. But, for many of us, this option is far less appealing now that we’ve finished watching Breaking Bad. After the … Continue reading
In most markets, financing the construction of ADU’s is notoriously difficult. When constructing an ADU, you need to have all the cash upfront to pay a contractor for the cost … Continue reading
(Editors note- for the most recent SDC waiver information, read this post. 4/2016) Great News! This afternoon, Portland’s City Council voted unanimously to extend the waiver of Systems Development Charges … Continue reading
Today the Appraisal Journal publishes a research paper about residential properties with accessory dwelling units (ADUs). The paper describes an income-based method for appraising properties with ADUs, and concludes that … Continue reading
A quick note about language here. One reason people get so confused, and perhaps heated, about accessory dwellings is that language about them is confused. The different names conjure up … Continue reading
As a mortgage broker in the Portland area for almost 8 years, I’ve learned “the harder I work, the luckier I get” is really true. In this instance hard work … Continue reading
I spent a lot of 2011 learning about Accessory Dwelling Units (also known as in-law units, granny flats, backyard cottages, etc). Beat that in terms of geekiness! (Okay, I bow … Continue reading
In a post on my personal ADU blog, I described an awesome building incentive that was made available for my ADU from the Energy Trust of Oregon (ETO). My ADU … Continue reading
[update Nov. 2012: the paper, including updated results, is out in Appraisal Journal… click here] This year I’ve been working with appraiser Taylor Watkins of problem of appraising properties with … Continue reading
[Kol Peterson attended Martin Brown and Taylor Watkin’s presentation on appraising ADUs and came away with these notes about how appraisal issues affect homeowners. For Martin’s summary of the event, … Continue reading
(Update January 2013: please note that the research on which the following piece was based has now been published in Appraisal Journal. Please read the full text of that article … Continue reading