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Accessory Dwelling Units Provide Flexible Solutions
June 19, 2015 — 2 min read
Accessory Dwelling Units and Mortgage
Accessory Dwelling Units (ADUs), also referred to as accessory apartments, mother-in-law suites or basement and above garage apartments, are additional living quarters with a kitchen and bath, on single-family lots, independent of the primary home. First adopted after World War II to fulfill the housing shortage, the popularity of ADUs is on the rise again. As the rental market heats up, ADUs offer homeowners flexible options throughout their lives, while creating potential income. Many municipalities have embraced them, even waiving initial permitting fees as a way to encourage homeowners to take advantage of increasing living space, or creating a rental unit on their existing property.
Homeowners historically financed ADUs with lines of credit or cash. Now many financing options now exist for different ADU construction scenarios, including:
- Purchasing a new home or refinancing an existing home and building an ADU
- Constructing and financing a new home with an ADU
- Using existing home equity to build an ADU
If you are interested in financing options for building an ADU or refinancing a property with an existing ADU, contact us today!
*ADU image taken during "Portland's 2nd Annual Accessory Dwelling Unit Tour" May 2015.
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