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Your Guide to Accessory Dwelling Units (aka ADUs or DADUs)

Have you been considering an "in-law" apartment or backyard cottage? This type of dwelling is technically referred to an accessory dwelling unit aka "attached dwelling unit" (ADU) or detached dwelling unit (DADU).An ADU is a smaller living space on the same lot as a single-family home. It must be a habitable living unit including space for sleeping, cooking and a bathroom with it's own entrance (independent of the primary residence). An ADU could be an apartment over the garage; in the basement of the primary residence; a detached home in the back yard; or even a manufactured home.Recent changes to zoning laws in Washington state allows more homes to have an ADU. In many areas, regulations for ADUs have been eased to help promote the addition of accessory dwelling units in the spirt of creating more affordable housing.Adding an ADU to your home can provide a lot of options, including increase value by adding more living space. An ADU also provides additional space for when family or friends come to visit; or if you need housing for a parent or adult children. They can also provide additional income as an investment property or short-term-rental. Rental income may be factored for qualifying purposes.There are several options available for financing an ADU/DADU, including:Conventional Home RenovationFHAFHA 203(K)VAOne-Time Close Construction LoanHome equity lines of credit or fixed rate second mortgages.Reverse MortgageFinancing is available for purchases or refinances.Different down payment (home equity) requirements are based on the occupancy (primary, second home or investment property). Some programs, like FHA, have minimum down payment options.The property must meet zoning requirements. Some cities actually have pre-approved DADU plans to help make the permit process more efficient, including:SeattleRentonKirklandLaceyHere are guides from other cities information regarding ADUs:BellevueBremertonEverettKentLynnwoodPoulsboSpokaneTacomaVancouverIf you are considering adding an ADU/DADU to your home or finding a new home with the potential to add an apartment, please reach out to me! I am happy to review possible options with you.

2024 Mortgage and Housing Forecast

Spoiler Alert! Many experts, including economist from Fannie Mae and Mortgage Bankers Association are predicting that mortgage rates will be below 6% by the end of 2024 thanks to inflation cooling off.We will also still be dealing with a serious lack of inventory. The markets should be improved from 2023, however the competition will remain strong and most likely increase. As mortgage rates move under 6%, we will see more people re-enter the market. In addition, it is in my opinion highly unlikely we'll see a "price correction" with homes in our area simply due to the continued lack of inventory and increased population (more on that in my video above).For the scenarios I have prepared here, I'm using a home priced at $800,000 with 20% down payment. Rates are subject to change and are for example only. Results may vary depending on where you are considering buying and what your financial scenario looks like. Forecasted interest rates are based on projections from Fannie Mae's January 2024 forecast and are NOT guaranteed - they are only a projection. If you would like me to prepare scenarios based on your personal data or for your client, please reach out to me! I'm happy to help.Here are some strategies to help you in 2024!Don't wait for lower rates to buy! If you find a home that you can afford and would like to make an offer on, do it now before rates go down. Check out the Cost of Waiting - Total Cost Analysis and PDF with examples overtime. ⏩You will have less competition.You will start paying down the mortgage now and enjoying appreciation now.The home will cost more with appreciation (and potential bidding war) when rates are lower.Be prepared to Offer Above the List Price. Bid above the list price and negotiate the seller to buy down your interest rate. With forecasted appreciation, you may be surprised how quickly one may break-even on the "cost" of bidding over the list price vs. chasing a higher sales price while waiting for interest rates to come down. ⏩Make your best presentation with a Digital Offer. I personally contact the listing agent to review your offer (with your permission, of course). The listing agent will receive a text with your digital preapproval for their review as well as an email. ⏩Consider making a cash offer with NAF Cash Program. We have a cash buyer program that allows you to have a cash offer presented on your behalf. Sellers prefer cash offers as there are no financing contingencies, and you can close much faster! Once the cash offer has closed, you buy the home back from NAF Cash with the same terms. This also works great if you have a home that you need to sell before buying your next home. ⏩If you do have a home to sell, you probably have enjoyed appreciation with your home values. These funds (or other funds that you may have considered to use for down payment) may be used to restructure debt or buy down the interest rate to make your payments more affordable. Check out Selling and Buying Made Easy. ⏩Rent vs. Buy. Your mortgage payment may be initially higher than your rent payment, however the long-term benefits of building wealth through homeownership is very clear with this report. ⏩5 Year Rate Pledge. After you close your mortgage serviced by New American Funding, should mortgage rates drop to where you want to refinance, New American Funding will waive their lender fees. ⏩If you would like to prepare a plan for buying your next home or create a strategy to help your home buyers, please reach out to me.I hope you have a wonderful 2024!Best regards,Rhonda

Mortgage Market Update for the week of May 13, 2024

Here is an overview of what economic indicators may impact mortgage rates this week.If you would like to see current mortgage rates based on your personal financial scenario, please contact me!Best regards,Rhonda Porter, Mortgage Advisor

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1910 Redmond Ave NE

Offers being reviewed Wednesday, May 8, 2024. 2.5% Buyer Agent Compensation. This home located in desirable Renton Highlands will shine with some TLC. We have several programs available that will help renovate this home located on a 1/3 acre lot. Conventional Renovation Loan: Maximum loan to value is 97% for owner occupied; 90% for second homes and 85% for investment property-purchase or 75% if the investment property is a refinance. Conforming loan limits: $977,500 for King, Pierce and Snohomish County (single family dwelling). NOTE: JUMBO Renovation Loans are available too! 2-4 unit homes available (different loan to values apply) for owner occupied, primary residences only. 1 unit investment property allowed with max LTV of 85%. ADU/DADU's are permitted for owner occupied, primary residences. Licensed contractors and/or subcontractors must be used where licensing is required per state or local regulations for the specific trade or type of renovation that is being completed. Often used for remodel projects and luxury items may be included. Cannot be used for a complete teardown however, One-Time-Close can facilitate this. Allows access to upfront equity based on the after improved value of the home. If repairs/improvements exceed $50,000, then a feasibility study is required. One-Time-Close Construction Loan: This is a true construction loan that would for a new build of a primary residence from the lot up. A person can already own the land or this can be combined with purchasing the land. Conforming/FHA loan limits: $977,500 for King, Pierce and Snohomish County. VA Loans available. (Jumbo program also available). Eligible property types include 1-unit site-built homes, modular, multi-wide manufactured homes, pre-hab. ADU/DADU permitted WHEN it's part of a 1-unit site-built home. Primary residences and second homes (conventional financing). Builder must be approved with New American Funding. Interest-only payments during construction phase (up to 12 months) which then modifies to a 30-year fixed mortgage. NOTE: FHA 203(K), VA Renovation Loans and Jumbo One-Time Close loans are also available Interested in learning more about financing your dream home? Please contact Rhonda Porter.

1214 Taylor Ave N Apt 101

Rare 3 bedroom 1-1/2 bath Queen Anne condo close to Shopping, Seattle Center, and South Lake Union. Easy access to bus lines. Corner unit with views of downtown from deck. Large open floor plan with lots of light. Living room wood fireplace and built-in bookcases. Newer flooring and recently updated kitchen and bathroom. Includes 2 assigned off-street car parking spaces and two storage unit located on the basement level. No rental cap! ⏩⏩Be sure to check out the possible financing options including scenarios for primary residence and investment property. Mortgage rates are based on bonds (mortgage-backed securities) and subject to change. The rates posted are expired. Please contact Rhonda Porter for current rates based on your financial scenario. Click here to schedule an appointment to start your preapproval for this (or any) fine home!

Lot 3 at Henderson Park

Henderson Park by Sager Family Homes is a cul-de-sac community offering easy access to schools, shopping and JBLM. Our Lake Tapps plan offers 1,309 square feet with an open concept floor plan. The kitchen opens to dining and great room. Primary bedroom with primary en-suite bath, 2 additional spacious bedrooms and full bath. Separate laundry and 2-car garage. Sager Family Homes is offering seller incentives of up to $15,000 towards closing costs, prepaids and buydowns with preferred lenders. ............................................................... Are you ready to get started? Your next steps: Complete your Loan Application: After your loan application is reviewed, we will provide you with a detailed list of the supporting documents needed to issue your preapproval. Submit an offer for your new home built by Sager Family Homes. Be sure to check out the Possible Financing Scenarios video which illustrates how the $15,000 Seller incentives can be utilized. Please note: mortgage rates change constantly throughout the day (similar as stocks); the rates shown are not "live" in the scenarios and are for an example only. I am happy to provide you with current rates based on your personal financial scenario. Buy your dream home now and refinance your rate later! We have a 5 Year Rate Protection Pledge to refinance your loan within 5 years after closing without repeat lender fees.


"Communication was exemplary! She went above and beyond to help make sure this was a successful transaction for all parties involved. Looking forward to many more transactions with Rhonda!"

deanna f

"Process was very smooth and very informative throughout, which I appreciate greatly as I had a ton of questions!"

vincent r

"To begin, we were moving across country with short notice and the seller required a 30-day closing. I haven’t experienced getting a mortgage in over 30-years…OMG it’s changed a lot! I am not even exaggerating when I say that we would not have accomplished this without the exceptional experience that Rhonda brought! After we signed and locked the 2023 high interest rate, days later there was a significant dip in the rates and Rhonda relocked us at the lower rate! What an unexpected gift. I don’t know anyone else who would go out of their way to do that for a client. Not only is she a Pro, but she’s a joy to work with and also guided us through with lots of patience. 5-STARS all the way!"

mark fernandez