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 accessory 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. An ADU may be added to a 1-3 unit property (conventional financing does not currently allow this for 4 unit properties).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.

Mortgage Rate Update for the week of April 14, 2025

Hello,Here is an overview of what economic indicators may impact the direction of 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

Zillow’s Math – Does Buying a Home Now Make Sense?

Zillow recently published an article titled "If you buy now, it could take 13.5 years to make a profit on your home sale". This article is catching a lot of attention with various media outlets, and I thought I should use my resources to analyze this article.To do my comparison, I tried to use as much of Zillow's information as possible, including the average price of a home in Seattle and average rents, using credit scores between 720-739. If you would like me to provide scenarios for you based on your neighborhood and financial situation, please let me know!On this page, you'll find:My video (above) using Zillow's data with the resources I have available.Total Cost Analysis | Rent vs. Own which includes a short video reviewing the report. Compares renting to buying with 5%, 10% or 20% down payment.Rent vs. Buy Report for Zillow's Seattle home scenario based on a 10% down payment. *Rent vs. Buy Report for Zillow's Seattle home scenario based on a 10% down paymentNOTE: Mortgage rates have DRAMATICALLY IMPROVED since I created this resource guide. Please contact me for current rates!SPOILER ALERT!!! My research shows that it SHOULD NOT take 13 years (or even 10 years) to have a profit on selling a home - even with a 10% down payment! In fact, the Rent vs Buy Report shows that a person could have around a $500K selling their home just after 10 years even factoring in the monthly cashflow difference between renting and owning!Ultimately, buying a home is not for everyone. However, if you qualify for a mortgage and are interested in the appreciation and investment opportunities available with home ownership, I encourage you to check it out. It's also important to keep in mind that when rates trend lower, people who have been sitting on the fence waiting for lower rates will re-enter the market which will increase demand on the limited supply of homes for sale. This pushes rates higher. Higher mortgage rates can actually provide an opportunity to those who are willing to have the mortgage payment until they can refi (which may take a couple of years).I wrapped up my video (above) with a teaser about the All In One Loan, which pays off mortgages far more rapidly than a traditional 30 year (making owning a home even more affordable). You can learn more about this program here:Mortgage rates are subject to change and WILL change. Mortgage rates are based on mortgage-backed securities (bonds) and are similar to bonds. Please contact me for current mortgage rates as the rates you're viewing here (and probably anywhere) are expired.Questions? Considering buying a home? Please contact me - I am happy to help you!

A Solution for Veterans wanting to use a VA Loan

Many Veterans who have served our country have earned the right to have a VA mortgage loan. It’s unfortunate that some sellers as well as real estate agents have a bad image of VA loans and often discourage them. Many years ago, VA loans were sometimes more challenging than conventional financing – this is rarely the case anymore. Some people may falsely assume that if a Veteran is using a VA loan, they must have poor credit or not enough funds for a down payment. A majority of the Veteran’s I have provided mortgages for have excellent credit and plenty of funds for down payment, they opt for the VA loan because they either don’t want to use all of their funds for down payment, or the VA mortgage loan could be providing a lower interest rate than what they would receive with conventional financing. Bottom line, it’s their entitlement that they sacrificed and worked hard to earn. Regardless of how much I rant about why people should be more accepting of VA loans, we still have many who just can’t shake the unfortunate reputation of VA financing from years past. I have a possible solution! If a seller is not accepting offers with VA financing, make a cash offer instead! The Veteran can use a program like our cash-buyer program, and then buy the home back after closing using their earned VA financing! It’s really that simple!When the Veteran uses their VA financing to buy-back the home, they can use the same terms as if they were buying it directly from the seller. Our cash-buyer program closes purchases FAST and the Veteran’s financing to buy-back the home from the program takes place simultaneously. I would love to help more Veteran’s buy homes utilizing their VA entitlement. So if a seller balks at a VA offer or are not accepting VA offers, counter back with a cash offer!Your Real Estate Agent will need to take a 45 minute class to become certified to present an offer using our program. Please feel free to share this page with them. Please check out the additional information that I have on this page, including examples of how the scenario could work for a Veteran.Thank you to our Veterans for their service to our country!

Unlocking the Path to Your Dream Home: Selling and Buying Made Easy

Selling & Buying Made Easy!Ready to sell your home and seamlessly move into your dream home? Look no further! We've got you covered with a simple and affordable process. As an experienced mortgage professional, I understand sellers' challenges when becoming buyers. But fret not! I've designed a unique solution to make your transition smooth and financially stress-free.Here's how it works: First, together with your real estate agent, we will market and sell your home, ensuring you get top dollar. Once your sale is complete, we'll move on to the exciting part: helping you purchase your dream home! (If you need a referral to a real estate agent, please let me know).NOTE: Mortgage rates have changed since creating the Total Cost Scenarios on the right sidebar. Please contact me for current rates based on your financial details.Our secret weapon? The rate buy-down option! We'll negotiate with lenders on your behalf, securing a lower interest rate for your mortgage. This means you'll enjoy reduced monthly payments, making it much more affordable to become a buyer after selling your home. Imagine knowing you can comfortably afford your new home without breaking the bank! With our rate buy-down approach, you can achieve just that.Or, if you're concerned about a bidding war, you can up your game by using NAF Cash to essentially make a cash offer on your next home. NAF Cash buys the home with cash and the after the quick closing, you buy the home NAF Cash.. You can also use NAF Cash to buy your next home BEFORE closing on your current home (similar to a bridge loan). Here is more info: How to Buy Your Home as a Cash Buyer (and Win Bidding Wars)Speaking of refinances, after closing I will continue to monitor interest rates for you to inform you when rates are low enough for a refinance. After closing with New American Funding, we will waive our lender fee should you refinance with us in the next 5 years after closing your purchase.Our goal is to empower you as both a seller and a buyer, providing comprehensive support throughout your real estate journey. We'll handle the complexities, negotiate on your behalf, and customize a solution just for you. Don't let financial worries hold you back from your dream home! Let us make it a reality.Contact us today to learn more about our seamless selling and buying process. Remember, it's not just about selling or buying; it's about navigating the entire journey quickly and affordably. Let us guide you every step of the way! Get ready to embrace your dream home!Best regards,Rhonda Porter

How to Win a Bidding War on Your Next Home

If you tried buying a home over the last few years, you probably lost out to buyers who made cash offers. Sellers tend to prefer cash offers because they can close faster and there are less uncertainties when they are not relying on a mortgage approval from a lender they don’t know. Even in a buyers’ market, a seller will most likely prefer a cash offer over one that is dependent on financing or the sale of another property. I have a solution! You can also enjoy the convenience of an all-cash buyer with a cash buyer program. This works for first time home buyers and for clients who want to buy before they sell their existing property.The process is simple!Get preapproved.Your Real Estate Agent will need to become certified with the cash buyer program (if they’re not already).Find your home!The cash buyer program will place a cash offer on the home which will probably close very quickly.You buy your home back from the cash buyer program using the mortgage you’re preapproved for.This works for first time home buyers and for clients who want to buy a primary residence before they sell their existing property. This is similar to a bridge loan except you don't have a "bridge loan payment" to factor into qualifying for purchasing your home - which makes this easier to qualify for.This is for home buyers with credit scores of 620 or higher and minimum down payments are allowed for conventional and VA financing. (This is currently not allowed with FHA financing). Home buyers will need a minimum 3% earnest money deposit. There is a service fee which can be added to the sales price of the new home when you buy it from the cash buyer program and often times, the fee can be offset by offering less on the home (often cash buyers can pay less than those having to use a mortgage).Cash offer purchases often close in just two weeks, so you’re able to move into your new home before you purchase the home back from cash buyer program. There will be some rent due, just as if you were moving into your home before closing with any other seller. Here is more information about cash buyer programs.NOTE: Mortgage rates change throughout the day (similar as stocks do) and are subject to credit approval. In other words, the rates posted here are expired and may currently be lower or higher. If you would like to see a scenario with current mortgage rates based on your personal financials, please contact me.Let's help you buy your next home!Best regards,Rhonda

How Much Money Do You Need to Buy a Home?

You may be surprised to learn that you don't need 20% down payment to buy a home! There are also grants and down payment assistance programs available to help with closing costs. Check out my video to learn more about how much money it takes to buy a home in today's market. Please contact me if you have any questions. Warm regards, Rhonda Porter Mortgage Consultant MLO121324

Credit Tips for Homebuyers

Sometimes "common sense" actions, like paying off debts and closing your accounts are probably the WRONG things to do if you're considering getting a mortgage. This video includes some suggestions on what you may want to do to improve your credit if you are considering buying a home or getting a refi. Please contact me with any questions - I'm here to help you! Best regards, Rhonda Porter Mortgage Advisor MLO121324