Throughout the country (and in some areas more than others) low inventory in the housing market and high rent prices have many home owners adding or considering adding ADUs (which stands for Accessory Dwelling Units). ADUs often called granny flats, are guest houses or rooms added to garages to create rental income for home owners. Home owners typically add ADUs to increase cash flow, as well as looking for their property value to appreciate.
Whether ADUs are right for you, depends on a number of factors. ADUs often costs at least $100,000 to build so being in a high rent market helps to offset the initial investment. You’ll also need to make sure local ordinances allow them and what the regulations are. The old real estate adage about location stays true for ADUs as well. If you are in an area where rents are high or a popular vacation destination, then ADUs can make sense. Again you’ll need to check the local zoning and if you build one you will also need to have updated insurance to cover the ADU. Check with us to learn more and to see what financing terms you qualify for.

A lot of young Americans went to college, studied hard but in addition to getting a diploma, they also graduated with debt. Having loans is not a deal breaker but it will factor into the important debt-to-income (or DTI) ratio, and mortgage underwriters are primarily looking at the numbers so having it be student loan debt isn’t different from a car loan in the math. Strategies to get approved with student loan debt Pay it down – this maybe easier said than done but if you have extra money or got a raise then try to pay down the debt Consolidate it – if you can consolidate your debt and lower your monthly payment (even not the overall loan amount) this will help your monthly DTI ratio Co-sign – this can be a delicate process but its one to consider if you have a trustworthy, reliable family member or friend Programs and Assistance Sometimes a conventional mortgage might not be possible but there are options! FHA, VA, and USDA loans offer a lot more flexibility and lower down payments than traditional mortgages Grants and Programs – there are a number of grants and programs out there from the federal to local level that you may qualify for If you’re interested in qualifying for a loan but worried about your student debt give us a call or apply online and we can see what best fits your needs!