ADU/DADU Financing in Seattle

[Michael Smythies]

Hi everyone, 

I wanted to reach out to anyone who may know of lenders who have experience/expertise in lending on new construction DADU's or ADU's. With Seattle's recent re-zoning laws allowing for higher density lots, building DADU's and ADU's have been a hot topic in the area. However, I have yet to come across a lender who has worked on many of these types of loans.

Any and all help is greatly appreciated, thank you BP! 

[Sherief Elbassuoni]

@Michael Smythies, yep, what we typically do is either use cash, or HELOC of another property, or ask hard money lender to refinance the property and finance the DADU. If you are using the preapproved DADU plans, your permit time is way shorter than going through the permitting process from scratch with a new design, then do a few rounds of corrections till you get the final approval.

Same for construction. Some general contractors already built a certain DADU design a few times in the past, so building one more is way easier for them than building a completely new design