Financing A Backyard Home

Financing your new Backyard Home can be accomplished a number of ways.

The first is a conventional construction loan, while not as easy to get as in the past they are still available.

The second and most widely accepted route is refinancing your current home and pulling out money for the construction, this seems to work best since you are increasing the value of your home with the new Backyard Home.

Another option is a line of credit on your existing home or another property. This route is tougher than it used to be, but if you have excellent credit and a steady job you have a good chance of getting the money you need.

The best way is good old cash, if you have the savings available the return on your dollar from the increased value from the construction is something that you may want to consider.

There are certainly other creative ways to finance your project, but these are the main ones that our clients have used. Happy financing!

Backyard home TIPS

Planning on putting a backyard home on your property? Here are some helpful tips to make the process go smoothly.

Know your local code! Many cities and Counties have zoning code written specifically for Secondary Living Units also known as Accessory Living/Dwelling Units. A quick search of the cities zoning code will let you know if your property qualifies for one of these units.

Find out what your lot is zoned! For the most part, lots that are zoned Residential can have a Secondary living unit if they meet other requirements of the municipality.

What size is your parcel? Many cities have restrictions on lot sizes. If your lot is below their minimum size you may not be able to build a Secondary Living Unit on your property. If you are below the minimum requirements there are other options to the Secondary Living Unit, which will give you the additional space you need on your property.