CONSTRUCTION FINANCING 101
Unlike an existing home or manufactured home purchase, there are actually two loans involved building a stick-built home:
1. a short term construction loan (usually 9 to 12 month)
2. the permanent 30 year mortgage
If you’ve never used a construction loan before, you might find the construction loan to be somewhat confusing. This article is to help you understand some differences between a construction loan and a home mortgage.
A “STORY” LOAN
Construction loans are considered to be ‘story’ loans. What this means is that you are in essence purchasing an idea, or concept. Since the object that the lender is investing their money on is not tangible (i.e. it doesn’t exist yet) they must know the ‘story’ behind your concept before they'll be willing to loan you money to make it a reality. The story must make financial sense to them to be willing to loan you the money. So your job (and ours) will be to make the story interesting to the bank.
One of the things that makes the loan make sense to the lender is the high equity of a brand new stick built home. Because the True Built Home building process saves you as the home owner a lot of money, once the house is done, you will typically move into the home with instant equity. This makes the loan make sense to the bank since they know that they can easily recoup their investment no matter what happens.
FINANCING STICK BUILT VS MANUFACTURED HOMES
At this point, it’s worth pointing out one major advantage to building a stick built home over purchasing a manufactured or mobile home: financing is much easier on a stick built home, because the story makes more sense then lending on a manufactured home. In fact, because mobile and manufactured homes do not accumulate the amount of equity that you will find in a stick built home, banks are growing increasingly hesitant to finance them at all and when they do the terms are often not nearly as desirable as a stick-built home. The reason is that, if you default on the loan, the bank has less of a chance of reselling a mobile or manufactured home as they would a stick built home. So the story of a stick-built home makes more sense than the story of a manufactured home.
HOW CONSTRUCTION LOANS WORK
A construction loan is basically like a line of credit. Like a credit card, you are approved to spend up to a certain amount of money to build your new home. Construction loans typically require interest-only payments during construction and become due upon completion (meaning that the house has received its certificate of occupancy). The balance due is then rolled over or ‘converted’ into a typical 30 year mortgage.
Construction loans usually have a higher interest rate than the permanent loan will have-often as much as 7-9%. However, the payments will be lower because you are paying interest only and only on whatever amount you have actually charged against the loan.
At the start of construction, your initial payments on the construction loan will likely be low-just he interest payment on the cost of the land. As you begin work to develop the land, such as excavation, utilities, and other site improvements, you take draws against your loan and your balance begins to grow. Then once construction starts, the home builder takes draws against the loan for materials and labor to build the home. As you continue to take out draws against your ‘credit line’ your payments will increase until you reach the end of construction.
It is possible but not desirable to have a construction loan independent of the final permanent 30 year loan. It is much safer for you to have a combined construction to permanent loan. With this type of loan, once the house receives Certificate of Occupancy, the construction loan is automatically converted to a permanent mortgage loan. The advantage of this is that you only have to have one application and one closing, so you only pay closings costs once. This is known as a ‘one step’ construction loan.
If you thought home ownership was out of reach or you needed a large amount of money to buy a home, think again.
Monday, March 22, 2010
Tuesday, February 16, 2010
What Our Clients Are Saying . . . .
Lewis, I want to thank you for all the extras you have done for me, the latest being my pump house. You have been so kind and honest with me and I really appreciate it. With all the things that have happened to me, you and your team have been a bright and safe light. I want to thank you again for your honesty, integrity, and your designs. Bless you, Lewis.
Sincerely,
Janet and Adam Senn
"Dear True Built Home, I ordered plans from True Built Home for my home in North Idaho, which was out of their territory. They had a plan I loved, and I asked if they could engineer it for our area, make some changes for me, and meet our code. What I was asking was not the usual thing for them, but they were exceptional in their response. It was approximately two weeks from the time I made the initial request, with final changes, until the plans were mailed to me. They communicated with me regarding suggestions they had for me, which were very appropriate and helpful. The end result is better than I originally intended, and I could not be happier. Donna Collier, Manager Valencia Wetland Management Corp. P.O. Box 1449 Priest River, ID 83856"
From: Donna Collier of Priest River, ID on November 02, 2009
"I am a vendor for True Built Home and can truly say that the attention that they give to not only their vendors, but even more so their customers, is impressive! I have over two hundred builders/customers on the books that we do work for, and the professional and dignified manner that they deal with Bear Plumbing is very refreshing and unique . It is really a pleasure to work with not only the office, but likewise the guys in the field. To put it in other words-True Built Home would be in the top list of general contractors that I would use for my own property or recommend to familly and friends."
From: Jeremy Gatchell of Tacoma, WA on October 07, 2009
"We have worked with True Built Home for a few years and have found their team to be one of the best organized and on time builders we work with. Their projects always have the extra touch with outstanding business ethics. Thanks Guys!"
From: A/C Electrical, Inc. of Spanaway, WA on October 07, 2009
"True Built Home provided me with a level of service that exceeded my expectations. Building your own home can be very stressful which is why you need a builder with knowledge and a compassionate nature. If you are looking for quality service, you should take a closer look at this company."
From: Michele B of Tacoma, WA on October 07, 2009
"A true built home is built at a great price and most importantly with good material, and excellent quality, true built does not charge the extra $ that other competitors do for the smallest things, true built is an organized company with lots of knowledge in building your home the way you want it to be built, and not whats the cheapest. definatliy give them a try you wont regret it. (five thumbs up for true built )"
From: Nick Luzhnykh of Puyallup, WA on October 07, 2009
"As a subcontractor for True Built Homes, I could'nt be more happy to be working with this company. They have always paid on time and have been great to me. Very easy to communicate with on every level."
From: J&A Concepts, Inc. of Olympia, WA on October 07, 2009
"As a Sub-Contractor for True Built Home we have noticed their commitment to quality and the fact that their jobs are well organized. They have always treated us fairly and have always paid on time which in this economy is very important. I would definitely recommend True Built Home to anyone that wants a well built affordable home. They will enjoy the experience."
From: Eric Wood De-El Enterprises Inc. of Tacoma, WA on October 06, 2009
"My wife and I have a beautiful house thanks to Lewis and True Built Homes. He was hands-on, answering our questions, giving us great value for the money, and in the process became a friend that we care about. We receive compliments about our home all the time, and it was a fantastic, affordable, and enjoyable experience."
From: Mark Bohlman of Tacoma, WA on October 06, 2009
"True Built Homes is great to work for as a subcontractor. They always pay on time and during this tough economic time, that is very important. They are also keeping us quite busy when other companies are slowing down."
From: C.A. Simpson Construction, LLC of Olympia, WA on October 04, 2009
"I was very impressed with the company True Built Home, they do a very professional job. I will come back again. - Joe Smith Jr. owner, Evergreen Painting"
From: Evergreen Painting of Bremerton, WA on October 01, 2009
"Permits obtained and ready to dig out for foundation next week. I have found True Built to be a good value and working with Lewis, John, Dave and Eddie have given me what I needed as they have been willing to be flexable with changes. I am looking forward to seeing the house begin then I will have more to share."
From: John Glass of Gig Harbor, WA on September 25, 2009
"The best web site out there! the $38 a sq ft page is very informative.. I learned a lot by reading this information.. it explained in great detail how a company can build so cheap! I've looked into every project they've done! so far the company has a 100 percent customer satisfaction track record. they answer all questions and are very prompt!"
From: JD of Tacoma, WA on June 02, 2009
"I am happy to say that I have had nothing but good things to say about True Built Home. They have gone well beyond the call of duty to assist me with my project and i havent even purchased a home yet. The Customer service that is provided there is refreshing to say the least. When I am prepared to build my home there is no question it will be with True Built. I would reccomend them to anyone who is thinking about building thier own home. Thumbs up to a great company!"
From: Justin Wells of Graham, WA on January 05, 2009
"True Built Home thank you for rocking out and changing my life in the process. Time nor space does not allow me to share how truly greatful and blessed for having chose You and having You chose or accept doing the work for me. Your professionalism and insight is tried, true and trusted. This was our first experiece having a home built. And with much reservation, though the I had the desire to do so, Tru Built Home Owner and staff, by remaining professional, personalized my experience by standing by me and their final product throughout the entire process through current. What now seem unpreventable stress that I endured during the project seem now unnecessary, but this too, Tru Built saw me through. Thanks to all of you for a job done that I am able to celebrate. Though thank you seem not enough. Thank you for putting up w/me. Continued success folks.I tried to enter 4.5 stars but the software did not allow doing so. Lol...the half (star)is reserved for continued success. GOD bless!"
From: JRumph/KBrown of Tacoma, WA on October 08, 2009
"Love your floor plans and you have the best website. Wish you built in Oregon."
From: Kathy Barber on January 08, 2010
"Troy asked that I post something here as a candid review. My assessment would be that they do exactly as they say they will. The subcontractors are courteous and professional. I can't say more about the design of our home which we created from scratch. Troy gave us many insightful recommendations that we incorporated even though it cost us a little more. I know how tough things are for contractors right now and I am wholly impressed with the job they have done within our budget. The only con may be that they seem a little busy and sometimes take about a day to get back to us by phone but I can usually get a quick e-mail response when needed. They did send us status reports and have some kind of internet page to view reports as well but I never spent the time to check it out. Kudos to Troy and TNT"
From: Rick P of Bremerton, WA on November 11, 2009
Watching a True Built Home going up in Port Orchard
"I am currently not having Lewis build a house for me, but he is building one for a friend of mine. Both True Built Home and all of the subcontractors have been extremely friendly as well as completely professional. I have witnessed every stage of the house build and am very impressed with the craftsmanship and quality of the home. Also, the time frame for this build has been exceptional even with the weather delays of late. I would highly recommend one of True Built homes to anyone considering having a house built."
-- Blake Bertrand, Port Orchard
February 13, 2009 by True Built Home in Manchester, WA
New Home in Port Orchard
"We are currently in the beginning stages of having our home built by True Built Homes. From the start, even from the very first conversation with TBH, they have been fantastic. We shopped around, spoke with, and visited with all the different homebuilders in the area and after doing a lot of research we decided that TBH was the best choice. Unlike their competitors TBH answered all of our questions honestly, without any deception, and were not motivated by just trying to make a sale. This company is all about making a top quality home and also making sure that the customer is completely satisfied with it. They have been extremely helpful from step one of the building process and amazing throughout, excellent communication, and A+ professionalism. We anticipate leaving an additional positive comment as we proceed….this is truly a very “successful story.” We definitely highly recommend True Built Homes!!"
-- Jerry & Denise Denney, Port Orchard
February 13, 2009 by True Built Home in Manchester, WA
"I am very impressed with True Built Home. They have been very patient with us as we take the steps to have them build a house for us. They have been able to answer all my questions and have kept in constant communication with us. Sheldon and the others at CBay have made our filling for permit process run smooth. They also did a great job with our plot (site) plan I was very happy how they kept constant communication as well. I look forward to getting our building permits and updating my success story! I have already recommended TBH and CBAY Services to people as I am truely impressed with their customer service and knowledge."
-- Starleen Miller, Lakebay
February 13, 2009 by True Built Home in Manchester, WA
True Built Home Marketing
"Good Morning, You certainly put together a very well laid out and very Marketable Monthly Web Letter! I like the fact that your Company seems to really value responsiveness, flexibility, ingenuity, and yet still maintain the Focal Quality without comparison Strategy. I sincerely Hope that Business is well with you and your Company. I look forward to meeting with you again soon. Have a Great Day!"
-- M.S Kitsap
February 13, 2009 by True Built Home in Manchester, WA
"Dear John, Lewis and Dave,
A note full of gratitude and appreciation for all of your thoroughness, honesty, and constant patience with the start of our home building process. We can't say enough about how approachable and helpful you all are and have been. We look forward to you getting to see the finished product and getting to enjoy the beauty of our coast!
Best Regards, A.J. Caroline and Elaina Sieghman
Sincerely,
Janet and Adam Senn
"Dear True Built Home, I ordered plans from True Built Home for my home in North Idaho, which was out of their territory. They had a plan I loved, and I asked if they could engineer it for our area, make some changes for me, and meet our code. What I was asking was not the usual thing for them, but they were exceptional in their response. It was approximately two weeks from the time I made the initial request, with final changes, until the plans were mailed to me. They communicated with me regarding suggestions they had for me, which were very appropriate and helpful. The end result is better than I originally intended, and I could not be happier. Donna Collier, Manager Valencia Wetland Management Corp. P.O. Box 1449 Priest River, ID 83856"
From: Donna Collier of Priest River, ID on November 02, 2009
"I am a vendor for True Built Home and can truly say that the attention that they give to not only their vendors, but even more so their customers, is impressive! I have over two hundred builders/customers on the books that we do work for, and the professional and dignified manner that they deal with Bear Plumbing is very refreshing and unique . It is really a pleasure to work with not only the office, but likewise the guys in the field. To put it in other words-True Built Home would be in the top list of general contractors that I would use for my own property or recommend to familly and friends."
From: Jeremy Gatchell of Tacoma, WA on October 07, 2009
"We have worked with True Built Home for a few years and have found their team to be one of the best organized and on time builders we work with. Their projects always have the extra touch with outstanding business ethics. Thanks Guys!"
From: A/C Electrical, Inc. of Spanaway, WA on October 07, 2009
"True Built Home provided me with a level of service that exceeded my expectations. Building your own home can be very stressful which is why you need a builder with knowledge and a compassionate nature. If you are looking for quality service, you should take a closer look at this company."
From: Michele B of Tacoma, WA on October 07, 2009
"A true built home is built at a great price and most importantly with good material, and excellent quality, true built does not charge the extra $ that other competitors do for the smallest things, true built is an organized company with lots of knowledge in building your home the way you want it to be built, and not whats the cheapest. definatliy give them a try you wont regret it. (five thumbs up for true built )"
From: Nick Luzhnykh of Puyallup, WA on October 07, 2009
"As a subcontractor for True Built Homes, I could'nt be more happy to be working with this company. They have always paid on time and have been great to me. Very easy to communicate with on every level."
From: J&A Concepts, Inc. of Olympia, WA on October 07, 2009
"As a Sub-Contractor for True Built Home we have noticed their commitment to quality and the fact that their jobs are well organized. They have always treated us fairly and have always paid on time which in this economy is very important. I would definitely recommend True Built Home to anyone that wants a well built affordable home. They will enjoy the experience."
From: Eric Wood De-El Enterprises Inc. of Tacoma, WA on October 06, 2009
"My wife and I have a beautiful house thanks to Lewis and True Built Homes. He was hands-on, answering our questions, giving us great value for the money, and in the process became a friend that we care about. We receive compliments about our home all the time, and it was a fantastic, affordable, and enjoyable experience."
From: Mark Bohlman of Tacoma, WA on October 06, 2009
"True Built Homes is great to work for as a subcontractor. They always pay on time and during this tough economic time, that is very important. They are also keeping us quite busy when other companies are slowing down."
From: C.A. Simpson Construction, LLC of Olympia, WA on October 04, 2009
"I was very impressed with the company True Built Home, they do a very professional job. I will come back again. - Joe Smith Jr. owner, Evergreen Painting"
From: Evergreen Painting of Bremerton, WA on October 01, 2009
"Permits obtained and ready to dig out for foundation next week. I have found True Built to be a good value and working with Lewis, John, Dave and Eddie have given me what I needed as they have been willing to be flexable with changes. I am looking forward to seeing the house begin then I will have more to share."
From: John Glass of Gig Harbor, WA on September 25, 2009
"The best web site out there! the $38 a sq ft page is very informative.. I learned a lot by reading this information.. it explained in great detail how a company can build so cheap! I've looked into every project they've done! so far the company has a 100 percent customer satisfaction track record. they answer all questions and are very prompt!"
From: JD of Tacoma, WA on June 02, 2009
"I am happy to say that I have had nothing but good things to say about True Built Home. They have gone well beyond the call of duty to assist me with my project and i havent even purchased a home yet. The Customer service that is provided there is refreshing to say the least. When I am prepared to build my home there is no question it will be with True Built. I would reccomend them to anyone who is thinking about building thier own home. Thumbs up to a great company!"
From: Justin Wells of Graham, WA on January 05, 2009
"True Built Home thank you for rocking out and changing my life in the process. Time nor space does not allow me to share how truly greatful and blessed for having chose You and having You chose or accept doing the work for me. Your professionalism and insight is tried, true and trusted. This was our first experiece having a home built. And with much reservation, though the I had the desire to do so, Tru Built Home Owner and staff, by remaining professional, personalized my experience by standing by me and their final product throughout the entire process through current. What now seem unpreventable stress that I endured during the project seem now unnecessary, but this too, Tru Built saw me through. Thanks to all of you for a job done that I am able to celebrate. Though thank you seem not enough. Thank you for putting up w/me. Continued success folks.I tried to enter 4.5 stars but the software did not allow doing so. Lol...the half (star)is reserved for continued success. GOD bless!"
From: JRumph/KBrown of Tacoma, WA on October 08, 2009
"Love your floor plans and you have the best website. Wish you built in Oregon."
From: Kathy Barber on January 08, 2010
"Troy asked that I post something here as a candid review. My assessment would be that they do exactly as they say they will. The subcontractors are courteous and professional. I can't say more about the design of our home which we created from scratch. Troy gave us many insightful recommendations that we incorporated even though it cost us a little more. I know how tough things are for contractors right now and I am wholly impressed with the job they have done within our budget. The only con may be that they seem a little busy and sometimes take about a day to get back to us by phone but I can usually get a quick e-mail response when needed. They did send us status reports and have some kind of internet page to view reports as well but I never spent the time to check it out. Kudos to Troy and TNT"
From: Rick P of Bremerton, WA on November 11, 2009
Watching a True Built Home going up in Port Orchard
"I am currently not having Lewis build a house for me, but he is building one for a friend of mine. Both True Built Home and all of the subcontractors have been extremely friendly as well as completely professional. I have witnessed every stage of the house build and am very impressed with the craftsmanship and quality of the home. Also, the time frame for this build has been exceptional even with the weather delays of late. I would highly recommend one of True Built homes to anyone considering having a house built."
-- Blake Bertrand, Port Orchard
February 13, 2009 by True Built Home in Manchester, WA
New Home in Port Orchard
"We are currently in the beginning stages of having our home built by True Built Homes. From the start, even from the very first conversation with TBH, they have been fantastic. We shopped around, spoke with, and visited with all the different homebuilders in the area and after doing a lot of research we decided that TBH was the best choice. Unlike their competitors TBH answered all of our questions honestly, without any deception, and were not motivated by just trying to make a sale. This company is all about making a top quality home and also making sure that the customer is completely satisfied with it. They have been extremely helpful from step one of the building process and amazing throughout, excellent communication, and A+ professionalism. We anticipate leaving an additional positive comment as we proceed….this is truly a very “successful story.” We definitely highly recommend True Built Homes!!"
-- Jerry & Denise Denney, Port Orchard
February 13, 2009 by True Built Home in Manchester, WA
"I am very impressed with True Built Home. They have been very patient with us as we take the steps to have them build a house for us. They have been able to answer all my questions and have kept in constant communication with us. Sheldon and the others at CBay have made our filling for permit process run smooth. They also did a great job with our plot (site) plan I was very happy how they kept constant communication as well. I look forward to getting our building permits and updating my success story! I have already recommended TBH and CBAY Services to people as I am truely impressed with their customer service and knowledge."
-- Starleen Miller, Lakebay
February 13, 2009 by True Built Home in Manchester, WA
True Built Home Marketing
"Good Morning, You certainly put together a very well laid out and very Marketable Monthly Web Letter! I like the fact that your Company seems to really value responsiveness, flexibility, ingenuity, and yet still maintain the Focal Quality without comparison Strategy. I sincerely Hope that Business is well with you and your Company. I look forward to meeting with you again soon. Have a Great Day!"
-- M.S Kitsap
February 13, 2009 by True Built Home in Manchester, WA
"Dear John, Lewis and Dave,
A note full of gratitude and appreciation for all of your thoroughness, honesty, and constant patience with the start of our home building process. We can't say enough about how approachable and helpful you all are and have been. We look forward to you getting to see the finished product and getting to enjoy the beauty of our coast!
Best Regards, A.J. Caroline and Elaina Sieghman
Monday, January 18, 2010
What is an ADU?
HISTORY OF THE ADU
In the 1940s and '50s, many American families rented out an extra apartment over their garages or in the basement of their homes as a way to earn some extra income to help with the mortgage payment or with other household expenses. In fact, backyard cottages and attic and basement apartments were a common feature in many communities across the country. Since then, as more communities have adopted restrictive residential zoning regulations, such
apartments, technically known as accessory dwelling units (ADUs), have been either severely limited or banned altogether, usually in the name of protecting single-family neighborhoods.
Recently, however, perceptions and attitudes toward accessory dwelling units are once again beginning to change. Much of this transformation can be attributed to the effects of the affordable housing crisis as well as the growing numbers of smaller households. In addition, new growth management laws are requiring many communities to plan for and accommodate higher housing densities.
Against this backdrop, many communities in Washington have begun to reexamine the appropriateness of zoning regulations that severely limit or prohibit accessory dwelling units. Accessory dwelling units have emerged as an important component of the affordable housing strategies being carried out in many Washington cities. For cities over 20,000 in population, the Washington State Legislature has now mandated that accessory dwelling units be encouraged and allowed in single-family zones. As a result, many Washington State home builders are being inundated with requests for ADU floor plans that are attractive, and yet affordable housing.
WHAT IS AN ADU?
An Accessory Dwelling Unit (abbreviated ADU) is a secondary living unit built on a parcel of land with another primary home, with its own kitchen, bathroom and sleeping facilities. ADUs are typically smaller than the primary dwelling-most jurisdictions limit them to between 800 and 1250 square feet of living space. This varies by jurisdiction of both cities and counties.
ADUs have also been referred to as "mother-in-law apartments", "accessory apartments", "garage apartments", “rental units” or "second units" depending on their design and purpose.
Subject to local regulations, ADUs may be located either inside, attached to, or detached from the primary home on your property. To be considered attached, living space of both the primary and accessory dwelling units must abut (be on opposite sides of the same wall). Incidental and accessory features such as trellises, decks, patios, breezeways, garages or tool sheds do not generally establish an attached structure.
There are a variety of standards which may be applied in the case of an ADU. These might include limiting the overall number of residents in both units, limitation with respect to home occupations, the location of entrance doors and size of the ADU. Where an ADU is created in a new or existing detached structure or by the addition to a house, there are additional standards regulating the exterior appearance and materials of the ADU. These additional standards include provisions for the height, roof pitch, trim, eaves and windows. Your local building department can provide additional guidelines that should be followed.
WHO CAN BENEFIT FROM AN ADU?
Many municipalities now encourage homeowners to build Accessory Dwellings on properties with single family homes. There are many restrictions that apply, however; there is a reasonable amount of flexibility that allows most homeowners to add ADUs on their property. Also, in many cases, the homes do not have to be owner occupied.
ADUs provide a surprising number of benefits to communities, homeowners and renters.
• Financial Benefit to Tenant: ADUs can be rented for reasonable rents since construction costs are less than conventional homes. Also, ADUs offer housing opportunities in more desirable single-family neighborhoods for some that might not be otherwise be able to afford to live there. Living in an ADU would give these households the opportunity to enjoy the amenities typically found in many single-family neighborhoods, including more privacy, a quieter environment, and less traffic congestion.
• Financial Benefit to Homeowner: ADUs can provide homeowners with extra income to help meet rising home ownership costs. ADUs can provide many homeowners with needed additional income to meet high mortgage and maintenance costs. This can help young families or single parents, as well as additional income for elderly homeowners who are living on fixed incomes.
• Assisting Family Members: Another advantage of an ADU is for providing needed housing for family members. Some parents will provide and ADU for young adult family members and young couples who are just getting started. Elderly family members can avoid both the emotional and financial costs of having to move into a nursing home. Another possible option to assist the elderly is for the elderly homeowner to build and move into the ADU and rent out the main house to relatives or the public. This scenario allows the elderly homeowners to live their lives out on their property without the expense and maintenance of the larger home.
• Increased Property Value: The addition of an ADU can increase the current and resale value of the property significantly above the initial cost of the ADU. A secondary rental unit or "guest house" can be very attractive to potential buyers. Also, if financed through a mortgage on the property, the interest payments and some of the closing costs are usually tax deductible.
• Tax Benefits: Homeowners can apply a portion of the rental income to maintaining their property. So, ADUs can encourage better upkeep of existing housing.
Allowing the development of accessory dwelling units, or ADUs, in single-family homes is becoming an increasingly popular technique for creating low- and moderate-income housing for both homeowners and renters. Homeowners benefit from the additional rental income that they can use to pay part of their mortgage payment or to help with the upkeep on their homes. Renters benefit from the availability of moderately priced rental housing in single-family neighborhoods. The community benefits from the addition of affordable housing for little or no public expense.
In the 1940s and '50s, many American families rented out an extra apartment over their garages or in the basement of their homes as a way to earn some extra income to help with the mortgage payment or with other household expenses. In fact, backyard cottages and attic and basement apartments were a common feature in many communities across the country. Since then, as more communities have adopted restrictive residential zoning regulations, such
apartments, technically known as accessory dwelling units (ADUs), have been either severely limited or banned altogether, usually in the name of protecting single-family neighborhoods.Recently, however, perceptions and attitudes toward accessory dwelling units are once again beginning to change. Much of this transformation can be attributed to the effects of the affordable housing crisis as well as the growing numbers of smaller households. In addition, new growth management laws are requiring many communities to plan for and accommodate higher housing densities.
Against this backdrop, many communities in Washington have begun to reexamine the appropriateness of zoning regulations that severely limit or prohibit accessory dwelling units. Accessory dwelling units have emerged as an important component of the affordable housing strategies being carried out in many Washington cities. For cities over 20,000 in population, the Washington State Legislature has now mandated that accessory dwelling units be encouraged and allowed in single-family zones. As a result, many Washington State home builders are being inundated with requests for ADU floor plans that are attractive, and yet affordable housing.
WHAT IS AN ADU?
An Accessory Dwelling Unit (abbreviated ADU) is a secondary living unit built on a parcel of land with another primary home, with its own kitchen, bathroom and sleeping facilities. ADUs are typically smaller than the primary dwelling-most jurisdictions limit them to between 800 and 1250 square feet of living space. This varies by jurisdiction of both cities and counties.
ADUs have also been referred to as "mother-in-law apartments", "accessory apartments", "garage apartments", “rental units” or "second units" depending on their design and purpose.
Subject to local regulations, ADUs may be located either inside, attached to, or detached from the primary home on your property. To be considered attached, living space of both the primary and accessory dwelling units must abut (be on opposite sides of the same wall). Incidental and accessory features such as trellises, decks, patios, breezeways, garages or tool sheds do not generally establish an attached structure.
There are a variety of standards which may be applied in the case of an ADU. These might include limiting the overall number of residents in both units, limitation with respect to home occupations, the location of entrance doors and size of the ADU. Where an ADU is created in a new or existing detached structure or by the addition to a house, there are additional standards regulating the exterior appearance and materials of the ADU. These additional standards include provisions for the height, roof pitch, trim, eaves and windows. Your local building department can provide additional guidelines that should be followed.
WHO CAN BENEFIT FROM AN ADU?
Many municipalities now encourage homeowners to build Accessory Dwellings on properties with single family homes. There are many restrictions that apply, however; there is a reasonable amount of flexibility that allows most homeowners to add ADUs on their property. Also, in many cases, the homes do not have to be owner occupied.
ADUs provide a surprising number of benefits to communities, homeowners and renters.
• Financial Benefit to Tenant: ADUs can be rented for reasonable rents since construction costs are less than conventional homes. Also, ADUs offer housing opportunities in more desirable single-family neighborhoods for some that might not be otherwise be able to afford to live there. Living in an ADU would give these households the opportunity to enjoy the amenities typically found in many single-family neighborhoods, including more privacy, a quieter environment, and less traffic congestion.
• Financial Benefit to Homeowner: ADUs can provide homeowners with extra income to help meet rising home ownership costs. ADUs can provide many homeowners with needed additional income to meet high mortgage and maintenance costs. This can help young families or single parents, as well as additional income for elderly homeowners who are living on fixed incomes.
• Assisting Family Members: Another advantage of an ADU is for providing needed housing for family members. Some parents will provide and ADU for young adult family members and young couples who are just getting started. Elderly family members can avoid both the emotional and financial costs of having to move into a nursing home. Another possible option to assist the elderly is for the elderly homeowner to build and move into the ADU and rent out the main house to relatives or the public. This scenario allows the elderly homeowners to live their lives out on their property without the expense and maintenance of the larger home.
• Increased Property Value: The addition of an ADU can increase the current and resale value of the property significantly above the initial cost of the ADU. A secondary rental unit or "guest house" can be very attractive to potential buyers. Also, if financed through a mortgage on the property, the interest payments and some of the closing costs are usually tax deductible.
• Tax Benefits: Homeowners can apply a portion of the rental income to maintaining their property. So, ADUs can encourage better upkeep of existing housing.
Allowing the development of accessory dwelling units, or ADUs, in single-family homes is becoming an increasingly popular technique for creating low- and moderate-income housing for both homeowners and renters. Homeowners benefit from the additional rental income that they can use to pay part of their mortgage payment or to help with the upkeep on their homes. Renters benefit from the availability of moderately priced rental housing in single-family neighborhoods. The community benefits from the addition of affordable housing for little or no public expense.
Friday, January 15, 2010
What Is A Casita?
What is a casita? In the Spanish language, ‘casa’ means ‘house,’ and ‘-ita’ is a diminutive suffix. Put it together, and casita basically means ‘little house.’ Casitas may also be referred to as auxiliary dwelling units, or ADUs. However, while an ADU always exists on a parcel of land as a secondary unit to another home, an Casita can and often is the only home on a parcel. So we might say that Casitas may also be ADU's while ADU's are by definition always Casitas. 
Casitas are ideal for:
• Vacation homes
• Weekend getaways
• Accessory Dwelling Units
• Small lots
• Cottage style housing
• Garage with apartment
True Built Home casitas have all of the benefits of a larger home, including a laundry room and full kitchen, but are simply built on a smaller scale - typically 1200 square feet or less and only one or two bedrooms. Rambler style casitas make a great home for retirees or family members with disabilities; town home or loft style homes are an attractive option for making optimal use of lot size. Several of our pre-optimized casita designs come with a generously sized garage. True Built Home casita homes are customizable, just like any of our homes, so your casita can be optioned with energy-efficiency, quality, and aesthetic features to suit your budget, lifestyle, and personal preferences.
In today’s economy many people are leaning toward building smaller homes. These homes are still a great investment since they make great rentals. Down the road, they will sell well as starter homes, or even as an auxiliary unit to a larger home that True Built Home can match the siding, roofing, and other exterior finishes to in the future.
Case Studies:• One couple decided to build a two-car garage casita, but wanted to later build a home that was attached to the garage with a covered walkway. The casita was a comfortable, inexpensive place to live while they planned and saved, and eventually enjoyed monitoring their adjoining home being constructed.
• Another family had an aging parent that wanted to leave independently. Building a casita on the same property gave her the independence she wanted and the availability of family when it was needed. Many families have considered building a casita for family members with disabilities that were looking for the same combination of independence, convenience, and security.
• An investor had an in-city property for which he envisioned building a rental/investment home. After speaking with True Built Home, he sat down with their in-house designer who suggested building two casitas together, back to back, which made the building take on a more upscale urban town home look that blended well with the surroundings. He was delighted to receive what basically amounted to a “two for one” – twice the rental income, with the price tag and complexity of just one home.
So, if you are thinking small, a casita may be the way to go. Take a look at our new line of casita – small home plans – to see if there might be a petite new place in your future! Contac us for more information: http://truebuilthome.com/contactus.php
Casitas are ideal for:
• Vacation homes
• Weekend getaways
• Accessory Dwelling Units
• Small lots
• Cottage style housing
• Garage with apartment
True Built Home casitas have all of the benefits of a larger home, including a laundry room and full kitchen, but are simply built on a smaller scale - typically 1200 square feet or less and only one or two bedrooms. Rambler style casitas make a great home for retirees or family members with disabilities; town home or loft style homes are an attractive option for making optimal use of lot size. Several of our pre-optimized casita designs come with a generously sized garage. True Built Home casita homes are customizable, just like any of our homes, so your casita can be optioned with energy-efficiency, quality, and aesthetic features to suit your budget, lifestyle, and personal preferences.
In today’s economy many people are leaning toward building smaller homes. These homes are still a great investment since they make great rentals. Down the road, they will sell well as starter homes, or even as an auxiliary unit to a larger home that True Built Home can match the siding, roofing, and other exterior finishes to in the future.
Case Studies:• One couple decided to build a two-car garage casita, but wanted to later build a home that was attached to the garage with a covered walkway. The casita was a comfortable, inexpensive place to live while they planned and saved, and eventually enjoyed monitoring their adjoining home being constructed.
• Another family had an aging parent that wanted to leave independently. Building a casita on the same property gave her the independence she wanted and the availability of family when it was needed. Many families have considered building a casita for family members with disabilities that were looking for the same combination of independence, convenience, and security.
• An investor had an in-city property for which he envisioned building a rental/investment home. After speaking with True Built Home, he sat down with their in-house designer who suggested building two casitas together, back to back, which made the building take on a more upscale urban town home look that blended well with the surroundings. He was delighted to receive what basically amounted to a “two for one” – twice the rental income, with the price tag and complexity of just one home.
So, if you are thinking small, a casita may be the way to go. Take a look at our new line of casita – small home plans – to see if there might be a petite new place in your future! Contac us for more information: http://truebuilthome.com/contactus.php
What is the iTrue System?
THE ITRUE SYSTEM
What is the iTrue System? It is True Built Home'ss collaborative approach to building, not just homes, but positive relationships
The iTrue system is True Built Home's way of ensuring that you and all of the stakeholders on your project have the right information at the right time to make the right decisions. True Built Home wants you to not only be thrilled with a superior home, but also the education, speed, and transparency in our building process. True Built Home uses a unique blend of technology, standards and processes for building, and the talents and experience of our staff to bring you the iTrue System.
1) Our Staff: Building a home can seem overwhelming to experienced builders. How much more for a first time home builder. The iTrue system includes our experienced and trained staff who are there to make the process as simple for you as possible. From advice on how to remove an existing mobile home, working with the city or county for permitting, finding reputable contractors, or obtaining financing the experts at True Built Home want to minimize your run-around by putting you in touch with the right resources and giving you the most current and relevant information for your needs.
2) Our Website: Taking advantage of internet technology, at our “Builder Trend” website, you can view the construction schedule at any time, and will receive notifications via email or even text messaging to keep you up to date on the process. Additionally, as the momentum builds and your home visibly takes shape, you will have online access to photos that you can share with friends and family.
The system is very intuitive, easy to use, and limits the information to that which is relevant for the person that is viewing it, so security is never compromised.
Having the right people, technology, and processes in the mix gives True Built Home the ability to build high quality, beautiful homes with speed. When our clients make the commitment to building a True Built Home, we are eager to deliver the reality of a beautiful new home as quickly as possible. The iTrue System makes it possible for True Built Home to guarantee a "Great Way to a Great Home." We are confident that you will be satisfied with our superior approach to building a beautiful home. Why not contact us today? http://truebuilthome.com/contactus.php
What is the iTrue System? It is True Built Home'ss collaborative approach to building, not just homes, but positive relationships
The iTrue system is True Built Home's way of ensuring that you and all of the stakeholders on your project have the right information at the right time to make the right decisions. True Built Home wants you to not only be thrilled with a superior home, but also the education, speed, and transparency in our building process. True Built Home uses a unique blend of technology, standards and processes for building, and the talents and experience of our staff to bring you the iTrue System.
1) Our Staff: Building a home can seem overwhelming to experienced builders. How much more for a first time home builder. The iTrue system includes our experienced and trained staff who are there to make the process as simple for you as possible. From advice on how to remove an existing mobile home, working with the city or county for permitting, finding reputable contractors, or obtaining financing the experts at True Built Home want to minimize your run-around by putting you in touch with the right resources and giving you the most current and relevant information for your needs.
2) Our Website: Taking advantage of internet technology, at our “Builder Trend” website, you can view the construction schedule at any time, and will receive notifications via email or even text messaging to keep you up to date on the process. Additionally, as the momentum builds and your home visibly takes shape, you will have online access to photos that you can share with friends and family.
The system is very intuitive, easy to use, and limits the information to that which is relevant for the person that is viewing it, so security is never compromised.
Having the right people, technology, and processes in the mix gives True Built Home the ability to build high quality, beautiful homes with speed. When our clients make the commitment to building a True Built Home, we are eager to deliver the reality of a beautiful new home as quickly as possible. The iTrue System makes it possible for True Built Home to guarantee a "Great Way to a Great Home." We are confident that you will be satisfied with our superior approach to building a beautiful home. Why not contact us today? http://truebuilthome.com/contactus.php
Wednesday, January 13, 2010
Stick Built Home Vs Manufactured or Mobile Home
HISTORY OF MOBILE AND MANUFACTURED HOMES
The use of movable or mobile homes dates as far back as the late 19th century in the United States, when teams of horses transported homes on wheels to beach front properties along the Outer Banks of North Carolina. Mobile homes came into vogue at the end of WWII, as 
veterans returned home and affordable housing was in short supply. They were often marketed as a practical alternative to renting an apartment. During the baby boom American families trying to find work wherever available, used mobile homes so they could move quickly with job changes.
In 1980, Congress approved changing the term 'Mobile Home' to 'Manufactured Home'. Today, manufactured homes are one of many styles of prefabricated homes built in factories, rather than on site, and then taken to the location where they will be occupied. They are usually transported by tractor-trailers over public roads (see photos).
DISADVANTAGES OF MOBILE/MANUFACTURED HOMES
The popularity of the factory built homes caused complications that the legal system was not prepared to handle. Originally, factory built homes were taxed as vehicles rather than real estate, which resulted in very low property tax rates. Eventually, local governments reclassified them for taxation purposes. In some states, mobile homes have been taxed as personal property if the wheels remain attached, but as real estate if the wheels are taken off.
The developing stigma attached to mobile homes resulted in devaluation of the existing homes in the community. The arrival of these types of homes in an area tended to result in "There goes the neighborhood" alarm (see photo. of course not every mobile home owner lives like this, but would you want to be his neighbor?) All of this led communities to start placing limitations on the size and density of developments.
Also, mobile homes, even those that were well-maintained, tended to depreciate in value over time, much like motor vehicles, rather than appreciate in value, as with site-built homes.
With these changes, rapid depreciation often resulted in the home occupants paying significantly less in property taxes than had been anticipated and budgeted. The ability to move many factory built homes quickly into a relatively small area resulted in strains to the public infrastructure and services of the affected areas, such as inadequate water pressure and sewage disposal, and highway congestion.
However, the tendency of the units of this era to depreciate rapidly in resale value has made using them as collateral for loans much riskier than traditional home loans. Terms are often limited to less than the thirty year term typical of the general home-loan market, and interest rates considerably higher. In other words, home loans often resemble motor vehicle loans more than traditional home mortgages.
Financing and insurance for manufactured homes can be very difficult. Most banks won't finance a manufactured home purchase because if there is no land included in the loan. There are some companies that specialize in mobile home loans and mobile home financing. They can finance and refinance mobile homes that are in communities.
Newer homes, particularly double-wides, tend to be built to much higher standards than their predecessors and meet the building codes applicable to most areas. As manufactured homes have come to resemble traditional stick-built homes, so have their prices. However, due the stigma of being called a "mobile" or "manufactured" home, value depreciation continues to be a problem.
ARE YOU REALLY SAVING MONEY WITH A MOBILE OR MANUFACTURED HOME?
Here is a true life experience related by one Washington State Home Builder: A home buyer was planning to put a manufactured home on their land near Yelm, WA. This Manufactured home would have been about 1400 square feet, NO garage, NO permanent foundation The price quote with tax was about $112,000. The Washington Home Builder was able to put them into a home over 1750 square feet, WITH garage and foundation, and also including many amenities that the manufactured home did not include (2x6 exterior walls instead of 2x4; vaulted ceilings, 4/12 pitch roof, etc) for only $107,000. And the appraisal was much higher than the manufactured homes appraisal. Easier to finance and get insurance for, and more value
THE STICK-FRAME HOME ADVANTAGE
In contrast, a stick-frame home will appreciate in value. In fact, a favorite of many investors is purchasing homes for rental property or to build equity with the purpose of selling the home at a later date. Many savvy investors have been able to retire comfortably from selling a home and living from the equity.
The beauty of volume on your lot home builders such as True Built Home is that, because of high initial appraisals even before the house is built, a home owner doesn't have to wait for years to build equity. They can have equity the moment they move in. This is one reason why True Built Home is becoming one of the fastest growing home builders in Washington state. (link here to "why a great way" http://www.truebuilthome.com/a-great-way.php
Tuesday, January 12, 2010
What you need to know about . . . . SEPTIC SYSTEMS
All modern homes built in the United States have some system for disposing of effluent (AKA “Poop”) from the house. In most suburban areas, effluent is directed from the house to a piping system that leads to a city sewer. In more rural areas, homes have an Onsite Sewage System (OSS). That is, individual systems that service one or a few homes tied into it.
If you are replacing a mobile or manufactured home with a stick frame home, this is an advantage to you as the septic will already be at the site. It may need to be recertified or in some cases retrofitted, but it almost always cuts down on certain site development costs as well as time in permitting.
THE SCOOP ON THE POOP
The type of system that a designer will recommend for your site depends on such factors what type of soil you have, slope of the land and so on.
There are basically two types of systems:
1. Gravity OSS: Gravity systems are typically the most desirable, simplest, and least expensive system you can get. This system utilizes gravity to move to move the effluent. Due to the nature of some soil types and sites in Washington State however, they are not always possible. True Built Homes are designed with this system in mind normally.
2. Alternative OSS: Everything that is not a gravity system falls under this category. These almost always require some form of pump system to move the effluent from the house to the drainfield. It is important that you know that since we normally plan for a gravity system, if you have a pump, running the power to operate this pump is an additional cost. This averages anywhere between $200-$1200 depending on the type of system you require. You can either have your own electrician run this power, or if you prefer we will have it done for you.
Here is a brief rundown of the various types of systems:
• Pressure Distribution System (PDS): Similar to a gravity system, except that it relies on a pump to evenly distribute effluent over a drainfield area instead of gravity.
• Sand Based Treatment System (SBTS): Like the PDS, it uses a pump, however after the pump pushes the effluent through sand to for aeration before it reaches the drainfield to help in filtration. This system is used for protection of nearby wells, surface water, or shallow ground waters.
• Aerobic Treatment Unit System (ATU): Similar to sand system but uses a tank where the effluent mixes directly with air to speed up the treatment process before it reaches the drainfield.
• Drip Irrigation Dispersal System (DIDS): Usually used in connection with either SBTS or ATU system. After the filter and pump, the effluent is then dispersed through driplines (similar to those used for plant irrigation) that are laid just below the surface of the ground. Used ideally when the soil is shallow, and/or the drainfield is smaller due to site size constraints.
• Glendon System: A very high level of treatment found often in Kitsap County. Effluent is treated in a containerized septic drainfield system before it is dispersed into the surrounding soil. This is one of the more expensive but more effective systems. For more information: http://www.kitsapcountyhealth.com/environmenta_health/oandm/o_and_m_glendon.htm
• Mound System: In this case a mound is built above ground level to become a drainfield. Aesthetically this is probably the least desirable system (who wants to look out their window at a waste disposal site?) however it may necessary under certain site circumstances, such as very dense or compacted soil (clay, bedrock, etc) or a very high water table. The mound system can make a site that would otherwise be unusable into a buildable site. And aesthetically with a bit of creativity it can be made more pleasing.
Remember “The grass is always greener over the septic tank 
For more general information on septic systems see “A Homeowners Guide to Septic Systems” at: http://tinyurl.com/ye65fkd
If you are replacing a mobile or manufactured home with a stick frame home, this is an advantage to you as the septic will already be at the site. It may need to be recertified or in some cases retrofitted, but it almost always cuts down on certain site development costs as well as time in permitting.
THE SCOOP ON THE POOP
The type of system that a designer will recommend for your site depends on such factors what type of soil you have, slope of the land and so on.
There are basically two types of systems:
1. Gravity OSS: Gravity systems are typically the most desirable, simplest, and least expensive system you can get. This system utilizes gravity to move to move the effluent. Due to the nature of some soil types and sites in Washington State however, they are not always possible. True Built Homes are designed with this system in mind normally. 2. Alternative OSS: Everything that is not a gravity system falls under this category. These almost always require some form of pump system to move the effluent from the house to the drainfield. It is important that you know that since we normally plan for a gravity system, if you have a pump, running the power to operate this pump is an additional cost. This averages anywhere between $200-$1200 depending on the type of system you require. You can either have your own electrician run this power, or if you prefer we will have it done for you.
Here is a brief rundown of the various types of systems:
• Pressure Distribution System (PDS): Similar to a gravity system, except that it relies on a pump to evenly distribute effluent over a drainfield area instead of gravity.
• Sand Based Treatment System (SBTS): Like the PDS, it uses a pump, however after the pump pushes the effluent through sand to for aeration before it reaches the drainfield to help in filtration. This system is used for protection of nearby wells, surface water, or shallow ground waters.
• Aerobic Treatment Unit System (ATU): Similar to sand system but uses a tank where the effluent mixes directly with air to speed up the treatment process before it reaches the drainfield.
• Drip Irrigation Dispersal System (DIDS): Usually used in connection with either SBTS or ATU system. After the filter and pump, the effluent is then dispersed through driplines (similar to those used for plant irrigation) that are laid just below the surface of the ground. Used ideally when the soil is shallow, and/or the drainfield is smaller due to site size constraints.
• Glendon System: A very high level of treatment found often in Kitsap County. Effluent is treated in a containerized septic drainfield system before it is dispersed into the surrounding soil. This is one of the more expensive but more effective systems. For more information: http://www.kitsapcountyhealth.com/environmenta_health/oandm/o_and_m_glendon.htm
• Mound System: In this case a mound is built above ground level to become a drainfield. Aesthetically this is probably the least desirable system (who wants to look out their window at a waste disposal site?) however it may necessary under certain site circumstances, such as very dense or compacted soil (clay, bedrock, etc) or a very high water table. The mound system can make a site that would otherwise be unusable into a buildable site. And aesthetically with a bit of creativity it can be made more pleasing.
Remember “The grass is always greener over the septic tank
For more general information on septic systems see “A Homeowners Guide to Septic Systems” at: http://tinyurl.com/ye65fkd
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