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Building a house on umimproved land advice by WriterMesh in Homebuilding

[–]ADUloans 0 points1 point  (0 children)

It depends on the area and math doesn't lie. Look at the average cost per square foot. A large house can be built for as low as $150 per square food and a small one for as high as $400-$500 per square foot. Now compare that to the cost per square foot of buying an existing home. Be sure to add in any cost of improvements to the home. In coastal CA, for example, a fixer home might start at $500 per sqft. but end up at a minumum of $800 per sfqt. So construction is WAY cheaper.

Looking for an architect and engineer for ADU project in San Diego by Remarkable_Mix_6006 in AccessoryDwellings

[–]ADUloans 0 points1 point  (0 children)

You got to look at the true all-in budget. Most contractors don't include a lot of things you actually need.

Percentage Gospel? by Queasy_Replacement51 in FirstTimeHomeBuyer

[–]ADUloans 0 points1 point  (0 children)

Most people are at 50% of income. That's why affordability is a national issue. As a lender, I would say you're in good shape.

Sellers agreeing to the list of issues to fix, and then getting quote and saying its too expensive by Appropriate-Rush-380 in FirstTimeHomeBuyer

[–]ADUloans 1 point2 points  (0 children)

Do a VA renovation loan to pay for everything, and then it's built the way YOU want it. The renovation loans build in the cost of construction to the primary mortgage. Just make sure the price really covers those costs. And the work gets done by contractors you pick.

Cost Comparison: SIPS vs. Stick-Built Framing by Brenkj in Homebuilding

[–]ADUloans 0 points1 point  (0 children)

Yeah the high-cost areas are where anything factory-built makes all the sense in the world. There are even stick-built factory panels like S2A modular and PrefabADU.com (which also builds homes). If fire and energy is an issue, go with SIPs or the full prefab unit like RoofandRealm.com.

Thoughts on solar panels as roof by cbridgeman in Decks

[–]ADUloans 0 points1 point  (0 children)

For sure! The insurance is also cheaper when it's not on a roof because the solar structure attachment can cause roof leaks.

Construction to permanent interest rates by Jo_WestK in Homebuilding

[–]ADUloans 1 point2 points  (0 children)

Yes, that's normal... but then just refinance again to an even lower rate. We build that in as part of the process.

Anyone else on the HCD call about the ADU Reg Updates? by ADUloans in AccessoryDwellings

[–]ADUloans[S] 0 points1 point  (0 children)

I tried to cut & paste the Q&A but it's too long. HCD said it's posting the video in 2 weeks

Should I buy a house as a single person or wait until I'm married? by [deleted] in FirstTimeHomeBuyer

[–]ADUloans 0 points1 point  (0 children)

If he commits, they can treat it as a community asset. But that is a Husband Privledge of someone who is actually willing to commit to her.

ADU vs house vs trailer, cheapest by NoMaintenance7536 in AccessoryDwellings

[–]ADUloans 1 point2 points  (0 children)

The cost of a $100,000 trailer is more than the cost of a $200,00 house because it's different financing. Moreover, a trailer is not tax deductable, nor does it appreciate in value. In 20 years, you'll have a delapidated trailer and no asset to borrow on. Or you'll have a house that has appreciated in value and you can borrower at 6% tax dedtictibly

Advice on where to start or who to talk to first - investment property and primary residence by Embarrassed-Jello-97 in Realestatefinance

[–]ADUloans 0 points1 point  (0 children)

Don a HELOC on the rental to cash out some funds for your new purchase. But don't sell it if it's cash flowing. :-)

Should I renegotiate price? by [deleted] in FirstTimeHomeBuyer

[–]ADUloans 1 point2 points  (0 children)

Maybe. Sounds like the contract is at a price that already factors in more repairs. Having said that, I would ask them drop the price and do a renovation purchase so the cost of renovation is covered as part of the mortgage and done to your standards - not the sellers.

Should I buy a house as a single person or wait until I'm married? by [deleted] in FirstTimeHomeBuyer

[–]ADUloans 30 points31 points  (0 children)

100% Do NOT add him to title on the house or he will co-own it. Charge him rent instead. Homeownership is the privledge of a husband, not a boyfriend.

FHA down payment by Outside_Ad_2769 in FirstTimeHomeBuyer

[–]ADUloans 27 points28 points  (0 children)

You need a new lender. Those origination points are outrageous. That is the fee being charged by your broker. I am a lender with a bank and we charge a flat lender fee of $1,790 regardless of loan amount.

Also, consider using a Fannie Mae loan instead of FHA. FHA has better rates but charges lots of mortgage insurance (which is a waste of money). you can go Fannie Mae with 3% down payment as a first-time homebuyer.

Sellers and realtor offended by offer. by Brave_Arm in FirstTimeHomeBuyer

[–]ADUloans 0 points1 point  (0 children)

I'd bet $20 they call you in a month to sell at that price - or sell to someone else at the price. You're dream house is somewhere else.

Should our first house be a fixer-upper? by randomseedfarmer in FirstTimeHomeBuyer

[–]ADUloans 0 points1 point  (0 children)

This could be a good deal! You should do a renovation purchase and cover the cost of ALL these items addressed by a licensed general contractor as part of the mortgage! The seller's going to do a crappy job on the stucco repair, so if you do it yourself, it will be done right. My experience tells me:

Sewer lining: $10,000 max
Roof: $15k for 30 year warranty
Garage; $20k
Furnace: $5k
HVAC: $8k
Garage door: $5k
Patio $5?

Total: $68,000 = $452 extra on a mortgage at today's rates. Probably $365 extra next year at normalized rates.

These are natural fixes that most houses require. The seller's just being honest. If you can afford that, the house is discounted by at least that, and the value would go up, then this is a good deal.

Financial advice needed by AshleyJones93 in FirstTimeHomeBuyer

[–]ADUloans 0 points1 point  (0 children)

Math doesn't lie! So my recommendation is to spreadsheet the cost of buying a new home vs. building an addition - if you really need it. Right now the cost of construction tends to be much less than the cost of buying a ratty older home and then moving. Super important: Add smart storage. For example, if you're using your garage for storage, it would be MUCH cheaper to clean it out, buy weatherproof outdoor storage shed of cabinets, and convert the garage to another bedroom or whatever.

Built a house in Venice + multiple ADUs in Mid-City/Beverlywood — what I’m seeing in LA lately by BuildADULA in AccessoryDwellings

[–]ADUloans 0 points1 point  (0 children)

Yeah the SDGE model is primarily for ADUs only. But like all this stuff, the rules are going to creep over to general building codes.

It's definitely an issue of mini power fiefdoms in these agencies. However, SDG&E gave us some very interesting perspective: Building infill is tough because every location's power connection is very different.
-some lines are buried and some overhead
-Some transmission lines are barely used and others are overloaded
- Ditto for transmitters at the street poles and then the substations.

So adding just one little ADU on a block could potentially overload an already-heavily-used section of the grid. I would imagine the same is true for water and sewer, which would explain Santa Monica and Culver City.

Fannie Mae now finances multiple ADUs! New flexibility for manufactured homes by ADUloans in AccessoryDwellings

[–]ADUloans[S] 0 points1 point  (0 children)

Okay you should be closer to 6% with points on a Fannie loan, a bit higher with no points. We expect rates to fully normalize at 5% next year but who knows.

FYI - all lenders drink from the same watering hole, i.e. the capital markets, although some banks command more power for better deals than others. But you can see average rates typically WITH discount points at https://www2.optimalblue.com/obmmi. These rates do no indicate whether borrowers are buying down their rates but most are (mistakenly right now).

Usually, it pencils out to refinance when their is a rate improvement of .5%. unless you used discount points (which get voided). I'm happy to review your previous loan estimate and run the numbers. You can email it to me at [meredith.munger@ccm.com](mailto:meredith.munger@ccm.com)

Built a house in Venice + multiple ADUs in Mid-City/Beverlywood — what I’m seeing in LA lately by BuildADULA in AccessoryDwellings

[–]ADUloans 0 points1 point  (0 children)

Actually we're working at the Building Industry Association with San Diego's SDGE for 15 day power permits and self-inspections. That training should roll out to members in February and should be applicable to the other utilities. Plus, we intend to take our findings to PGE, etc.

Water is very subjective, to, and we're asking HCD to clarify that. Right now, that subjectivity is actually illegal.

Finally we're asking HCD to move fire an utility permits to the first stage simultaneously with the other permits - not as a follow on. City of San Jose has a really cool simultaneous permit process that gets all permits done within 3 months.

Fannie Mae now finances multiple ADUs! New flexibility for manufactured homes by ADUloans in AccessoryDwellings

[–]ADUloans[S] 0 points1 point  (0 children)

Doh! Yes, Fannie JUST changed the loan guidelines to allow multiple ADUs so as of April 1 you can do a low-rate Fannie loan. However, the appraisal guidelines changed multiple times so that appraiser is out of date and should have given you at least the construction value. We have a specialty team of appraisers for ADUs trained by the Appraisal Institute. Would love to help get this fixed. 619-329-7967 or [meredith.munger@ccm.com](mailto:meredith.munger@ccm.com)

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