Mortgage lender outlines ADU financing options for Kitsap County homeowners

Melissa Bergrin, a loan officer with Guild Mortgage, told attendees at a Kitsap County ADU information session that homeowners have multiple financing options to build accessory dwelling units and should start by establishing a realistic budget.

Bergrin said a home equity loan or home equity line of credit is “the lowest cost loan available.” She advised homeowners to use that option when they have sufficient equity, and called it “your plan A.”

The lender outlined alternatives when equity is insufficient. “We need to get a construction loan,” she said, explaining that a construction loan allows the lender to underwrite against the home’s future value after the ADU is built. She said conventional loans, FHA loans and a takeout VA loan can all be used in coordination with…