DADU Lending needed. Partial Release question/personal residence/high equity
Hello smart people,
I aim to build a DADU in my backyard to be complete by summer/fall 2027. The plan is to SELL my primary residence (after the build is done as I will be moving into the DADU) and use that money to pay for the build. Any suggestions on lenders who would lend on this project knowing front house will be sold. I have learned lending is harder to find because it is might not be easy to get a partial release from my current mortgage holder (working on it) and would love to not refinance.
(I do have a builder who will finance but I want a somewhat custom build and they will not finance custom.)
Also wondering if people have had luck with partial release situations? Conservatively mine is 45% LTV just with house and half a lot.
Most Popular Reply
You are going to need to split the lots in order to sell one property and retain the other otherwise you're selling both properties at once you don't sell structures you sell a parc of property, typically with a structure but I'd you sell a structure on a PUD with another structure you're selling a condo. A strange, non standard condo at that.
You will need to consider egress and legal structure. This is not what you think it is. It’s not hard. It’s just not what you’re presenting or considering. Feel free to reach out by DM if you have questions.