The Federal Housing Administration (FHA) published a new draft version of a Mortgagee Letter (ML) on Thursday that would update the mortgage insurance requirements on single-family homes with accessory dwelling units (ADU). The proposal is designed to offer additional flexibility for calculating market rent and using ADU rental income to help qualify for FHA-insured mortgage financing.
“If finalized, these updates would allow more borrowers to qualify for FHA financing for properties with ADUs, including 203(k) renovation loans,” the FHA said in its announcement. “FHA’s action today advances the goals of the Biden-Harris Administration’s Housing Supply Action Plan.”
While FHA policy does permit the purchase, rehabilitation or refinance of properties with ADUs, current policy does not allow for the inclusion of rental income from an ADU in a potential borrower’s qualifying income, FHA explained.
“This [ML] establishes protocols for the Appraiser’s analysis and reporting of [ADU] market rent on appraisals and for consideration of this rental income in underwriting forward mortgages and performing the financial assessment for Home Equity Conversion Mortgages (HECM),” the draft ML reads.
HECM is the FHA-sponsored reverse mortgage program, and the related financial assessment requires lenders to assess a borrower’s financial and credit history to determine their ability to cover a reverse mortgage loan’s monthly obligations. The related financial obligations for HECM loans include property taxes, homeowner’s insurance and homeowner’s association fees, if applicable.
In addition to adding more loan flexibility, the proposal would help to address issues with housing availability and affordability, according to FHA Commissioner Julia Gordon.
“FHA is at the forefront of the Administration’s efforts to increase housing supply and affordability,” Gordon said in a statement. “At a time when housing supply is constrained and ADUs are gaining popularity nationwide, an updated policy has the potential to expand opportunities for low- and moderate-income homeowners to benefit from the wealth-building potential of ADUs while supporting the affordable housing needs of their communities.
The popularity of ADUs has increased in recent years. On the West Coast, Seattle saw a 250% ADU construction increase from 2019 to 2022. In California, demand for ADUs is quickly outpacing supply, according to reports.
Washington state’s Senate also recently passed a bill that would lift restrictions on the construction of “middle housing,” which refers to duplexes, fourplexes and ADUs.
The draft ML has been posted to FHA’s single-family “drafting table,” which includes instructions for stakeholders to submit comments on the proposed guidance.
A landslide struck Laguna Beach’s Bluebird Canyon in 1978 — smashing cars, buckling streets and destroying 24 homes. An adjacent swath of earth broke loose in 2005, wiping out 12 more homes.
That wasn’t enough to keep Scott Tenney away. In 2010, Tenney and his wife, Mariella Simon, bought a 15-acre hillside ranch near the disaster area despite the listing warning that the property was on the site of an ancient landslide.
“We knew we’d have to do a bit of terracing and retaining, but California is what it is,” Tenney said. “It’s a dynamic place not just culturally, but geologically.”
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From an outside perspective, his might seem a confounding decision. But in Southern California it’s an extremely common one, because that geological diversity, as Tenney calls it, is not just the danger. It’s the allure.
Elevation has long been aspirational here — an escape from the urban flats.
Since settlers first started pouring in from the relative flatness of the East Coast and Midwest, they were captivated by California’s vertiginous landscape. Plein air painters flocked to capture the light of the arroyos. Health seekers sought the clean air of the San Gabriel foothills. Folk rockers found inspiration in Laurel and Topanga canyons. And the moneyed elite started building their houses higher and higher above the basin, forever seeking the trophy perch with the show-off view.
But that perch has always come at the risk of catastrophe. Homes slide into a gulch in Palos Verdes. Fires roar over the Malibu hills. A debris flow kills 23 people and destroys 130 homes in Montecito. Heavy snow traps thousands in the San Bernardino Mountains. And winter storms pull fragile bluffs into a rising sea.
These natural disasters so often occur where the tectonic plates collided and folded into beautiful vistas.
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While other regions may face only one main disaster threat — tornadoes in the Midwest, hurricanes on the Gulf and East coasts — California’s extreme topography brings siege from all sides: the ocean, the trees and brush, the sky above and the ground below. And oftentimes, the most attractive areas are some of the most dangerous.
A land of disasters
More and more people are crowding into the Wildland Urban Interface — the zone of transition between unoccupied land and human development. It’s where properties mingle with undeveloped (and often steep) land, and it’s uniquely susceptible to natural disasters.
According to the U.S. Fire Administration, this area grows by 2 million acres a year as people fan out to the edges of wilderness in search of affordable houses, more space or simply a break from life in the city. And California holds more homes in this dangerous zone than any other state in the country.
And prices keep soaring. It doesn’t matter if a house sits on stilts on the side of a cliff, if it’s a landslide complex slowly sliding toward the sea, or if it’s predicted to be knee-deep in water in a couple of generations — there will always be a buyer.
As Californians flock to risky areas, disasters take a greater toll. Over the last decade, the state has experienced 20 disasters that each cost at least $1 billion in damage from flooding, wildfire and extreme heat. Those 20 alone combined for 783 deaths, according to National Centers for Environmental Information.
According to the real estate listing database Redfin, the trend is nationwide. Last year, the country’s most flood-prone, heat-prone and fire-prone counties all saw more people move in than out. Redfin researcher Sheharyar Bokhari blames one primary factor: the housing affordability crisis.
“L.A. and most other coastal cities are expensive. With remote work becoming more of an option, people are finding they can have more space and finally afford a home if they move to riskier areas,” he said.
Bokhari said another L.A.-specific factor is development — mainly that there’s not as much being built in the city compared to the more rural areas surrounding it.
He points to the Inland Empire, which is typically more affordable than L.A. County. In Riverside County, roughly 600,000 homes face a high risk of wildfire, the most of any of the 306 high-fire-risk counties in the country. Despite that, the county’s population grew by 40,000 over the last two years.
Even if experts — and common sense — say to stay away from certain areas, Bokhari said that won’t likely happen because local governments aren’t incentivized to push people out.
“These disaster-prone cities need revenue and people paying taxes,” he said. “They just claim that they’ll be more resilient and take more safety measures going forward,” he said.
Where else would I go?
Since moving onto the ancient landslide zone, Tenney and his wife founded Bluebird Canyon Farms, which offers workshops and grows food for local markets. His time is split between that and taming the erosion-prone land beneath the farm.
To combat sliding land, Tenney installed a gravity wall, 200 feet long and 9 feet tall, to retain the hillside. In addition to grading the terrain to make the slopes gentler, he added powerful drainage systems and timber-and-concrete cribbing to keep structures in place.
The work never stops, and Tenney keeps a monthly schedule to keep up with tasks. Clear brush in spring. Clean storm drains in September. Inspect terracing every few months.
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“You can run but you can’t hide,” he said, adding that urban centers such as L.A. have their own laundry lists of things to worry about: crime, homelessness, etc. “You won’t experience a wildfire in downtown L.A., but there are plenty of other things to be concerned with.”
Cribbing systems used by Tenney have become commonplace in Portuguese Bend, a small coastal community on the Palos Verdes Peninsula situated on a slow-moving landslide complex. Land moves up to 8 feet a year, and at that rate residents would rather ride the sliding earth toward the sea than sell and move somewhere else.
“I’ll be here until I can’t be here anymore. I’ll slide away with the land,” Claudia Gutierrez told The Times in July after a nearby landslide in Rolling Hills Estates sent a handful of homes careening down a canyon.
You’d think the real estate market in disaster-prone areas would eventually slow down, but there are no deals to be found for house hunters. Longtime residents often stay put post-disaster, and incoming residents consistently pay a premium to live in a scenic, though potentially dangerous, area.
In cities tucked among the foothills of the Verdugo and San Gabriel mountains such as Altadena and La Cañada Flintridge, buying in a high-fire-risk zone might be ever-so-slightly cheaper than buying in a safer place. And buyers pounce.
“My clients try to choose low-fire-risk zones, but if the house in the fire zone is the right price, that is more important,” said Brent Chang of Compass.
When Lisa and Michael McKean got home to Malibu Park from their honeymoon on Nov. 8, 2018, they were so exhausted that they went straight to sleep. The newlyweds didn’t even bother unpacking their suitcases of swimsuits still wet with Caribbean saltwater.
When they woke up, Lisa looked out her back window and saw a 10,000-foot cloud of billowing black smoke.
The Woolsey fire was ravaging the Malibu hills.
The pair grabbed their still-packed suitcases and fled to the Zuma Beach parking lot, where they spent the day surrounded by horses, dogs, cats and neighbors all wondering if their homes would survive.
Theirs, built a year earlier, did not.
“The entire neighborhood burned,” Lisa said. “Everything was black, scorched earth.”
Devastated, the pair spent six months crunching numbers on the cost of rebuilding versus moving. The home that was destroyed had taken four years to approve and three years to build. Their next one could take even longer.
Despite the damage, and despite the ceaseless, inescapable risk of a future fire, they ultimately decided to stay and rebuild.
Cheryl Calvert has lived in Malibu since 1985 and has adapted to a life of fire. To her, the flames are nearly routine.
“Once you make it through your first one, you realize it’s manageable. But you have to plan ahead,” Calvert said.
She keeps two bags packed at all times: one full of goggles and N95 masks and one with dog supplies.
Calvert has experienced plenty of fires during her time in the coastal community, but the worst was the Corral fire in 2007. She was in the driveway as the flames arrived, and she sprayed the corner of her wooden home with a hose as it ignited. Her guesthouse and garage burned down, but the house was saved.
She never considered leaving. Instead, she became more prepared, installing an extra water tank and leaving a pair of shoes by the front door at all times for quick escapes.
“We have to do crazy things, but it’s only crazy for an hour or two every five or 10 years,” she said.
She ran down the usual list of reasons why people move to Malibu: the beautiful landscape, the ocean breeze, the sweeping views. But she said the main reason her and so many of her neighbors stay is because of the community.
“We’re all living near like-minded people who are willing to risk themselves for each other,” she said. “It’s a bunch of hippies. Rich hippies.”
The psychology of staying
A life among the trees, coasts and cliffs is often what lures Californians to disaster-prone communities, but according to experts, the factors that make them stay after a disaster strikes are much more complicated.
Age, race and class can all indicate whether someone is more or less likely to move after experiencing a disaster. For example, Zhen Cong, professor of environmental health sciences at the University of Alabama at Birmingham, found that in the wake of tornados, the middle class might be the most inclined to move since the upper class has the resources to stay and rebuild, while the lower class is often trapped and has no other choice but to stay.
Other relocation factors include the level of damage to the home and whether the person owns the place or rents. But often the most important factor is one that can’t be easily quantified: “People who have a strong sense of place and a strong sense of community are less likely to move,” Cong said.
Ironically, some disasters can even encourage people who otherwise would have left to stay.
In studying post-tornado relocation decisions across the country, Cong found that after a disaster, people increase their disaster preparedness. Part of that includes gathering supplies, but it also includes social engagement: talking to neighbors, sharing information on social media and attending meetings. That engagement, which might not happen if a tornado doesn’t strike, brings a greater sense of community, leading people to stay in that community.
Anamaria Bukvic, an assistant professor at Virginia Tech who studies coastal hazards and population displacement, found that after Hurricane Sandy struck the East Coast in 2012, non-geophysical factors mattered the most in deciding whether to stay or leave. For example, confidence in adapting to future disasters was a more relevant indicator if someone would stay than how close they lived to the ocean.
“The experience of flooding can be emotionally disturbing and traumatic,” Bukvic said. “When facing problems, some people try to avoid them. Others try to resolve them.”
She added that confidence in government plays a major role as well. If a person believes the government responded well to the disaster and will keep them safe during the next disaster, they’re more likely to stay.
That’s something that Malibu Mayor Bruce Silverstein thinks about when overseeing the city’s disaster response plan. Although L.A. County is responsible for physically fighting the fires that plague the area, Malibu has instituted a free service in which residents can request a fire-hardening expert to inspect their property to better prepare them for the next blaze.
The city also outlaws certain types of vegetation susceptible to fire and tries to prevent excessive population growth in order to make evacuation from hills and canyons easier during emergencies. It’s the main reason accessory dwelling units (ADUs) are harder to build in Malibu than L.A.
“Unlike L.A., we don’t have standards that encourage growth,” Silverstein said. “We maintain the status quo and try to keep space between properties so if one catches on fire, it doesn’t extend to the neighbors.”
Michael Dyer, a former Santa Barbara County fire chief who now serves as public safety director for Calabasas, said safety became a top priority for the city after Woolsey, energizing the community into forming multiple volunteer commissions that plan for disaster preparedness.
“We have to provide that service as a government,” Dyer said while monitoring a brush fire in Topanga from his front porch. “No one has forgotten Woolsey yet. And as long as I’m here, we won’t.”
No simple fix
As the climate crisis worsens and the Wildland Urban Interface grows in size, experts are eyeing ways to mitigate the effects of natural disasters to save both the environment and human lives.
L.A. is currently considering an ordinance that would limit development in the Santa Monica Mountains. Using recent wildfires and the Rolling Hills Estates landslide as examples, supporters said the measure would make it harder to build mansions and large hillside homes as a way to limit damage caused by disasters, as well as protect open space and wildlife.
In addition, national insurers such as State Farm and Allstate are no longer selling insurance policies in wildfire-prone areas after a series of catastrophic fires raised premiums. Without insurance, people might be disincentivized from buying and building homes in risky areas.
Redfin is also tinkering with a way to warn people of a home’s potential dangers. The company conducted an experiment in which it showed a listing’s flood risk score to certain users but not others and found that those who were shown the scores were less likely to bid on the home.
The scores have since expanded to show risk for fire, heat, drought and storms.
In the meantime, Californians continue to build, and rebuild, in disaster-prone areas. Lisa and Michael McKean, whose home burned down in 2018, moved back into Malibu Park in 2021.
As neighbors slowly filter back into the neighborhood, they walk around to measure progress and congratulate those who have returned.
“We used to hate cement trucks and jackhammers, but now we celebrate them,” Michael said. “The cheery sound of construction.”
The median price of a home in Los Angeles will soon cross a startling threshold: $1 million. The median price of a home in California, meanwhile, is approaching $750,000, according to Zillow. That is more than double the national median and more than triple the figure in Ohio.
This is the definition of housing unaffordability.
Homeownership is becoming farther and farther out of reach for more and more Californians. As of 2019, only 55% of Californians, and just 36% of Black Calfornians, owned a home. The American Dream is increasingly living up to its name — by being no more than a dream — in California.
This isn’t just about homeownership. Renters face proportionate price increases. For the first time, the median monthly rent in the United States rose above $2,000 in the last year, and it’s closing in on $3,000 in California. Many people can’t afford to buy or rent a home here.
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The cost of housing is high for many reasons, including the cost of labor and materials and myriad environmental regulations and mandates, many of them important. But chief among the reasons are supply restrictions. As with any other commodity, if you restrict the supply of housing, you can charge more for it.
This is essentially what zoning and other restrictive land-use regulations do. So it’s no wonder that a wealth of empirical evidence has shown that restrictive zoning makes housing more expensive.
The Los Angeles region has been a prolific producer of such restrictions. A study I led last year found that 78% of residential land in the Greater Los Angeles region and 74% in the city of Los Angeles itself was zoned exclusively for single-family homes, prohibiting apartment buildings and other multifamily developments.
We also found that home prices were correlated with the degree of stringent and exclusionary zoning in every community in the region. So were racial diversity and segregation.
UC Berkeley’s Terner Center modeled six different housing policies for Los Angeles and found that the single intervention with the biggest impact on supply growth was loosening density restrictions.
Yes, California has eased single-family zoning, the ultimate density restriction, by allowing more “accessory dwelling units” — backyard cottages, in-law units and the like — and through “plex” reforms, which allow homeowners to subdivide and redevelop parcels for duplexes and four-plexes. But these measures are too modest to bend this wicked cost curve.
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What we need is deeper density, more multifamily housing and “missing middle” developments that provide a variety of designs suitable to different incomes. We need localities to allow it, and we need the state to mandate it.
What’s at stake is nothing less than the old notion that people born on the lower rungs of the income and wealth ladder can climb higher, the only limit being their ambition and effort. Since World War II, a prominent pillar of this widespread belief has been homeownership. New-Deal-era laws, financial institutions and the GI Bill created the 30-year mortgage, and suburban developers sold homeownership to tens of millions of (mostly white) Americans.
It worked. In 1940, just 44% of Americans owned their own home. By 1950, that figure had reached 55%, and it steadily climbed in every subsequent decade until the subprime mortgage crisis of 2007. By 2000, 67% of Americans owned their own home.
These figures, however, mask enormous disparities. In 2020, white homeownership reached a postwar peak of 75%, while Black homeownership lagged far behind at 44%, only slightly higher than it was in 1970, the year the Fair Housing Act took effect.
Huge generational disparities also persist. Older Americans are far more likely to own their homes; younger generations are struggling to catch up.
One major obstacle to closing these gaps is that the cost of homeownership has soared relative to incomes. According to data from the Federal Housing Finance Agency, the price of housing in the United States rose an average of 4.6% per year from 1975 through 2022, outpacing economic growth and wages. The rate in California was an astonishing 6.7% a year, higher than in any other state.
While it’s true that housing appreciation hasn’t matched the stock market — the S&P 500 rose almost 12% annually on average during the same period — this also underscores the problem. Housing and shelter are a human necessity; stocks are not. And yet housing in the United States and particularly California has become an investment vehicle available to far fewer of us.
For many Americans fortunate enough to own a home, it’s their largest investment — a nest egg for retirement or an asset to borrow against to raise cash for an emergency or a child’s college education. Many homeowners therefore place a premium on maximizing not just the present value of their asset but also its future appreciation.
This is why homeowners not only upgrade kitchens, cabinets and bathrooms, but also fight against multifamily housing, affordable housing and homeless shelters in their neighborhoods and communities in an effort to protect their investments. These “homevoters” will fight to the hilt to prevent any loosening of zoning restrictions.
Overcoming this impulse and undoing restrictive zoning won’t make housing affordable or revive the American Dream on its own. If we don’t, however, the dream will become an impossibility for most of us.
Stephen Menendian is the assistant director and director of research at UC Berkeley’s Othering and Belonging Institute.
Welcome to the ultimate guide on converting a carport to a garage. Whether you reside in the vibrant city of Nashville, TN, and dream of transforming your carport into a garage with a guest living area, or you just bought a house in the quaint and charming city of San Marcos, CA, where you envision creating a mini bar and recreational living space, this Redfin article provides a comprehensive list of all the major considerations you should to take into account before you begin your project.
Converting a carport into a functional and versatile space is not only a trending home feature that adds value to your home but also opens up a world of exciting possibilities. In this article, we’ll provide you with a comprehensive checklist to consider before starting on your carport conversion project, along with fresh and innovative ideas that will inspire and elevate your project to new heights.
Carport garage conversion checklist
1. Check your local building codes, HOA regulations, and permits
Before starting on a carport garage conversion, it’s crucial to familiarize yourself with the specific building codes and regulations in your area. Local building codes determine the minimum standards for construction, safety, and design, ensuring that the garage conversion meets essential requirements. Additionally, if your property falls under a Homeowners Association (HOA), their rules and guidelines may impose restrictions or design criteria for garage conversion.
Ensure compliance with both the local authorities and the HOA to avoid potential legal issues or costly alterations down the line. Furthermore, obtain all necessary permits before beginning your project as these documents ensure that the project is reviewed and approved by the appropriate authorities and that it adheres to safety and zoning standards.
2. Determine your budget and financing options
Creating a comprehensive budget is a crucial step before starting any carport garage conversion project. Carefully assess the scope of your project, including materials, labor, permits, and any additional features or amenities you plan to incorporate. Factor in unexpected expenses to allow for flexibility during the project. If your budget exceeds your available funds, explore financing options such as home equity loans, personal loans, or lines of credit. Make sure to choose a financing solution with favorable terms and interest rates that align with your financial capabilities.
3. Hire a professional for a structural assessment
Converting a carport into a garage involves altering the existing structure, and it’s vital to ensure its stable and durable. Engage a qualified and experienced professional, such as a structural engineer or contractor, to conduct a thorough assessment of the carport’s foundation, framework, and load-bearing capacity. They will identify any potential weaknesses or areas that require reinforcement to support the additional weight of walls, roofing, and other modifications. The structural assessment provides crucial insights that guide the design and construction phase, ensuring that your new garage is safe and built to last.
Relying on professional expertise during this stage minimizes the risk of structural issues and potential hazards in the future. Before commencing any home improvement project, make sure to ask contractors questions to ensure their qualifications, experience, and adherence to local regulations and building codes. This proactive approach will help you select the right professional for the job and provide peace of mind throughout the conversion process.
4. Plan the design and layout of your garage
Careful planning of the design and layout is essential for creating a functional and aesthetically pleasing garage. Consider the number of vehicles you want to accommodate, as well as any additional storage needs or utility areas, such as a workbench Think about the placement of windows and doors to ensure sufficient natural light and easy access. If you intend to use the garage for multiple purposes, create designated zones to optimize space. Sketch out your ideas and explore various design options to find the one that best suits your needs and complements the overall architecture of your home.
5. Select the appropriate building materials
Choosing the right building materials is vital for the structural integrity, durability, and appearance of your garage. Select materials that align with your design preferences and work best for your local climate. For example, if your area experiences harsh weather conditions, opt for materials that offer superior weather resistance. Consider the type of walls, like wood or concrete blocks, and the types of roofing materials, like asphalt shingles or metal that will suit your needs and budget. High-quality materials may require a higher upfront cost but can save you money in the long run by reducing maintenance and repair expenses.
6. Plan for ventilation and climate control
Proper ventilation and climate control are essential to maintain a comfortable and safe environment within the garage. Adequate ventilation prevents the buildup of moisture and fumes, which can lead to mold growth and unpleasant odors. Install vents or exhaust fans to promote airflow and improve air quality. Additionally, consider insulation to regulate temperature extremes, keeping the garage cooler in summer and warmer in winter. If you plan to use the garage for activities that generate heat, such as a workshop or home gym, consider incorporating heating and cooling systems to ensure a pleasant workspace year-round. Efficient ventilation and climate control contribute to the longevity of the garage and protect any valuable items stored inside.
7. Determine if you need utility connections
Evaluate whether your garage conversion requires utility connections such as electricity, water, or gas. If you plan to use the garage as a workshop, laundry room, or home office, electrical outlets are essential to power tools and appliances. If you need water for a utility sink or bathroom, ensure the plumbing connections are feasible. Consider the potential cost of extending utilities to the garage and consult with professionals to understand the best approach for connecting utilities safely and efficiently.
8. Explore your garage door options
Selecting the right garage door is crucial for convenience, security, and aesthetics. Assess various garage door types, such as overhead roll-up doors, sectional doors, or swing-out doors, each offering different benefits. Also, consider the material of the garage door, such as steel, wood, or aluminum, based on your preferences and budget. Automatic garage door openers with remote controls provide added convenience and security. Choose a garage door that complements the architectural style of your home and meets your functional requirements.
9. Plan for lighting
Proper lighting is essential for a functional and safe garage. Assess the lighting needs based on the garage’s intended use. Overhead lighting provides general illumination, while task lighting is necessary for work areas. Consider LED lighting for its energy efficiency and long lifespan. If you want to maximize natural light, strategically place windows or skylights to enhance brightness during the day. Motion-activated lights around the garage’s exterior can also serve as security measures, deterring potential intruders.
10. Consider security measures
Garages often store valuable items like vehicles, tools, and equipment, making security a top priority. Install sturdy locks on all doors, including entry doors and any connecting doors to the house. Consider an alarm system to protect against theft and unauthorized access. Security cameras provide surveillance, allowing you to monitor activities around the garage. Motion sensor lights outside the garage act as a deterrent and enhance visibility during nighttime. Additionally, if you have windows in the garage, consider adding window locks for added security. By incorporating these security measures, you can safeguard your belongings and ensure peace of mind.
Carport conversion garage ideas
A garage is more than just a space to store cars, it can be a versatile extension of your home. Once you have converted your carport into a functional area, it’s time to consider a garage makeover that will elevate its potential even further. Explore exciting ideas such as transforming your garage into a dedicated home gym, a productive home office, or a fun-filled playroom.
For DIY enthusiasts, a well-organized workshop area can become a dream come true. Alternatively, create a cozy pet area to ensure your furry companions have a safe and comfortable space. With these creative garage makeover ideas, your garage will become a dynamic and multi-functional space that enhances your lifestyle and adds value to your home.
Workshop space
Converting your home garage into a workshop area is a dream come true for DIY enthusiasts and hobbyists. Start by installing a sturdy workbench with ample storage for tools and materials. Organize your tools on peg boards or wall-mounted tool racks for easy access. Adequate lighting is crucial for precision work, so consider adding task lighting above the workbench and general overhead lighting for the entire space. Enhance functionality by incorporating built-in shelves and cabinets for storing supplies. Insulate the garage to regulate temperature and make it a comfortable workspace year-round. With a dedicated workshop in your garage, you’ll have the ideal environment to unleash your creativity and complete various projects with ease.
Playroom
Converting your garage into a versatile playroom creates a dedicated space for recreational activities and entertainment for all members of the household. Start by creating a blank canvas with neutral colors to suit various interests and age groups. Consider adding soft and comfortable flooring for activities like yoga, board games, or simply lounging around. Install ample storage solutions such as shelves, bins, or cabinets to keep toys, games, and recreational equipment organized and easily accessible. Incorporate versatile furniture like bean bags, floor cushions, and modular seating to accommodate different play activities.
Add a chalkboard or whiteboard wall for creative expression and interactive fun. Integrate a variety of entertainment options, such as a TV, gaming consoles, or a projector for movie nights and virtual adventures. By creating a multifunctional playroom in your garage, you’ll have a space where everyone can unwind, have fun, and spend quality time together.
Home office
Converting your garage into a home office allows you to create a productive workspace away from distractions inside the house. Start by insulating the garage to ensure a comfortable and quiet environment. Consider adding windows or skylights to bring in natural light and create a pleasant working atmosphere. Install a sturdy desk and ergonomic chair for comfortable hours of work. Organize the office with shelves, filing cabinets, and storage solutions for a clutter-free space. Set up a reliable internet connection to stay connected and productive. If necessary, add heating and cooling systems to maintain a comfortable temperature. Personalize your home office with artwork, plants, and decor to create a motivating and inspiring workspace that enhances your productivity and creativity.
Home gym
Transforming your garage into a home gym provides the ultimate convenience for fitness enthusiasts. Clear out clutter and install rubber or foam flooring to create a safe and comfortable workout area. Incorporate wall-mounted mirrors to check your form and enhance the sense of space. Install proper ventilation or fans to keep the air fresh during intense workouts. Organize your gym equipment with wall-mounted racks or freestanding storage systems. Consider adding a sound system to keep you motivated during exercise sessions. With a home gym in your converted garage, you can exercise at any time without the hassle of traveling to a commercial gym, ensuring a more consistent and effective fitness routine.
Pet play area
Transforming your garage into a pet play area provides a safe and comfortable space for your furry companions. Clear out the garage and create a cozy environment with pet-friendly flooring, such as rubber mats or pet-safe carpeting. Designate specific areas for your pets to rest, play, and eat, and consider adding built-in pet beds or kennels. Install proper ventilation to maintain a fresh and odor-free atmosphere. Set up storage for pet supplies and accessories, including food, toys, and grooming tools. Ensure the garage is secure with pet-friendly doors and windows, allowing your pets to enjoy the outdoors safely. By converting your garage into a pet area, you offer a dedicated space where your pets can feel at home and be well-cared for.
Home bar and entertainment area
Converting your garage into a stylish home bar and entertainment area provides an ideal space for hosting gatherings and unwinding with friends and family. Install a functional bar counter with seating, complete with a sink and storage for drinkware and beverages. Consider adding a mini-fridge, ice maker, and wine cooler for easy access to refreshments. Set up a media area with a large-screen TV, sound system, and comfortable seating for movie nights and sports events. Enhance the ambiance with mood lighting, such as pendant lights or LED strips. Add decorative elements like wall art, mirrors, and shelving to showcase your spirits collection and add character to the space. With a well-designed home bar and entertainment area, your garage will become the go-to spot for fun and relaxation.
Laundry room
Transforming your garage into a laundry room not only significantly enhances your home’s functionality but also provides the added benefit of maintaining a clean and organized garage space. Install a utility sink for handwashing and soaking clothes, and set up space for your washing machine and dryer. Add ample counter space for folding and organizing laundry. Integrate built-in cabinets or shelves for storage of laundry supplies, cleaning products, and household essentials. Consider a drying rack or designated hanging space to air-dry clothes. Ensure the garage is well-ventilated for humidity control and maintain a pleasant atmosphere while doing laundry. By transforming your garage into a laundry room, you can streamline your laundry routine and keep your living spaces tidy and clutter-free.
Art and music studio
Transforming your garage into a versatile music and art studio at home provides an inspiring and creative space for artistic expression and musical pursuits. Start by creating a well-lit environment with ample natural light and adjustable artificial lighting to cater to various art and music needs. Install soundproofing materials like acoustic panels or foam to minimize sound leakage and ensure optimal acoustics for musical instruments. Consider adding storage solutions like shelves, drawers, and cabinets to organize art supplies, paints, brushes, and musical equipment.
Set up designated areas for artwork creation, musical instrument practice, and recording projects. Personalize the studio with artwork, musical memorabilia, and decor that reflect your unique style and inspirations. With a dedicated art and music studio in your garage, you’ll have a sanctuary to explore your creative passions and immerse yourself fully in the world of art and music.
Guest room
Converting your garage into a cozy and welcoming guest room is a fantastic way to provide a welcoming space for visiting friends and family. Begin by decluttering and insulating the garage to create a comfortable environment. Install proper lighting and ventilation to ensure a pleasant stay for your guests. Consider adding a comfortable bed, storage solutions, and decor that make the guest room feel like a home away from home. Personalize the space with thoughtful touches to make your guests feel special and cared for during their stay.
However, before proceeding with the conversion, be sure to check with your local authorities about Accessory Dwelling Units (ADUs) regulations, as these may apply to the guest room conversion depending on your area’s zoning laws and building codes. Taking these factors into consideration will help you create a delightful and compliant guest room for your loved ones.
In this week’s series of initial announcements, the U.S. Department of Housing and Urban Development (HUD) announced “an $85 million first-of-its-kind competitive [Pathways to Removing Obstacles to Housing (PRO Housing)] funding opportunity for jurisdictions and new guidance for providers of affordable housing will help communities address local housing challenges,” the department said.
The White House detailed more of the intention behind PRO Housing, saying that it “will provide communities with funding to identify and remove barriers to affordable housing production and preservation.” HUD will award grants of up to $10 million to jurisdictions that have an “acute demand for affordable housing and are working to identify, address, or remove barriers to housing production and preservation.”
Also a part of this broader initiative is an announcement earlier this month by the U.S. Department of Transportation, aimed more squarely at existing zoning law.
“[USDOT’s] Reconnecting Communities and Neighborhoods (RCN) program will provide up to $3.16 billion for planning and capital construction projects that prioritize disadvantaged communities and improve access to daily destinations,” the White House explained. “This includes improving connections to affordable housing, fostering equitable development, and increasing housing supply through zoning reform.”
The White House also announced a new initiative from the Environmental Protection Agency (EPA), a $27 billion Greenhouse Gas Reduction Fund (GGRF) “which will mobilize private capital and provide financing for thousands of clean energy projects, including cost-saving retrofits of existing homes and buildings, construction of zero emissions buildings, and commercial to residential conversions, among others,” the White House said.
Other recent initiatives cited by the administration include the publication of guidance from HUD designed to offer greater flexibility for lenders when underwriting multifamily transactions up to $120 million; additional streamlining of requirements for accessory dwelling units (ADUs) first announced in April; and employ federal funding to facilitate more commercial-to-residential conversions.
“The White House will lead a new interagency working group to develop and advance federal funding opportunities that support the conversion of commercial properties to housing, and leverage climate-focused federal resources to create zero emissions and affordable units,” the administration said.
The White House also reiterated the availability of new research funding designed to analyze office-to-residential conversions.
In recent years, the housing industry has witnessed a surge in interest towards innovative and sustainable solutions for affordable living. One such trend that has gained traction is modular homes. These homes, often referred to as “prefab modular homes,” have been praised for their versatility, cost-effectiveness, and environmental friendliness.
In this Redfin article, we will delve into the world of modular homes, exploring what they are, their benefits, and how they contribute to the future of housing. From bustling metropolises like New York City and Los Angeles to suburban areas such as Seattle and Dallas, the demand for innovative and sustainable housing solutions is on the rise. Let’s embark on this journey to uncover the hidden potential of modular homes.
What are modular homes?
Modular homes, also known as prefabricated homes, are structures that are built in sections (modules) at a factory, before being transported and assembled on-site. These modules are constructed in a controlled environment, ensuring precision and quality, and then transported to the building site, where they are pieced together like building blocks to form the final dwelling.
These homes can vary greatly in size and style, ranging from single-story bungalows to multi-story houses with unique architectural designs. The ability to customize the layout and aesthetics makes them an attractive option for homebuyers seeking personalization within their budget.
Types of modular homes
Single-section homes
Also known as “single-wide” homes, these are the simplest and most compact modular homes available. They consist of a single unit and are well-suited for individuals or small families with limited space requirements.
Multi-section homes
Multi-section homes, often referred to as “double-wides” or “triple-wides,” are larger than single-section homes. They are constructed in multiple sections and are joined together during on-site assembly. Multi-section homes offer more spacious living areas and can accommodate larger families.
Custom modular homes
Custom modular homes are tailored to the specific needs and preferences of the homeowner. From unique floor plans to high-end finishes and custom architectural features, these homes offer endless possibilities for personalization.
Panelized homes
Panelized homes fall under the broader category of modular construction. They are built in panels, such as walls and roof sections, which are assembled on-site to create the entire home. Panelized construction allows for more flexibility in design and can cater to complex architectural styles.
Prefab accessory dwelling units (ADUs)
Prefab ADUs are smaller modular homes designed to serve as secondary dwelling units on an existing property. They are an ideal solution for homeowners looking to create rental income, house elderly family members, or have a private home office space.
The Advantages of Modular Homes
Cost-effectiveness: One of the primary advantages of modular homes is their cost-effectiveness. Compared to traditional stick-built homes, modular homes often come at a lower price point due to the economies of scale achieved through factory construction and reduced labor costs.
Reduced construction time: Since most of the construction occurs in a factory setting, the overall building process is significantly faster than conventional methods. On-site assembly usually takes only a few weeks, cutting down on construction time and saving both money and resources.
Quality and durability: Factory construction ensures a higher level of quality control. These homes are engineered to withstand transportation stresses and must adhere to strict building codes and standards. As a result, modular homes often exhibit greater durability and structural integrity.
Eco-friendly: Prefab modular homes are built with sustainability in mind. The controlled manufacturing environment reduces waste and energy consumption. Additionally, some manufacturers use eco-friendly materials and offer energy-efficient options for appliances and insulation, making them an environmentally responsible housing choice.
Customization: Modular homes offer a surprising degree of customization. Homebuyers can choose from various floor plans, finishes, fixtures, and architectural styles to create a home that suits their preferences and lifestyle perfectly.
Flexibility and expandability: Another attractive feature of modular homes is their flexibility. They can easily be expanded in the future by adding additional modules or reconfiguring the existing space, providing homeowners with the option to accommodate their evolving needs.
“When exploring modular homes, consider the benefits they offer, such as rapid construction, customization options, and sustainability,” insists smart house builder DEEPBLUE. “Embrace the flexibility of modular design to create a living space that perfectly suits your preferences and lifestyle. By prioritizing your needs and carefully considering the layout, finishes, and features, you can make the most of the advantages modular homes provide, ensuring an efficient and enjoyable living experience.”
Prefab modular homes: the process
The construction process of prefab modular homes is an intricate combination of advanced technology, skilled labor, and creative design. Here is a step-by-step overview of how these homes are built:
Design and planning: The process begins with the design phase, where the homebuyer collaborates with architects and designers to create a customized floor plan and select the desired features and finishes. The design is then translated into a detailed plan for factory construction.
“When considering modular or prefab homes, it’s best to think modular from day one,” mentions Built Prefab. “Avoid designing a traditional home with hopes of adapting it for modular construction. Engage industry experts early on to ensure a smoother and more successful project. Planning with a modular mindset from the beginning will save time, resources, and potential headaches, leading to a seamless and efficient homebuilding experience.”
Factory construction: In a climate-controlled factory, skilled workers assemble the modules. Advanced machinery and techniques are used to ensure precision and quality during each stage of construction, from framing and insulation to plumbing and electrical work.
Transportation and assembly: Once the modules are complete, they are carefully transported to the building site using specialized trucks. On-site, a crane is employed to lift and place the modules onto the foundation. The modules are then fastened together, and the home’s final touches are completed.
Finishing touches: After the modules are assembled, the finishing touches are added, including interior and exterior trim work, painting, flooring, and installation of fixtures and appliances.
Inspection and certification: Before the home is handed over to the homebuyer, it undergoes a rigorous inspection process to ensure compliance with local building codes and safety standards. Once approved, the home is ready for occupancy.
“Modular construction offers a fast and customizable way to build your dream home,” shares Affinity Modular Homes. “Adhering to state and local codes, including high wind requirements, modular homes can be placed almost anywhere. With minimal on-site hassles, homeowners can actively participate in the construction process. These homes arrive at the property 85%-90% complete, and you can choose floor plans and special options for a custom touch. Enjoy the benefits of moving into your perfect home within approximately 6 months from start to finish.”
Selecting the perfect location for your modular home
When building a modular home, choosing the right location is paramount to ensure it aligns with your lifestyle and preferences. Consider proximity to amenities like grocery stores, healthcare, schools, and recreational areas to enhance daily life. Evaluate transportation options for easy commuting and access to nearby regions. Examine natural surroundings for a peaceful living environment. Research local regulations to ensure the site is suitable, and look into potential future developments to gauge their impact. By considering these factors, you can find the perfect location that complements your modular home design and enriches your overall living experience.
“When selecting the ideal location for your modular home, consider the benefits of building on vacant land, as it provides customization options, cost savings, and the freedom to choose the perfect spot,” notes Discount Lots. “To make an informed decision, weigh the pros and cons between raw land and developed lots, considering factors like cost, infrastructure, customization possibilities, and potential limitations. By carefully evaluating these aspects, you can ensure your modular home fits seamlessly into your desired location and meets your lifestyle preferences.”
The future of modular homes
As the demand for sustainable and affordable housing grows, modular homes are expected to play a significant role in the future of the housing industry. Several factors contribute to this projection. Continued advancements in construction technology, including 3D printing and robotics, are likely to enhance the efficiency and precision of modular home manufacturing. With an increasing focus on environmental conservation, modular home manufacturers are likely to adopt even more eco-friendly construction materials and practices, further reducing the carbon footprint of these homes.
Moreover, modular homes are no longer limited to simple designs, as architectural firms are exploring creative and stylish options, allowing homeowners to enjoy unique and aesthetically appealing living spaces. Additionally, in regions facing housing shortages, modular homes offer a viable solution to quickly provide affordable and high-quality housing for a growing population. The combination of these factors positions modular homes as a sustainable, innovative, and practical choice for meeting the housing needs of the future.
“The Underserved Mortgage Markets Coalition (UMMC) has long advocated for a rule making on the Equitable Housing Finance Plans and the undersigned coalition members are pleased to see a proposed rule to ensure the longevity of the EHFPs,” said the UMMC, which counts 29 member organizations as part of its collective. “The coalition has long expressed that for the EHFPs to be effective and to continue after this administration, it is critical that FHFA promulgate a rule that will be closely modeled on FHFA’s “Duty to Serve” (DTS) regulation and create a pattern of practice of releasing similarly robust amounts of the EHFP performance data.”
The UMMC and other groups have for months been lobbying FHFA Director Sandra Thompson to discuss formalizing the equitable housing finance plans.
Following multiple revisions, the GSEs in early April announced updates to the equitable housing finance plans, which included Freddie Mac expanding special purpose credit programs, increasing the availability of accessory dwelling units (ADUs) and manufactured homes, as well as the launch of a correspondent lending program to assist smaller financial institutions with access to Freddie Mac’s multifamily financing.
For Fannie Mae, it too is looking to expand the special credit purpose programs geared toward helping people in majority Black and Latino communities. Fannie also touted a “social index” to help translate investor interest in socially conscious investing into savings for underserved borrowers and its series of changes to valuation modernization, which it says will reduce bias, improve accuracy and reduce costs.
Industry stakeholders have 60 days to comment on the proposed rule.
House Numbers, an AI-enabled home wealth management platform, announced on Tuesday that it has raised $3.75 million in pre-seed funding.
Resolute Ventures led the round, with participation from Maven Ventures and Uncommon Capital.
“The U.S. Census reports 62% of U.S. households have home equity, compared to just 25% of whom hold stocks and mutual funds. Yet, homeowners still don’t have a trusted source to optimize the financial opportunities around their greatest long-term asset, their home,” said Jeff Levinsohn, co-founder and CEO of House Numbers.
House Numbers’ goal is to empower homeowners and help them achieve financial independence by providing AI-tailored recommendations for home equity-based products. The platform analyzes homeowners’ financial situations and goals to guide them toward the best product options.
The landscape of financial opportunities available to homeowners has also expanded significantly, encompassing home equity products, mortgage refinancing, short-term rentals, accessory dwelling units (ADUs), home insurance, solar, electrification, and tax optimization.
In turn, navigating this complex terrain can be overwhelming for the average homeowner.
“Most homeowners aren’t aware that there are five different ways to access their home equity, let alone how to analyze which financial product is best suited to meet their goals or find the best product offer from dozens of financial service providers. House Numbers is aiming to address this gap,” Levinsohn said.
Founded in 2021, House Numbers is a home wealth management platform that helps homeowners achieve financial independence by optimizing their largest asset – their home. The platform leverages cutting-edge technology, personal financial information, stated owner-specific goals, and market data to provide highly personalized and actionable opportunities.
This content was generated using AI and was edited by HousingWire’s editors.
Today we’ll do an in-depth review of CrossCountry Mortgage, which as the name implies, is a nationally-licensed mortgage lender that offers its home loan services in all 50 states and the District of Columbia.
Given their name, it’s a good thing they do. The consumer direct mortgage lender is based out of Brecksville, Ohio and has been around since 2003.
Perhaps their biggest claim to fame is the fact that they were the main lender partner of Costco Mortgage. So if you’re a Costco customer, you may have come across them.
Now that the Costco mortgage program has wound down, they’re flying solo, but still expected to originate billions in home loans annually.
Read on to learn more about this direct mortgage lender and their many offerings.
CrossCountry Mortgage Fast Facts
Founded in 2003 by CEO Ronald J. Leonhardt, Jr
Headquarters in Brecksville, Ohio
Nationally licensed direct lender in all 50 states
More than 7,000 employees at over 600 branches
Fannie Mae, Freddie Mac, and Ginnie Mae Approved Seller/Servicer since 2012
Funded $52+ billion in home loans in 2021, own a loan servicing portfolio worth $2.387 billion+
The main mortgage lender partner for Costco (program has since closed)
Interestingly, CrossCountry Mortgage began as a mortgage broker before transforming into a full-scale mortgage lender themselves.
Today, they claim to be a top-3 retail mortgage lender, with aspirations to go even higher over time.
In 2021, they funded roughly $52.4 billion in home loans, with a high concentration of loans originated in California, Florida, Illinois, and Ohio, per HMDA data.
In 2019, they acquired Chicago, IL-based PERL Mortgage, and a year earlier, Chicago-based bemortgage. This has allowed them to expand their footprint, especially in the Midwest.
Most recently (May 2020), they acquired the assets of of New Jersey-based mortgage lender First Choice Loan Services Inc., a Costco Mortgage partner.
They also own subsidiaries BestRateUSA and Veterans Lending Group, the latter being a VA loan lender.
And were recently named to Inc. Magazine’s list of 5000 fastest growing private companies in the United States. Let’s learn more about them.
Official Mortgage Partner of the Cleveland Browns
Aside from their past affiliation with Costco, they are also the Official Mortgage Partner of the Cleveland Browns
During the 2021 season, the CrossCountry Mortgage ‘Dedicated Dawgs’ Sweepstakes will hand out nearly $90,000 in cash and prizes to lucky winners.
The biggest being $50,000 in cash to create your very own “Ultimate Dawg Pound” backyard party.
There will also be weekly prizes, including:
Passes to a Browns game from the CrossCountry Mortgage Landing
Tickets for the company’s “Best Seats in the House” experience
A D.A.W.G. Rover remote controlled cooler
And miscellaneous Cleveland Browns gear
Additionally, they will deliver several fan-friendly experiences to every Cleveland Browns home games, including a Hype Cam, which creates personalized, 360-degree pregame videos that can be shared.
Applying for a Home Loan with CrossCountry Mortgage
First, you fill out a short pre-qualification form on their website. Then a licensed loan officer will contact you within 24 hours to go over eligibility and your loan options.
This will involve a full pre-qualification to ensure you qualify, followed by a consultation to go over loan options and mortgage rates.
You can also use the “find a loan officer” feature to search for a loan officer by name (if you’ve been referred or know someone specific), or search by branch location if you want to speak to someone nearby.
These individuals have their own websites, which have different application forms, some powered by digital mortgage tech company Blend.
So it appears you can apply for a mortgage without actually speaking to anyone. And get personalized rates and compare loan options depending on the branch in question.
Once approved for a loan, there is functionality to upload documents, track loan status, and more.
FastTrack Credit Approval Program
CrossCountry Mortgage offers its FastTrack Credit Approval program, which is designed to give you an edge in a competitive housing market.
First, you apply for a mortgage and provide all the required documentation, such as W-2s, bank statements, and tax returns. Your credit history will be reviewed.
Then you’ll receive two letters – a buyer letter that shows you have Credit Approved status subject to terms and conditions.
And a seller letter (pre-approval letter) you can share with a homeowner to show your approved loan amount, along with the statement that you’ve been Credit Approved.
Even if you haven’t found a home yet, you can clear conditions on your loan that aren’t related to the property itself.
In fact, your loan could close in as few as 7 days after signing a purchase contract, assuming you’ve cleared most of your borrower-specific conditions.
Regardless of how you approach it, they aim to close in 21 days, which is a plus for those buying a home on a tight deadline.
What Home Loan Products Does CrossCountry Mortgage Offer?
Conventional loans (Fannie/Freddie)
Government loans (FHA, USDA, VA)
FHA 203k loans
FHA cash-out refinance
Jumbo loans up to $3 million
Jumbo renovation loans
Streamline refinances for FHA, USDA, and VA
Reverse mortgages
HELOCs
Home equity loans (HELs)
Bridge loans
Buydown loans
ADU loans
First-time home buyer grant programs and down payment assistance
CrossCountry Mortgage offers home purchase loans, mortgage refinances, renovation loans, home equity lines of credit, and reverse mortgages.
In terms of available loan options, they’ve got all the main offerings, including conventional loans, both conforming loans backed by Fannie/Freddie and jumbo loans for those who require larger loan amounts.
Those looking for a government home loan are in luck as well since they offer FHA loans, USDA loans, and VA loans.
If you need a renovation loan, they offer the FHA 203k program and a jumbo renovation loan. Those who prefer a HELOC to make home renovations can also acquire one via CrossCountry Mortgage.
They’ve also got the full slate of streamline refinance programs for all loan types, bridge loans, mortgage buydowns, and even ADU loans for those with accessory dwelling units.
Regarding specific loan programs, their fixed-rate mortgages are available in terms ranging from 10 years to 30 years.
For their adjustable-rate mortgages, 3/1, 5/1, 7/1, and 10/1 ARMs appear to be available.
They also offer reverse mortgages backed by the FHA, known as Home Equity Conversion Mortgages (HECM).
In late 2022, they launched a new closed-end home equity loan (HEL) that allows homeowners to tap their home equity. It is a fixed-rate second mortgage.
And in April 2023, announced the availability of the Freddie Mac BorrowSmart Access program, which offers up to $3,000 toward down payment and/or closing costs.
They’ve since upped the ante with “CCM Smart Start,” which provides first-time home buyers with up to $4,000 to cover down payment costs.
CrossCountry Mortgage Rates and Fees
They do not advertise their mortgage rates on their website. However, you can request a free mortgage rate quote by filling out a short form online.
After you complete it (shouldn’t take more than a minute), a loan officer will contact you to provide quotes and loan options, and next steps to generate a pre-approval if desired.
Because they don’t disclose rates, it’s unclear how competitive they are relative to other mortgage lenders.
Additionally, they don’t disclose lender fees on their website, so again, you’ll need to make contact with a loan officer to find out those details.
CrossCountry Mortgage Reviews
On Zillow, CrossCountry Mortgage has an amazing 9,124 reviews with a rating of 4.97 out of 5 stars.
That’s probably as close to perfection as you can get – the number of reviews is also a good sign because it’s a very large sample size.
Most reviews note that both the interest rate and fees were lower than expected, which gives us a window into their competitiveness.
They also have 3.5 out of 5 stars on the Better Business Bureau website, but it’s only based on 61 customer reviews.
And it’s not as bad as it sounds seeing that most BBB customer ratings are poor because they’re driven by complaints. Consumers don’t typically review companies on the BBB website.
The near-10,000 reviews on Zillow is probably the best gauge of how well-liked they are as a company.
CrossCountry Mortgage Pros and Cons
The Good Stuff
A+ rating with BBB, accredited since 2016
Lots of different loan programs available including second mortgages
Ability to apply online with certain branches
Use Blend technology for the mortgage application
Highly-rated on Zillow by past customers
Licensed in all 50 states and DC
Free mortgage calculators and help articles on website
They service many if not all of the home loans they originate
Offer a Spanish mortgage application and Hispanic-focused website
The Potential Bad Stuff
Do not advertise mortgage rates
No mention of lender fees
Unclear if they charge an application fee (e.g. rate lock fee or upfront appraisal fee)
Welcome to San Diego, a city known for its stunning coastline, year-round sunshine, and vibrant lifestyle. If you’re in the market to buy a luxury home in this captivating city, you’re in for a treat. San Diego’s luxury real estate market offers an array of remarkable features and amenities that cater to the discerning tastes of potential homebuyers.
From breathtaking oceanfront properties with panoramic views to state-of-the-art smart home technologies and exquisite outdoor living spaces, this Redfin article explores the extraordinary features that make luxury homes in San Diego truly stand out. Whether you seek a serene retreat overlooking the Pacific or a modern oasis with the latest in luxury living, join us as we dive into the world of luxury home features in the San Diego housing market, where your dream residence awaits.
Top neighborhoods with luxury home features in San Diego
There are several neighborhoods renowned for their luxury homes and exceptional features in San Diego where homebuyers are willing to pay premium prices. With a median sale price of $4.2 million in May 2023, Rancho Santa Fe offers exclusive estates and sprawling properties, and is highly regarded for its privacy, elegance, and upscale amenities. Del Mar, known for its stunning coastal location, offers luxurious properties that provide breathtaking ocean views and beach access, and a vibrant lifestyle. Homes in Del Mar are also set at premium prices, with a median sale price of nearly $3 million. Lastly, homes in the La Jolla neighborhood, a prestigious coastal community, saw a median sale price of almost $2 million in May 2023. This neighborhood is celebrated for its cliffside estates, panoramic ocean vistas, and proximity to upscale dining and shopping.
6 popular luxury home features in San Diego
1. Seamless indoor-outdoor living spaces
You can expect a seamless fusion of indoor and outdoor spaces in luxury homes in San Diego, creating a harmonious connection with the picturesque surroundings. These homes often feature expansive walls of glass, retractable doors, or large sliders that effortlessly blend interior and exterior areas.
The inviting outdoor spaces are thoughtfully designed with spacious patios, lush landscaping, and resort-style amenities such as swimming pools, outdoor kitchens, and fire pits. Homeowners can enjoy the year-round pleasant climate, hosting gatherings that flow seamlessly from the indoor living areas to the outdoor oasis. Breathtaking views of the Pacific Ocean, rolling hills, or manicured gardens provide a captivating backdrop, further enhancing the indoor-outdoor living experience. These homes redefine luxury living in San Diego, embracing the region’s natural beauty and offering an unparalleled lifestyle that seamlessly integrates with the outdoors.
2. Luxury living on expansive property
Homebuyers exploring expansive properties in San Diego can expect to find an array of luxurious amenities that elevate the living experience to new heights. These properties often boast meticulously landscaped grounds, including sprawling gardens, lush lawns, and serene water features such as fountains or ponds.
Outdoor living spaces are a common highlight, featuring resort-style swimming pools, expansive patios for al fresco dining, and fully equipped outdoor kitchens for entertaining guests. Sports enthusiasts may discover private tennis or basketball courts, while those seeking relaxation might find tranquil spa areas or meditation gardens. Additionally, expansive properties often offer ample space for guesthouses, home gyms, or home offices, providing versatility and room to customize the living space according to individual needs. With their abundant amenities and room for personalization, these properties exemplify the epitome of luxury living in San Diego.
3. Exquisite touches in the primary suite
An updated bathroom is an essential luxury home feature in San Diego, particularly the primary bath, where meticulous attention is paid to luxurious finishes and impeccable details to create a spa-like experience. Spacious walk-in showers with multiple shower heads, soaking tubs, heated floors, and smart technology for lighting and temperature control are common features that enhance the overall bathing experience. In the primary bathroom, it’s common to find both a soaking tub and a shower, providing residents with a serene spa-like experience to unwind and indulge in relaxation.
Separate walk-in closets in the primary suite have become an increasingly sought-after addition in luxury homes. Designed with meticulous attention to detail, these closets are tailored to maximize personal space and organization, offering an abundance of storage for clothing, accessories, and personal belongings. With dedicated sections for each partner, these closets go beyond functionality, creating a sense of luxury and harmony in the home. They provide convenience and ease during daily routines, eliminating the need to share or compromise on storage space. These thoughtfully designed closets often feature built-in shelving, specialized compartments, and ample hanging space, ensuring that every item has its designated place.
4. Sustainable features to minimize carbon footprint
Luxury homes today have evolved to encompass not only opulence and comfort but also sustainability and self-sufficiency to help minimize carbon footprint. These modern residences prioritize eco-conscious living by integrating features like solar panels, energy-efficient appliances, and systems.
By harnessing solar power, homeowners can reduce their reliance on traditional energy sources, and with energy-efficient appliances, including water heaters and HVAC systems, optimize energy usage while maintaining a comfortable living environment. Luxury homes also cater to the growing popularity of electric vehicles by offering car chargers for convenient at-home charging. This integration of self-sufficiency and sustainability has become a highly sought-after feature among potential homebuyers in San Diego, reflecting their increasing awareness and desire for residences that align with their eco-conscious values.
5. Picturesque view of San Diego’s beautiful landscape
Luxury properties in San Diego are often strategically positioned to maximize the beauty of the natural landscape, boasting breathtaking views that encompass the picturesque surroundings of the ocean, mountains, canyons, and open spaces. With expansive windows and thoughtfully designed floor plans, these homes ensure that the captivating scenery is always in view, creating a seamless connection between indoor and outdoor spaces.
6. Accessory Dwelling Units (ADUs)
In the luxury market of San Diego, Accessory Dwelling Units (ADUs) have become a sought-after home feature due to their versatility and investment potential. ADUs offer flexibility for guest accommodations, home offices, or rental income opportunities, enhancing a property’s appeal. They maximize land usage while preserving privacy and independence, contributing to the trend of sustainable living. This additional space can also significantly impact the sale price of a listing in San Diego, reflecting high demand. For example, a recent Redfin Premier listing showcased a captivating compound-like setting, including a main residence, ADU, studio, pool, deck, and manicured garden. Buyers were drawn to the potential for multi-generational living, guest accommodations, home offices, and entertainment, creating a resort-like lifestyle within a private retreat.
As you embark on your search for the perfect home in San Diego, working with a Redfin Premier agent is essential. They’re equipped with the expertise and knowledge to guide you through the process, navigate the San Diego housing market, and buy your dream home.