A common pitch for accessory dwelling units is that building one will add a lot of value to your property.
How much, though, is a bit of a mystery. And that can pose a problem for homeowners looking to build one.
An ADU isn’t just extra square footage — it’s a complete home, with its own kitchen, bathroom and utilities. You can use it to house family members, caregivers, tenants or even yourself, if you decide to downsize and rent out your current home.
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But here’s where things get tricky. You can’t sell your ADU separately, at least not under current state law; instead, it’s just another improvement on your lot, like your main home. If you sell your house, the ADU goes with it.
And when the sale is made, there’s no line in the contract indicating how much the buyer is paying for the ADU. There’s one sale amount for the entire property.
Appraisers say that they estimate the value of an ADU by comparing sales of houses with an accessory unit to other sales in recent months involving houses of similar size, condition and location that don’t have ADUs. But even though ADUs have boomed since the state made it easier to get permits for them in 2017 — more than 20,600 ADUs were built last year alone — there haven’t been many homes with legal ADUs sold. That means appraisers don’t have as much data about comparable sales that they typically have to determine the property value.
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For example, according to Zillow, 642 houses with about 2,000 square feet of living space sold in Los Angeles over the last three months, but only 106 of the listings included an ADU.
That’s why there are different ways to estimate the value of an ADU — one used by property tax officials, others by lenders and home buyers. And for some homeowners, the former will be higher than the latter.
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ADUs and property taxes
Adding an ADU to your lot will raise your property tax bill. Your house won’t be reassessed, tax officials say, but the value of the ADU will be added to the value of the improvements on your lot.
Stephen R. Whitmore, the public information officer for the L.A. County assessor, said the process of determining the ADU’s value is straightforward: “Our staff will determine the cost to build it.” That cost will be tacked onto your property’s current assessment and taxed annually; the county taxes property at a rate of 1%, and local parcel taxes and other levies increase the toll by roughly 0.25%.
So if you have a house valued at $1 million and spend $200,000 to add an ADU, your annual tax bill will increase by about $2,500, from roughly $12,500 to roughly $15,000.
Loans for an ADU
But what is the value of an ADU that hasn’t been built yet? Lenders need a good estimate for this because it affects the size of the loan they’ll be willing to make.
For example, a Federal Housing Administration-backed renovation loan can be up to 97.75% of the value of property after the ADU is finished, and Fannie Mae supports refinances that cover up to 97% of the post-construction value. Other ways to borrow money for an ADU, such as a home equity loan or line of credit, typically set lower loan-to-value limits, but some go up to 90% of the property value with the ADU.
Lenders rely on professional appraisers to estimate the value added by an ADU. And although Fannie Mae and Freddie Mac have issued guidelines for appraising properties with ADUs, they seem more applicable to existing ADUs than planned ones.
Appraisers typically look at comparable sales when valuing homes, as well as rental income when the properties are rented out. For ADUs, though, real estate pros say there’s no standard approach, at least not yet.
“If we had one or two comparables with ADUs … our life would be easy,” said Denis DeSaix of Metrocal Appraisal in Livermore. “Finding that one or two comps is challenging because there hasn’t been enough time for the ADUs to work into the regular transaction flow. Ten years from now, we’ll see a lot of them.”
Meredith Stowers, a loan officer at CrossCountry Mortgage in San Diego, said she’s seen an appraiser assign a value of $0 to a 1,200-square-foot, three-bedroom ADU. Appraisals can be adjusted to reflect the marketability of the property, she said, “but you’ve got to ask Realtors [for input] and do some extra research.”
Anthony Dedousis of Revival Homes, a Los Angeles-based firm that helps homeowners find financing and contractors for their ADU projects, said his company takes a big-data approach to overcome the shortage of ADU sales in individual communities. It collected sales data for single-family homes with ADUs across L.A. County since 2017, then compared it with sales of about 90,000 homes without ADUs. After controlling for factors such as lot size, main house size and ZIP Code, he said, “we find that the typical ADU adds 24% (about $250,000) to the sale price of a single-family home in L.A. County,” with values ranging from 18% to 35% depending on the ADU’s size.
The company uses this statistical model to project the value of a home after an ADU project is completed, which is factored into its lending partner’s calculation of how large a loan to offer. This approach, Dedousis said, makes ADU projects far more feasible for newer homeowners, whose lack of home equity limits their borrowing.
Mortgage Vintage in Newport Beach offers ADU construction loans financed by investors, not traditional lenders, which gives the company more flexibility in its approach to appraisals. Still, its appraisers look at the same things that most appraisers do when valuing property, Chief Executive Sandy MacDougall said: comparable sales, construction costs and potential rental income.
Evolving approaches
As Stowers noted, the shortage of data has led to some conservative appraisals of ADUs. For example, in a discussion about ADU values in Los Angeles on a BiggerPockets forum in 2020 and 2021, real estate pros said appraisals were coming in well below the cost of building an ADU. “Based on conversations I’ve had with loan officers, for every dollar you spend on an ADU, about 55% (55 cents) goes to the appraisal value,” one investor wrote in 2021.
Stowers said she had two clients who purchased a house in Burbank for $1.3 million, then added a $200,000 ADU. After construction, she said, one appraiser valued the property at $1.4 million — essentially, discounting the ADU’s value by 50%. “My appraisers gave it a value of $1.9 million because of the incredible marketability and rental income” that the ADU offered, Stower said, adding that the property was three blocks from Warner Bros. Studios.
“Having said all that,” she added, “usually my appraisers give dollar-for-dollar value” — in other words, they value ADUs according to their construction cost, the same way the county assessor does.
Jun Ho Lee, an appraiser based in San Gabriel, said he typically finds that ADUs add 10% to 20% to a property’s value. But location affects what an ADU is worth, he said.
“Even if it’s the same quality, same materials, same size,” Lee said, “you cannot give the same value to the ADU located in Beverly Hills and located in Compton.”
Like the government agencies that buy mortgages, the lenders that issue them have a lot of control over how ADUs will be valued. And in DeSaix’s view, lenders are becoming increasingly open to alternative ways to demonstrate value and demand.
Real estate agents and brokers are an excellent source of information, he said, because “they are in the market, in the trenches, buying and selling day in and day out.” Their views may be subjective, but if an appraiser talks to enough of them, they’ll probably get “a pretty reliable idea of a value range” for an ADU.
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Bitcoin has practically become synonymous with cryptocurrency, but it’s hardly the only coin option out there. If you’re thinking about investing in crypto (or are already doing it), there are several others worth considering.
Let’s look at eight alternatives to Bitcoin for those seeking out the best cryptocurrencies.
But a note before we dive in: cryptocurrencies are extremely volatile and not recommended over other forms of investments like stocks and bonds. But if you do have the appetite for this kind of high-risk investment, let’s first look at what’s happening in the cryptocurrency space at the moment, before we get into the best cryptocurrencies.
What’s Ahead:
What’s Happening in the World of Cryptocurrency?
As you may have noticed, the prices of cryptocurrency tokens have drastically decreased in recent months — with many investors calling it a crypto crash. Even those coins that are considered the “best” cryptocurrencies have dropped in value.
With recent moves by the U.S Federal Reserve to combat high inflation by raising interest rates, on top of global instability, there has been a knock-on effect that’s played out as decreased valuations and even bankruptcies in crypto. More than a few collapses have shaken the crypto market in the past year.
In May 2022, the collapse of TerraUSD (a stable coin) along with its sister token, Luna, wiped out billions in the cryptocurrency market — about $40 billion, to be exact. As a result, some people lost their life savings and othersbit debated exiting the cryptocurrency space altogether.
Later, with the collapse of massive crypto exchange FTX in November 2022 and a number of firms filing for bankruptcy soon after (including BlockFi and Genesis), the losses continued to pile on.
Even Bitcoin has dropped in value, from its peak at $69,044.77 to hovering around $28,000 (specifically $28,349.25 on March 31st, 2023). And some smaller coins have had even sharper declines.
So, what does this mean for you if you’re considering investing in cryptocurrency?
Even a stable coin isn’t stable.
There’s volatility in the cryptocurrency space.
You shouldn’t risk money in cryptocurrency that you can’t afford to lose.
Read more: 5 Things You Should Know Before Investing in Crypto
8 Alternatives to Bitcoin
With that warning out of the way, let’s look at some alternatives to Bitcoin.
You’ve probably heard plenty of buzz over the years about “meme coins” and random success stories of ordinary folks becoming millionaires through cryptocurrency investing, just by seeking out Bitcoin alternatives.
If that’s your goal, this article isn’t for you. We’re not going to promise you any get-rich-quick coins. Rather, these are coins that have people talking and that may be worth considering if you’re looking to expand your crypto portfolio beyond Bitcoin.
Read more: How To Invest in Cryptocurrency: A Beginner’s Guide
Ethereum (ETH)
The second most popular form of cryptocurrency, Ethereum is an open-source network managed by users, much like Bitcoin.
However, there are also some significant differences. The network operates through “smart contracts” written in computer code that is uploaded to the blockchain which other cryptocurrencies operate through.
Ethereum currently doesn’t sell as high as Bitcoin, with its price (as of March 2023) at $1,641.82.
Why Invest in Ethereum (Or Not)?
Ethereum is one of the safer options to invest in, ranked in the top 10 regarding price and stability.
You can also use it at more places than you may think — and within the next few years, the number of places that accept cryptocurrencies is expected to grow. Ethereum has a large existing network, a wide array of functions, and there’s constant innovation.
It may also be the best alternative to Bitcoin, particularly if you want to diversify away from an all-Bitcoin cryptocurrency portfolio. Ethereum is second only to Bitcoin in market capitalization, at $220.2 billion, compared to $548.4 billion for Bitcoin.
Ripple (XRP)
Many people like the idea of cryptocurrencies but fear their money isn’t safe in an unregulated, online world. Ripple aims to offer some of that safety.
Ripple is a money transfer and currency exchange network that processes transactions globally. And unlike most other cryptocurrencies, Ripple doesn’t need to be “mined.”
Read more: How To Mine Cryptocurrency: An Interview With a Crypto Miner
Ripple also offers fast settlement and low fees and is being used by large financial institutions (unlike other Bitcoin alternatives).
Why Invest in Ripple (Or Not)?
Ripple has been involved in a lawsuit for over a year with the SEC and the price has dropped significantly. Ripple argues it shouldn’t be treated as a security in order to avoid much stricter regulatory scrutiny. The company plans on exploring an initial public offering when the lawsuit is settled at some point in 2023.
That said, Ripple is still one of the top 10 cryptocurrencies (currently at no. 6 based on market cap). But for investment purposes, Ripple should be thought of as a cryptocurrency equivalent to penny stock — which is exactly where it’s trading.
XRP is trading at $0.535524 (as of April 2023) with a drop of over 84% from the all-time high.
But if you believe that Ripple will be a successful payment system, then its low price right now could be a key benefit.
Litecoin (LTC)
Litecoin is often thought of as a close sibling of Bitcoin. Bitcoin and Litecoin work in the same way, but there are a few key features that make them different:
Founder Charlie Lee — The founder of Litecoin is well known, unlike the anonymous creator of Bitcoin.
Speed of transactions — Lee, an engineer, designed the Litecoin system to operate about four times faster than that of Bitcoin. This means that Litecoin can confirm the legitimacy of transactions much more quickly.
Number of coins — Bitcoin has a limit of 21 million coins once all are found, but Litecoin will have 84 million.
Why Invest in Litecoin (Or Not)?
Litecoin is nearly identical to Bitcoin, but transactions are faster — which is one of its biggest draws. However, there has been discussion as to whether this speed makes Litecoin less secure.
Litecoin’s current price is $89.26 (as of April 2023), which is down over 78% from its all-time high.
The potential upside of investing in LTC is that the coin has been around since 2015 and is seen as stable.
Cardano (ADA)
Cardano is a proof-of-stake blockchain platform. It’s intended to be the next generation of the Ethereum network with a flexible blockchain and scalable platform for running smart contracts.
Cardano was introduced as an “Ethereum killer” and a valuable alternative to Bitcoin.
Charles Hoskinson, one of the co-founders of Ethereum, founded Cardano with the intent of being energy-efficient and supporting fast transactions with minimal transaction fees.
Why Invest in Cardano (Or Not)?
It may not be the best time to get into Cardano as the token has seen better days. It’s trading at $0.406295 (as of April 2023), down over 86% from the all-time high.
The upside in investing in Cardano is that it’s more energy-efficient and superior when it comes to smart contracts.
Binance Coin (BNB)
Binance is one of the largest cryptocurrency exchanges and the Binance Coin is the medium of exchange for the entire network. You can use your Binance Coin to trade and pay fees on the Binance cryptocurrency exchange. You can also use BNB on the BNB Chain ecosystem.
Binance Coin is one of the bigger players in the space (top five), with a total market capitalization of about $50 billion — although it’s primarily used to pay fees on the Binance exchange itself.
Read more: Binance.US Review
Why Invest in Binance Coin (Or Not)?
There are two factors that make Binance Coin worth considering. The first is its market capitalization. At over $42 billion and growing, it’s one of the bigger cryptocurrencies available. That’s also an indication it’s gaining acceptance in the marketplace, especially when you consider that it has been around since 2017.
The second factor is that this is a medium of exchange on the largest cryptocurrency exchange (Binance). You can use your Binance Coin to invest in the Binance Smart Chain network through Metamask if you want to get into the decentralized space.
BNB is currently trading at $316.82 (as of April 2023), down over 53% from its all-time high.
Polkadot (DOT)
Polkadot is a protocol that connects different blockchains with each other (like Ethereum and Bitcoin, for example) with the goal of weaving blockchains together. Polkadot is often referred to as a multi-chain network because it can join networks together (unlike Bitcoin).
However, Polkadot is similar to Bitcoin in the sense that it functions as both a token (DOT) and a decentralized exchange.
Polkadot wants to create an even playing field to improve innovation through the different blockchain networks. Polkadot operates by using two blockchains — a main “relay” network for permanent transactions and “para chains” for user-created blockchains.
Why Invest in Polkadot (Or Not)?
Polkadot aims to offer scalability improvements (the number of transactions per second a network can handle) and governance for protocol upgrades or changes.
What makes Polkadot a good investment is that it’s different in the sense that the network can interact with other blockchains.
With a current price of $6.32 (as of April 2023), DOT is down over 88% from its all-time high. On the flip side, the coin is up 134.37% since it started in August of 2020.
Solana (SOL)
Solana is a public and open-source blockchain. Solana is both a form of cryptocurrency and a flexible platform for running decentralized applications. The cryptocurrency SOL is used for staking and paying transaction fees on the Solana network. Solana is focused on making cryptocurrency quicker and more scalable.
Solana has become popular in the DeFi (decentralized finance) and NFT spaces among users looking for alternatives to Ethereum. NFT projects are minted and traded using smart contracts and since Solana supports smart contracts, NFT projects are popping up here.
Solana is a solution for those seeking low-cost and high-speed alternatives to Bitcoin.
Why Invest in Solana (Or Not)?
Popular NFT projects are being built on the Solana blockchain. If you’re someone who believes in NFTs, then you’re going to want to look into the Solana network.
Read more: The Complete Guide To Buying Your First NFT
Solana’s transaction speed and low costs also make it an attractive option for those looking for a Bitcoin alternative.
SOL is down over 92% at $20.73 (as of April 2023) from the all-time high, but it’s up over 4,037% since it was formed in May 2020.
Avalanche (AVAX)
Avalanche is a decentralized, open-source, proof-of-stake blockchain with smart contract functions. Avalanche touts that it’s the fastest smart contracts platform in the entire blockchain industry (from time-to-finality). Avalanche hopes to offer a highly scalable blockchain without compromising decentralization or security.
The Avalanche blockchain uses its own coin, AVAX, to cover transactions on the network.
Why Invest in Avalanche (Or Not)?
Avalanche is worth investing in if you’re looking for something new and different. The token hasn’t been around as long as some of the other forms of cryptocurrency, so it’s not as established yet, but it’s one of the fastest-growing projects.
AVAX is worth $17.60 (as of April 2023) and is down nearly 88% from the all-time high. This is up almost 528% from the day it was formed on December 31, 2020.
The Bottom Line
While Bitcoin may have once been king, there are now plenty of other cryptocurrencies on the market if you want to start investing in the space. Just remember that any coin, no matter how much buzz it’s getting, is susceptible to market fluctuations — both good and bad.
When you’re a smoker, there is such a wide range of insurance company attitudes toward smoking that it pays to find out which ones have good rates for smokers.
For cigar smokers, there are additional criteria that you can meet in order to get a better rate on life insurance.
Occasional Cigar Smoking
To get life insurance for cigar smokers, it certainly pays to look into as many life insurance companies, like Banner Life Insurance, to find one that makes a distinction between cigar and cigarette smoking. Though there is generally little difference between the rates for cigarette and cigar smoker rates if you smoke cigars daily, there are many companies that look at the occasional cigar differently than regular cigar smoking.
Being labeled as a tobacco user is a general label that many insurance companies will give you no matter how often you smoke. However, there are some companies that consider the occasional cigar, such as one per week or per month, in a different category. With this type of life insurance for smokers, you aren’t given the standard tobacco rate that is generally double the non-smoker rate.
When you smoke the occasional cigar, your medical test can still show that you are free from nicotine. If you smoke cigars occasionally, you may be subject to urine or blood testing to ensure that you test nicotine free. You must also disclose that you occasionally smoke cigars when you fill out the application as well as other conditions affecting you health. When applying for life insurance, honestly is always the best policy, even if you only smoke a couple cigars a year, telling the agent will save you time and frustration later.
Some insurance companies offer non-tobacco rates for applicants who smoke the occasional cigar.
Others have special rates just for people who don’t smoke cigarettes and who smoke cigars. Whether that means the occasional cigar or regular cigar smoking will vary with the individual company. However, applicants must generally test negative for nicotine when they are given a urine test in order to get these special rates on life insurance for cigar smokers.
If you’re an occasional cigar smoker (only on special occasions or a couple a month), you may have received unreasonably high monthly premiums. If you’ve received a life insurance quote that made your jaw drop, but it doesn’t have to be this way. You probably just contacted the wrong company.
You need to find an insurance carrier who has a lot of experience working with cigar smokers. Each company is going to use different standards for cigar smokers. It’s important to find the perfect company that works for you.
Aside from finding experienced agents, it’s important that you receive quotes from several companies before you decide on one. More than likely the first quote that you receive from a company isn’t going to be the lowest. Make sure to get several before you pick one. While you could spend hours on the phone answering the same questions over and over, we can do all the work for you. Fill out the simple quote form and we can compile the lowest rates possible.
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A Life Insurance Policy can benefit everyone in the family.
A life insurance policy is the safety net your family deserves. You never want to use it, but better to have it just in case. Just imagine if it wasn’t there. Your family would be falling into a mount of debt.
Once you decide which company is going to fit your needs the best, the next decision is determining how much life insurance you need. It’s important to find the perfect balance of having enough money to cover your family, and not paying too much in monthly premiums. Your plan size is going to be a significant factor in calculating your monthly payments. So, how do you figure out how much you need? There are several different things for you to consider that can help you decide how much life insurance you need. You’ll need to look at how much debt you have and how many people rely on your annual income.
Before you buy a high risk life insurance plan, sit down at look at your debts you would leave behind if you were to die tomorrow (cheery thought, right?). You would add all of it up since the total is a great starting point. A very important point is to make sure to calculate mortgage, car payments, student loans (or student loans you could have in the future), credit card payments, and funeral expenses into your total.
The other thing that you have to look at is how much people rely on your annual income to meet their basic necessities. If you have a spouse and children that use your salary as their main source of support, then losing it can have devastating effects on the family or those who benefit from the policy. If you don’t have anyone other than yourself that uses your income, then you can consider taking out a smaller policy and saving money every month. For example, if your spouse works and your children have already moved out of the house, then a smaller policy is probably a better idea.
You know there is really no magic number regarding how much whole or term life insurance you should purchase, but most experts suggest getting at least ten times your annual salary. This might seem like a little much, but it will give your family enough money.
California is in the midst of a building boom for accessory dwelling units, which accounted for almost one-fifth of the housing units permitted and built in 2022.
The number of unpermitted ADUs already in existence is jaw-dropping too.
Studies done between 2010 and 2020 found that 11% to 66% of the single-family homes in selected parts of Los Angeles, Oakland and Berkeley had unpermitted units. In fact, one researcher who examined the communities between Long Beach and downtown Los Angeles found that more than 75% of the housing units added between 1991 and 2010 were unpermitted. A UCLA professor estimated in 2018 that Los Angeles had at least 50,000 unpermitted secondary units on single-family lots.
Unauthorized ADUs proliferated in large part because many California cities made it well-nigh impossible to get permits for them. Those barriers did nothing to reduce the demand for living spaces, particularly from lower-income households whose members spanned multiple generations. “If people don’t have housing, they will create housing for themselves and their families,” said Renée Schomp, former director of the Napa Sonoma ADU Center.
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But owning an unpermitted ADU carries risks, especially if you rent it out. You’ll face fines, insurance problems and, potentially, lawsuits from tenants.
The incentives for complying may not be enough, though, to persuade you to get the necessary permits. It can take almost as long to get them as it would for a new ADU, and the cost of bringing your unit into compliance can be quite high.
That’s because unpermitted ADUs can have hidden problems in their foundation, framing, wiring and plumbing that can be expensive to fix. “If it’s a gorgeous unit, that doesn’t mean anything,” said Avi Levi of Levi Design Build, a developer who does most of his work these days on ADUs.
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Common compliance issues
One reason people build dwelling units without permits is that the time-consuming process of getting approvals can raise a project’s price tag by thousands of dollars. But with no inspectors to ensure that the work complies with city codes, nothing stops a contractor from falling short of the local standards — inadvertently or not.
“People don’t get it,” Levi said. “When they’re doing work without a permit, they’re basically letting the person that did the job get away with whatever they wanted to get away with.”
Steven Frasher, spokesman for L.A. County Public Works, offered a list by email when asked what problems the county’s inspectors observed most often. “Improper exiting, improper venting of heating devices, undersized wiring, or improper electrical grounding, to name a few, can lead to life safety issues that are both long-term [chronic] or short-term [acute] exposure risks,” Frasher said. “Most people are aware of acute risks such as fire, but they tend to not pay enough attention to the chronic risks such as headaches, nausea, and breathing problems can be caused by unpermitted building materials, poor ventilation, and mold caused by improper construction methods.”
And even if the contractor did everything by the book, that may not be enough to bring your unit into compliance years later. Although a state law passed in 2018 allows local officials to judge your ADU by the building codes that were in place when it was built, they have the discretion to insist that you upgrade to newer, more stringent standards.
a free, comprehensive guidebook for bringing an ADU into compliance, including descriptions of common problems, cost estimates, and the programs certain cities offer to make the process easier.
City of Los Angeles
The city of Los Angeles, for example, requires unpermitted ADUs to comply with the 2022 state building codes and at least two mandates that probably didn’t exist when your ADU was built: the state’s energy efficiency standards and the city’s Green Building codes.
Builders and the Casita Coalition, a housing advocacy group that backs ADUs, outlined eight compliance issues frequently encountered by homeowners seeking permits for existing units:
Foundation: Most ADUs are converted garages that have a concrete slab foundation that is not stable enough for dwellings — and if the garage was built before 1940, they may have no foundation. In addition to a foundation supported by a sufficient number of footings, these units may need a layer of vapor retarder — a feature not required in garages.
Framing: Unpermitted ADUs often are missing some of the structural safety features that dwelling spaces require, such as the full complement of ceiling joists and braced wall panels. Converted garages may also have kept the garage door as an exterior wall, which is a no-no, said Danny Shuster of Los Angeles-based Construction & Consulting Services.
Wiring and plumbing: In 90% of the unpermitted ADUs he’s seen, Levi said, the wiring and plumbing aren’t up to building-code standards. And in Los Angeles, ADUs must have a separate electrical panel and their own water shut-off valve, along with a source of heat that’s not a portable space heater.
Utility connections and meters: Depending on your city’s requirements, you may need to have separate meters for your ADU’s utilities (which you might want anyway for a rental unit). More significantly, jurisdictions have standards for how and where the ADU’s sewer line connects to the main sewer in the street, and unpermitted ADUs rarely comply, Shuster said.
Energy efficiency: The state’s standards for energy efficient buildings, known as Title 24, are designed to cut electricity and gas use by sealing buildings off better from the elements. But they could force you to replace old windows that leak heat.
Emergency egress: Every bedroom must have an alternate way out in case the door is blocked by fire. As a result, you may have to install a bedroom window large enough for an adult to climb out of.
Water heater: If your ADU’s gas water heater is in a bedroom, it will need to be enclosed in a closet that meets state rules. It will also need to be at least five feet from the property line, as will any heating or cooling appliances, Shuster said.
Firewall: Any exterior wall of an ADU that’s less than 5 feet from the property line must be built to suppress fire for at least 1 hour. Unless your ADU was built fairly recently, you’ll probably have to retrofit it with fire-resistant boards on the inside of the wall.
It’s conceivable that your ADU may not even be permittable, thanks to a noncompliant feature that would be prohibitively expensive to fix — for example, a ceiling that’s too low or the lack of a separate entrance. Another issue for converted garages, Shuster said, is that the exterior walls may have been extended to allow for a larger ADU. If the ADU is closer to the property line than current zoning rules allow, he said, only the portion representing the original garage’s footprint will be grandfathered — the walls and roofline for the additional space will have to be moved back. Ouch.
The path to permits
Not too long ago, there was no way to bring an unpermitted ADU into compliance if it violated setback requirements, limits on lot coverage or other zoning rules. If code enforcers cited your unit, you’d probably have to decide whether to return the space to its original use (e.g., a garage) or dismantle it.
Senate Bill 1069, which lawmakers passed in 2016 to make it easier to build ADUs, forced cities to issue permits “for any existing structure that had been or could be converted to an ADU, so that informal units had a path to safety,” Denise Pinkston, president of the Casita Coalition and a key proponent of the bill, said in an email. Now, Pinkston said, the main impediments are the cost of upgrades, the shortage of financing options, and a general mistrust of government, including fear of rent control among ADU owners, she said.
Nevertheless, contractors say they’re being approached more and more frequently by owners of unpermitted ADUs who are thinking about applying for permits. Levi said he gets at least two such calls a week — sometimes from people who were buying or had bought a lot with an unpermitted ADU, but mainly from property owners who had deliberately built units without getting permits.
About 80% of the time, he said, the ADU is a converted garage. And most of the calls are coming from people who’ve already gotten a citation from local authorities or who know they’re about to get one, Levi said.
How to get started
If you own an unpermitted ADU, chances are good that you’re well aware of the problem. Either you decided to forgo permits when you built it; or, if the ADU was on the property when you bought it, the seller’s agent and the reports you received from the inspector and the title insurance company told you that the space wasn’t legal. But if you have any doubt, your local government’s planning and building-and-safety departments will have records of any permits or certificates of occupancy obtained for your ADU. Many cities, including Los Angeles, enable you to do this online.
Seeking permits retroactively for an ADU will put you in an uncomfortable spot, Levi said: Once you reveal to the city that you have a potentially unsafe dwelling, you’ll have to either bring it into compliance or stop using it as a living space — and maybe even demolish it, depending on how severe the safety problems are.
So the first step is to find out as much as you can from your city before outing your noncompliant unit. Some jurisdictions, including San Francisco and Milpitas, will try to help you figure out how much work you’ll have to do to meet current codes before you seek the necessary permits. And a few, such as Santa Cruz County, will allow you to keep renting out the unit without meeting all of today’s building codes, as long as your unit meets health and safety standards.
Pasadena has even offered local homeowners financial assistance to bring existing ADUs up to code through its Second Unit ADU Program, but it’s not taking new applications at the moment. According to the Pasadena Department of Housing’s website, “The application window is tentatively scheduled to open back up in summer 2023.”
The city of Los Angeles offers a preliminary plan check service (for a fee of at least $227) that can identify building and zoning issues in your plans up front, as well as a call center to answer your questions about local codes, Frank Lara of the L.A. Department of Building & Safety said via email. He also said that merely seeking permits won’t cause an ADU owner to be cited for code violations — the city issues citations in response to complaints, not permit applications.
(To ease the path to permits, the L.A. City Council approved a motion in April to allow owners of unpermitted ADUs to get city approvals without first having to return the unit to its original use — for example, turning a converted garage ADU back into a fully permitted garage. The motion also called for the development of an amnesty program for legalizing unpermitted ADUs, although it set no deadline.)
Looking behind the walls
Next, you’ll want to get some professional help (for your project, not for you personally — at least not at this juncture). You’ll need a licensed architect or structural engineer to sign off on your plans and a licensed contractor to do the work, but first you may want to consult with a pro who can give you a rough idea of what your ADU might require. That way you’ll at least know the scale of what you’re getting yourself into.
The process of obtaining permits starts with you submitting for review an “as built” ADU plan that hews closely to the current structure. “The city’s going to give their own comments about what they want us to comply with — what they will allow and what they will not allow,” Levi said, adding that the plans will go through several revisions and reviews before they’re approved.
How long that process takes will depend on whether you’re in a historic preservation overlay zone, an environmentally sensitive area or other locale that requires extra layers of scrutiny, Shuster said, adding, “It could take a few short weeks; it could take months.”
Once the plans are approved — and remember, this hurdle is significantly lower than it used to be — building and safety inspectors will come out to see how much work needs to be done to bring your unit into compliance. This preconstruction inspection is also a deconstruction inspection, as inspectors will want to tear up walls to check the condition of the wiring and plumbing behind them, as well as looking at the footings under the foundation and other important and potentially inadequate features.
Shuster said these inspections play out in one of three ways, the first being that the unit has to be gutted to expose the framing and foundation because the inspector thinks everything’s out of compliance. He’s seen this happen to maybe 10% of the units he’s worked on, and it came as no surprise because they were in such bad shape. The second possibility is that the inspector says the unit appears to be largely in compliance and pokes the minimum number of holes in the walls. That happens less than 10% of the time, Shuster said.
The most common scenario, he said, is that inspectors will say the unit looks OK but still want to look at the foundation and the framing, measure the insulation, inspect the plumbing and piping, check the wiring and the electrical panel. They may start by pointing out four or five locations where they want the frame or foundation exposed, then ask for more based on what they see.
How much is this going to cost?
Shuster said that bringing a converted garage into compliance would cost $20,000 to $30,000 under the best-case scenario, and possibly more than $100,000. Levi pegged the cost of legalizing a garage ADU at $50,000 to $130,000.
The least expensive job is still pretty costly because of the up-front expense of developing plans and getting them approved. The Casita Coalition estimated that the price tag for plans and permits started at $10,000 and went up from there.
In addition, once your ADU is officially on the city’s books, its value will be added to your property tax assessment, increasing your property taxes.
On the other hand, an unpermitted ADU can prove costly too.
It’s not just the prospect of getting hit with one or more citations for code violations if someone reports you to the city. It’s also what happens after the citation is issued.
If you have tenants, the Casita Coalition says, you may have to cover their relocation costs and reimburse them for the rent they’d paid. And even if you aren’t cited by the city, your tenant may sue you for providing seriously substandard housing, potentially collecting extra damages in addition to recovering their rent payments.
Another issue is that your insurer could exclude unpermitted structures from your coverage, said Janet Ruiz, a spokesperson for the Insurance Information Institute. If there’s a fire or some other kind of damage to that property, you could be on the hook for the entire loss.
About The Times Utility Journalism Team
This article is from The Times’ Utility Journalism Team. Our mission is to be essential to the lives of Southern Californians by publishing information that solves problems, answers questions and helps with decision making. We serve audiences in and around Los Angeles — including current Times subscribers and diverse communities that haven’t historically had their needs met by our coverage.
How can we be useful to you and your community? Email utility (at) latimes.com or one of our journalists: Matt Ballinger, Jon Healey, Ada Tseng, Jessica Roy and Karen Garcia.
You may have seen the videos on TikTok promising something that sounds too good to be true: Free cash from the state of California to help you buy your first home. The good news is, that program actually exists! The bad news is, it’s already out of money.
The California Housing Finance Agency launched the California Dream for All Shared Appreciation loan program two weeks ago, offering qualified first-time buyers up to 20% of the purchase price of a house or condominium. The help was available only to households whose earnings were below CalHFA’s income limit, which is $180,000 in Los Angeles County and $235,000 in Orange County.
State lawmakers had set aside $500 million for the program as part of the 2022-23 budget. But a looming fiscal shortfall led Gov. Gavin Newsom to propose a 40% cut, so when CalHFA launched the program late last month, it was allocated only $300 million and expected to assist about 2,300 home buyers.
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On Friday, the CalHFA website announced that all the funds “have been reserved.” If you’re not already in the pipeline for a loan, you’re out of luck — at least for now.
More funds will be available to the program at some point, said Kathy Phillips, CalHFA’s director of communications. “However, we cannot predict whether that will be in the coming months with an additional allocation [from the state budget], or in the coming years as repayments of these original loans come back to be recycled to help additional households,” Phillips said.
She emphasized, “The program was designed to recycle [money for loans]; however, that will not begin until these loans are repaid.”
To be alerted when the program starts up again, sign up for CalHFA updates on the agency’s website.
How it works
The program was unusual in terms of both its structure and the type of loan issued.
The loan, which can be used for a down payment and closing costs, is structured as a second mortgage, which means it isn’t repaid month by month. Nor does it accrue interest the way an ordinary loan does. Instead, when the mortgage is refinanced or the house is sold again, the borrower pays back the original amount of the loan plus 20% of the increase in the home’s value.
If the home is ultimately sold for the same amount it was purchased for or less, the buyer won’t need to pay the additional 20%.
With this type of loan, the effective interest rate is equal to the average annual increase in the home’s value. That’s been about 5% in California over the long term, but the increase varies widely on a year-to-year basis, according to the CalHFA.
“For example, in 2008, real estate values plunged by 35%,” the agency stated. “Conversely, real estate values spiked nearly 40% between 2020 and 2021.”
There is a cap on the amount of the appreciation owed. No matter how much the home increases in value, the borrower will need to pay at most 2.5 times the original loan amount.
To receive a loan, borrowers must complete a home buyer education and counseling course (there are options for online and in-person classes on the CalHFA site) and a free online course specifically for shared appreciation loans.
The other unusual feature is that the program is designed to replenish itself. The loans are “revolving,” which means that when a borrower repays the loan, the money can be loaned again to a new borrower.
CalHFA doesn’t make the loans directly; instead, they are made through private lenders authorized by the state.
Jon Healey, senior editor for the Utility Journalism Team, contributed to this report.
About The Times Utility Journalism Team
This article is from The Times’ Utility Journalism Team. Our mission is to be essential to the lives of Southern Californians by publishing information that solves problems, answers questions and helps with decision making. We serve audiences in and around Los Angeles — including current Times subscribers and diverse communities that haven’t historically had their needs met by our coverage.
How can we be useful to you and your community? Email utility (at) latimes.com or one of our journalists: Matt Ballinger, Jon Healey, Ada Tseng, Jessica Roy and Karen Garcia.
Hoping to increase the housing supply and help families build wealth, the Federal Housing Administration on Thursday proposed several changes to its guidelines that could make it easier to buy a house with an accessory dwelling unit or to build an ADU.
The agency’s proposal would allow lenders to offer renovation loans to build ADUs and consider future rent from the unit when calculating how much a customer can afford to borrow. Under current rules for FHA-backed loans, lenders can consider rental income from duplexes but not ADUs.
The proposal would address one of the main barriers that people with little home equity and low to moderate incomes encounter when they try to get a loan for an ADU. “This is a huge step in helping us actually build ADUs,” said Meredith Stowers, a loan officer at CrossCountry Mortgage in San Diego.
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Other parts of the proposal would allow FHA-backed construction loans to be used to build a house and an ADU.
FHA Commissioner Julia R. Gordon said the agency is trying to advance two important goals with the proposal: enabling more people to own homes that include income-generating property, as the FHA does for duplexes, and increasing the housing supply.
The proposal is just a draft at this point, though, and it could change in response to public input.
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The FHA doesn’t lend money directly; instead, it provides guarantees for loans issued by banks, which increase banks’ willingness to lend and reduces the interest rate charged. The guarantees are available only for loans that stay within the size limits set by the FHA. In Los Angeles County, the maximum for a one-unit property is just under $1.1 million. (The proposal would classify a single-family home with an ADU as a one-unit property.)
Under an FHA-backed renovation loan, homeowners can borrow more than the current value of their homes if the improvements they’re planning would justify it. But the FHA will back loans only if the monthly payments are deemed affordable, which means that they can’t push the borrower’s recurring obligations over a set percentage of the borrower’s income.
That’s why including future rents could make a big difference — increasing borrowers’ income makes it more likely that they’ll be able to borrow enough money to build an ADU, which can easily cost $150,000 to $200,000.
In contrast to the FHA’s proposal, Fannie Mae and Freddie Mac — two giant, federally chartered purchasers of home mortgages — do not support loans that factor in theoretical rental income from a yet-to-be-built ADU. The inability to consider potential rental income “is a massive obstacle in helping my clients obtain loans to build their ADUs,” Stowers said. Most of her clients are using home equity lines of credit to build ADUs, but the FHA’s proposal “would allow us to offer much lower-interest first mortgages” to finance the purchase of a home and the construction of an ADU.
“This is what the vast majority of Californians want,” she said. Many of her clients are families that combine the resources of multiple generations to build compounds consisting of two houses and two ADUs, she said. “Why wouldn’t you support that? These families are building a strong financial foundation, but also social ties that are invaluable.”
Gordon said the lack of historical data about ADUs and the value they add to a property has made them a challenge for the FHA, Fannie and Freddie. “It’s a little bit of a chicken-and-egg problem,” she said — there’s not enough data for lenders to figure out how to underwrite the projects, but without the loans, there’s no way to generate more data.
“To be honest, the easiest thing to do in that situation is always to do nothing.”
The FHA’s proposal seeks to support ADUs the way the agency has supported the construction and purchase of duplexes, but with some extra safeguards. For its rapid online loan evaluations, it would allow lenders to consider only 50% of the fair market rents a new ADU could generate — with duplexes, the limit is 75% — and those rents could constitute no more than 30% of the borrower’s total income when determining how large a loan to issue.
“This is new territory, and that’s why we’re putting this policy on the drafting table to receive public input,” Gordon said.
ADU construction has taken off in California, accounting for 15% of the housing units approved in the state in 2021. But this type of project is starting to be a national phenomenon, Gordon said, as more communities grapple with shortages of affordable housing and the need to increase density.
“It’s my sense that many jurisdictions find that permitting ADUs to be a more palatable political first step in making adjustments to zoning,” she said. “That’s why I do think we will start to see more interest.”
An ADU that can be rented out and appreciate in value over the years also creates a chance to build wealth from generation to generation.
“In a more modest neighborhood, the ability of a household to get into first-time homeownership of both the unit that they’ll be occupying and the unit that has a rental opportunity can be an excellent wealth-building opportunity,” Gordon said. “Many families over the years have successfully increased their own prosperity and really the stability and prosperity of the neighborhood in this way.”
Stowers praised the FHA for moving forward and recognized the agency’s concern about going too far too fast. But she added, “All the agencies have been tiptoeing toward this moment. But my hope is they will tiptoe a lot faster.”
About The Times Utility Journalism Team
This article is from The Times’ Utility Journalism Team. Our mission is to be essential to the lives of Southern Californians by publishing information that solves problems, answers questions and helps with decision making. We serve audiences in and around Los Angeles — including current Times subscribers and diverse communities that haven’t historically had their needs met by our coverage.
How can we be useful to you and your community? Email utility (at) latimes.com or one of our journalists: Matt Ballinger, Jon Healey, Ada Tseng, Jessica Roy and Karen Garcia.
The rise of cryptocurrencies has led to a significant shift in the financial landscape. As crypto gains popularity, many financial institutions are adapting to this change by offering specialized banking services to accommodate crypto transactions.
This article explores the best crypto-friendly banks, explaining why they are considered top choices in the ever-evolving crypto space.
15 Best Crypto-Friendly Banks
Here are the top crypto-friendly banks and banking services providers, each offering a unique set of services tailored to the needs of cryptocurrency enthusiasts.
1. Cash App
Among its many features, Cash App allows users to buy Bitcoin and instantly withdraw funds to personal wallets.
Partnerships with banks such as Sutton Bank and Lincoln Savings Bank enable Cash App to provide banking services. This collaboration between Cash App and crypto-friendly banks ensures that customers have a convenient and secure way to manage their crypto transactions.
Sutton Bank also issues the Fold Visa® Prepaid Card, which allows you to earn Bitcoin on every purchase.
See also: How Does Cash App Work?
2. Revolut
Revolut is a UK-based fintech company that was founded in 2020. It has quickly become a major banking player in the UK, Europe, and the US, as well as a top crypto-friendly bank. Their user-friendly mobile app lets customers easily buy cryptocurrencies like Bitcoin and manage their digital assets. The app also features automatic buy orders that activate based on certain market conditions, making the crypto investment process even smoother.
What sets Revolut apart from competitors is the variety of crypto-related services they offer. Customers can stake select crypto assets, make off-chain transactions between users, and pay bills using crypto through automatic conversion to fiat currency.
With over 50 cryptocurrencies on the platform and plans to expand, Revolut is dedicated to staying ahead in the digital currency world. Although there are transaction fees for crypto payments, users can reduce these fees with account upgrades. Revolut’s upcoming launch of its native coin, RevCoin, highlights their commitment to providing a diverse and dynamic crypto banking experience for their growing customer base.
3. Quontic
Quontic is the first online bank to offer a rewards checking account that allows you to earn Bitcoin. With its innovative Bitcoin Rewards Checking account, users can easily integrate crypto into their everyday banking experience. Quontic only supports Bitcoin. However, its unique offering makes it a top choice for those looking to capitalize on the increasing prominence of digital currencies.
The Bitcoin Rewards Checking account offered by Quontic stands out due to its 1.50% rewards on all Point of Sale (POS) transactions made with the associated debit card. These rewards are paid out in Bitcoin, allowing users to accumulate the popular cryptocurrency as they make everyday purchases. Furthermore, the account acts as a secure wallet for users to store their Bitcoin, providing a seamless banking experience for crypto enthusiasts.
This FDIC-insured bank account requires a minimum opening deposit of $500 and is not available in Hawaii and North Carolina.
4. SoFi
SoFi is an innovative financial institution that has embraced the crypto revolution. Through its SoFi Invest platform, customers can trade crypto and access educational resources to learn about digital currencies.
With just a $10 minimum investment, users can start trading Bitcoin, Ethereum, Dogecoin, Cardano, and over 20 other coins on a platform available 24/7. Users can trade cryptocurrencies alongside stocks, fractional shares, and ETFs within the SoFi app, making it an all-in-one investment platform.
SoFi takes security seriously and offers a range of tools to protect your crypto holdings from theft. These include two-factor authentication, SSL encryption, partnering with trusted exchanges like Coinbase for transactions, and not sharing personal information with trading partners or custodians. This ensures that your investments are safe and secure on the platform.
The SoFi app also provides a wealth of educational resources, such as their Crypto Guide for Beginners, Crypto Glossary, and Guide to Crypto Staking, to help you make informed investment decisions. Keep in mind that due to its volatility, crypto carries a higher degree of risk compared to traditional investments.
Crypto trading on SoFi Invest is subject to a 1.25% markup on crypto transactions, which is added to the market price from the exchange. While there are no plans to allow transfers between SoFi Invest accounts and external wallets at this time, the platform’s focus on security and convenience makes it an attractive option for those interested in trading crypto.
5. Vast Bank
Vast Bank has made history as the first full-service national bank to provide customers with the ability to buy, sell, and hold cryptocurrencies. Through an intuitive mobile banking app, users can access both a checking account with a competitive 2.65% annual percentage yield (APY) and a dedicated crypto account.
As a nationally chartered and federally regulated U.S. bank, Vast Bank ensures a high level of security and reliability for its customers. By using the Vast Crypto Banking app, users can easily deposit USD into their checking account, purchase cryptocurrencies, and safely store their crypto alongside their fiat funds.
This crypto bank currently supports a wide range of popular cryptocurrencies. Among them are Bitcoin (BTC), Ethereum (ETH), Filecoin (FIL), Cosmos (ATOM), Chainlink (LINK), Cardano (ADA), Litecoin (LTC), Aave (AAVE), Bitcoin Cash (BCH), Orchid (OXT), Tezos (XTZ), and Algorand (ALGO).
Vast Bank offers the convenience and safety of traditional banking, such as FDIC insurance for checking accounts, a debit card with access to 56,000 free ATMs worldwide, account transfers, bill pay, and mobile deposits. However, it is important to note that digital assets held in the crypto account are not insured by any government entities, including FDIC or SIPC.
6. Wirex
Wirex is a standout in the world of crypto-friendly banks, offering users a seamless banking experience that supports both fiat currencies and cryptocurrencies. Available in 130 countries and boasting over 3.5 million users worldwide, Wirex provides a multi-currency account and a Visa card for convenient fiat payments.
One of the main attractions of Wirex is its generous savings interest rates, which reach up to 6% for cryptocurrencies such as BTC, ETH, and LTC. For those who prefer to save in fiat currencies like USD, AUD, HKD, or DAI, an impressive 12% interest rate is available. Additionally, users can earn an extra 4% interest when saving in WXT, Wirex’s native token.
Built on both Ethereum and Stellar blockchains, WXT offers exceptional performance and versatility within the decentralized finance (DeFi) sector. Wirex rewards its users with up to 4% WXT cashback each time they use their card for in-store or online purchases. The multicurrency card allows for hassle-free payments when traveling abroad, automatically converting to the local currency with no exchange fees, and offering savings of up to 3% on international transactions.
Beyond being a Bitcoin-friendly bank, Wirex offers a wallet app that supports over 100 coins and includes DeFi and NFT capabilities. This combination of features makes Wirex an excellent choice for those seeking a comprehensive and crypto-friendly banking experience.
7. Ally Bank
Ally Bank is an online bank that has embraced the crypto revolution, offering an array of services to support digital assets. Some notable features from Ally’s website include:
Crypto trusts: Ally offers private trusts that invest in and track the price of specific cryptocurrencies, allowing customers to indirectly trade them as they would a stock.
Bitcoin futures: Ally provides access to exchange-traded funds (ETFs) that invest in the purchase of bitcoin futures contracts. This allows customers to gain exposure by speculating on the future price of Bitcoin without directly owning it.
Crypto stocks: Ally enables customers to invest in publicly traded companies that buy and hold cryptocurrency. Buying shares of these stocks provide indirect exposure to crypto.
Ally Bank’s crypto trading services on the Ally Invest platform, integration with popular cryptocurrency exchanges, and digital asset storage and management make it a top choice for crypto enthusiasts seeking a crypto-friendly bank.
8. BankProv
BankProv is a forward-thinking US financial institution that provides a range of services, including business banking, cash management, personal banking, and cryptocurrency offerings. Embracing modern technologies, this crypto bank utilizes API banking, the ProvXchange network, and specializes in lending.
Its support for various digital assets ensures that customers can access a diverse range of investment options, making it a strong contender among crypto banks. Customers can enjoy real-time transactions through the ProvXchange network, while the API integration allows for seamless interaction with various platforms and software solutions.
BankProv provides crypto-backed loans and credit lines for organizations secured by Bitcoin or Ether, as well as equipment and infrastructure loans for crypto mining operations. Additionally, Bitcoin ATM operators can take advantage of secure cash vault services, expedited money transfers, and other perks tailored to businesses operating within the crypto sector.
9. Juno
Established in 2019, Juno is a fintech company offering a digital banking platform with hybrid accounts for managing both cash and cryptocurrencies. Despite not being a traditional bank, Juno’s exceptional services make it a top contender for cryptocurrency investments.
Juno enables users to purchase a range of popular cryptocurrencies without fees, and provides two types of checking accounts: Basic and Metal. The Basic account is free with a $5,000 daily funding limit, while the Metal account, free with monthly qualifying deposits of $250 or more, offers a $25,000 daily limit and up to six times higher savings.
Bonus rewards are a highlight of Juno’s offerings, with users earning up to 5% on cash deposits and yearly cashback for payments with cash or crypto. The JCOIN Loyalty Program allows customers to earn tokens and redeem them for exclusive discounts and cashback boosts. New users can benefit from a welcome offer, which includes bonuses for initial deposits, trades, and referrals.
Free cash withdrawals are available at Allpoint and MoneyPass® ATMs, with additional out-of-network withdrawals for both account types. Juno’s mobile banking app is compatible with iOS and Android, supporting Apple Pay, Google Pay, Samsung Pay, and debit cards. The platform also offers the unique feature of converting paychecks into crypto through partnerships with over 500 payroll providers, allowing users to automate their investments seamlessly.
10. Monzo
Monzo is an innovative online-only bank that has gained popularity in the UK for its modern approach to banking. More recently, Monzo has expanded its services to accept applications from US customers, broadening its reach in the financial market.
With a Monzo account, customers can manage all their bank accounts, including non-Monzo accounts, on a single dashboard through the Monzo app. While the bank itself does not support crypto trading, users can still invest their Monzo account funds into cryptocurrencies through crypto exchanges like Coinbase and Crypto.com. This feature provides Monzo users with indirect exposure to cryptocurrency while still enjoying the convenience and security of a modern bank.
11. Axos Bank
Axos Bank, a crypto-friendly institution, started providing its commercial banking clients with TassatPay access in May 2022. TassatPay is a private, permissioned blockchain-based digital payments platform that enables 24/7 real-time payment capabilities and has processed over $400 billion in transactions. This platform is endorsed by a primary bank regulator.
Axos also offers exposure to various crypto-related exchange-traded funds (ETFs). These include the Bitwise 10 Crypto Index Fund (BITW), Bitwise Crypto Industry Innovation ETF (BITQ), ProShares Bitcoin Strategy ETF (BITO), and ProShares Short Bitcoin Strategy ETF (BITI), among others.
12. Standard Chartered Bank
Standard Chartered Bank has demonstrated a strong interest in cryptocurrencies and blockchain technology, regularly conducting research and sharing insights on digital currencies. Recognizing the growing demand in the market, Standard Chartered is launching a crypto exchange and brokerage service to provide its customers with access to digital assets.
The bank’s direct crypto trading and investment services are still in development. However, their commitment to staying informed about the latest trends in the digital currency market and taking steps to launch new services indicates their growing involvement in the crypto space.
13. USAA
USAA, a financial institution dedicated to serving current and former military personnel and their families, provides a range of tailored financial products and services. Among these offerings is an integration with Coinbase, a leading cryptocurrency exchange.
Through this partnership, USAA customers can conveniently link their Coinbase accounts to their USAA portal, enabling them to easily monitor their digital asset balances and track transactions. This feature streamlines the process of staying informed about one’s cryptocurrency holdings and activity, offering an added layer of convenience for USAA members.
14. Fidor
Fidor is a pioneering online bank headquartered in Munich, Germany. It offers innovative banking services designed to support digital assets. Its integration with popular cryptocurrency exchanges and crypto wallet services makes it an ideal choice for those looking for a crypto-friendly bank. Additionally, Fidor provides support for ICO and token sales, giving customers access to new and emerging cryptocurrencies.
15. PayPal
Although PayPal is not a bank, it offers various banking services and has expanded its support for cryptocurrency in recent years. PayPal enables users to buy, sell, and hold cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.
By partnering with Paxos Trust Company, a regulated provider of cryptocurrency products and services, PayPal ensures a secure and compliant experience for its customers. While it does not offer the full range of services that traditional banks do, PayPal’s support for crypto makes it an appealing choice for those who want to manage their cryptocurrencies alongside other financial transactions.
Bottom Line
The increasing popularity of cryptocurrency has led to a growing number of crypto-friendly banks, offering a range of services to accommodate the unique needs of digital asset users. These banks provide an array of services, from crypto trading and custody to debit cards and loans backed by crypto.
As the crypto industry continues to evolve, it’s crucial to stay informed and choose the best crypto-friendly bank to suit your needs. With so many crypto-friendly banks available, you can now manage your crypto alongside traditional banking services, providing a seamless and efficient way to navigate the world of cryptocurrencies.
Frequently Asked Questions
What makes a bank crypto-friendly?
A crypto-friendly bank is one that supports and facilitates cryptocurrency transactions, storage, and trading. These banks typically offer a range of services tailored to the needs of digital asset users, such as integration with popular crypto platforms, crypto-backed loans, and the ability to spend crypto using a debit card.
Can I store my cryptocurrencies in a traditional bank account?
While some banks offer crypto-friendly services, cryptocurrencies are typically stored in digital wallets rather than traditional bank accounts. However, many crypto-friendly banks provide integration with popular crypto wallets and exchanges, allowing you to manage your crypto alongside your fiat currency.
Are crypto-friendly banks safe and secure?
Many crypto-friendly banks are FDIC-insured and follow strict regulatory requirements to ensure the security of your assets. It’s essential to research each bank’s security measures, such as two-factor authentication, encryption, and secure storage of crypto before choosing a crypto-friendly bank.
How do I choose the best crypto-friendly bank for my needs?
To choose the best crypto-friendly bank for your needs, consider the range of services offered, the bank’s reputation, and any fees associated with their services. You may also want to look for banks that provide educational resources, customer support, and a user-friendly platform for managing your crypto.
Can I use a debit card to spend my cryptocurrencies?
Some crypto-friendly banks and financial service providers offer debit cards that allow you to spend your crypto just like traditional fiat currency. These cards typically convert your cryptocurrencies to the local currency at the point of sale, making it convenient to use crypto for everyday transactions.
Do crypto-friendly banks offer loans and credit products?
Some crypto-friendly banks offer crypto-backed loans and lines of credit. These products allow you to leverage your crypto without selling it, providing greater financial flexibility for crypto users.
Our semi-regular series on motherhood is back today and I’m particularly excited about this post. While we’ve tackled weighty motherhood-related topics in past posts (breast feeding, co-parenting, self-care, the election) this post is touch different – because we’re talking about books!
Now some moms might be sharing their favorite parenting books, but since I’m always on the hunt for good children’s books (and haven’t found the time to actually read any parenting ones yet – whoops) I’m focusing on books for the littles. Because they really are books for us too. We’re the ones reading them after all!
Surely, the world of children’s books is nearly endless but some books really do stand out from the crowd. And my definition of good is not as straightforward as it sounds. To classify a kid’s book as worthy it has to be visually appealing with lovely illustrations, have a truly good story, be well written (for the most part) and not drive me absolutely bat-sh** to read it for the 1,000th time. I’m tellin’ ya, it’s a tough bar. Pete the Cat does not make the cut. But I’ve managed to begin building a collection of kids books that both I and my kiddo equally adore. To the point where he has half of them nearly memorized. And wants to read each a minimum of three times in a row, stretching evening storytime into a freaking hour, but I digress. Because these books don’t suck, I’m ready and willing to do it.
To remind, I now have a toddler one my hands, so these are not board books. He’s just trustworthy enough to flip through the pages on his own. While I’ve found some good board books I love, classics like Go Dogs Go and Brown Bear, Brown Bear, I haven’t found as many board books that I also find truly compelling. If anyone has any recs, I’d love to see them!
1. Almost an Animal Alphabet by Katie Viggers. This alphabet book takes the ABCs to another level. Charming illustrations, actually interesting information about animals and a hidden joke or two make me smile every time we read this book.
2. Ish by Peter H. Reynolds. Ish might just be my favorite children’s book I’ve read thus far. A truly sweet story about a little boy who loves to draw, but his joy is stymied when he’s teased. But through a lesson, from a younger sister no less, little Ramon finds his love of art again. Delightful illustrations and great life lessons make this book a true treasures.
3. Home by Carson Ellis Home is a wonderful visual story about the definition of just that, home. Be it a nest, an apartment, a pasture or wigwams or boats, this book celebrates how and where all beings live. The illustrations soar above my bar and the diversity of places keep you guessing and the little delighted. It’s a winner.
4. I Want My Hat Back by Jon Klassen. If you’re looking for a book that will crack you up virtually every time you read it, I Want My Hat Back is certainly one. The humor is most definitely adult, but the illustrations keep the kiddos engaged. They might not get the joke in the end, but that almost makes it more fun. This one is also short. Always a bonus when wine is calling. (am I bad mom??)
5. Iggy Peck Architect by Andrea Beaty and David Roberts. If books that rhyme start to make you crazy after a while, Iggy Peck will save you. While written in verse, the story of a little boy who falls in love with architecture is witty, entertaining, and truly fun to read. You’ll love the pictures, you’ll love the message. There are also sister books, Ada Twist Scientist, and Rosie Revere Engineer are equally great.
6. I’d Know You Anywhere My Love by Nancy Tillman. This story is about a mother’s love for her children, but told through eyes of a child playing make believe. If your little loves animals this is a perfect book. It communicates a monther’s devotion while also empowering the child to use their imagination. It also introduces uncommon animals like the Blue Footed Booby. I just adore it.
7. We Found a Hat by Jon Klassen. This is the only book on my list from the same author that I mentioned before. The language in these books is so simple (would be good for early readers). The illustrations are a crack up. And there’s another wonderfully adult joke at the end. It’s a gem.
8. The Wonderful Things You Will Be by Emily Winfeld Martin. This is another uplifting little tale about parents’ love for their children. I love the modern, dare I say hipster-esque illustrations. There are great messages for littles about caring, empathy, creativity and joy. There’s a fun little flip out section that makes my little guy say wow. It’s got all the pieces you need for a book both they and you’ll love.
I’m so excited to be raising a little reader. There is nothing more satisfying then seeing my little plop down and pick up a book all on his own. Or recite snippets of the books we read frequently. Books truly do open a child’s mind, inspire, teach and entertain.
I can’t wait to add even more to my little guy’s library with all the other Mamas’ recommendations! Check them out below.
The Refined Woman / Ave Styles / Sacramento Street / The Life Styled / The Effortless Chic / Freutcake / Sarah Sherman Samuel
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