PR Newswire | Nov 22, 2021 08:02AM EST

Options for Accessory Dwelling Units.

11/22 07:00 CST

1st Security Bank Participating in a Pilot Program to Improve Home Financing Options for Accessory Dwelling Units. MOUNTLAKE TERRACE, Wash., Nov. 22, 2021

MOUNTLAKE TERRACE, Wash., Nov. 22, 2021 /PRNewswire/ -- The Home Lending division of 1st Security Bank ("the Bank") announces their participation in a pilot program to improve financing options for accessory dwelling units. If successful in pilot, the Bank expects access to this program to expand across the mortgage industry and help borrowers nationwide.

An accessory dwelling unit, or ADU, may be attached to a house or garage but has its own kitchen, living area, and separate entrance. Also known as a mother-in-law or secondary dwelling unit, when the ADU is used as a rental, income from it can be used to offset the mortgage payment, resulting in a lower housing expense for the homeowner.

"Previously, rental income from an ADU did not count as qualifying income for borrowers," said Donn Costa, Executive Vice President of Home Lending. "This program can significantly increase our borrower's buying power on home purchases and reduce expenses on cash-out refinances."

In large metro areas throughout the country, the ADU is being viewed as a critical method for increasing neighborhood density to support mass transportation, provide multi-generational housing options, increase the availability of affordable rental units, and reduce overall costs for homeowners.

ABOUT 1ST SECURITY BANK OF WASHINGTON1st Security Bank of Washington, member FDIC and Equal Housing Lender, provides loan and deposit services to customers at its twenty-one branches, and mortgage services at each branch as well as lending offices in the greater Puget Sound area and the Tri-Cities. FS Bancorp, Inc., a Washington corporation, is the holding company for the Bank.

MEDIA CONTACTDonna JacobsonVP, Director of MarketingE: donna.jacobson@fsbwa.com

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SOURCE 1st Security Bank