Financing
Financing

Dream Dadu FAQ

Frequently Asked Questiones

Dream Dadu FAQ

At Dream Dadu, we design, finance, and build exquisite, detached accessory dwelling units (DADUs) with a turn-key approach—from feasibility to final construction. Focused solely on DADUs, we collaborate with award-winning architects and trusted general contractors to deliver timeless living spaces that support aging in place, rental income, and multigenerational living—helping homeowners invest in their future while addressing the housing crisis, one backyard at a time.

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Design & Build

If I pick a design, can I customize it?

Absolutely! The design phase is all about building your DADU your way.

Let’s Schedule A Call to determine how our design process works.

Are Dream DADUs prefabricated?

Not typically. While some components of construction may be pre-built, most of the building happens on-site. Each property is unique. That’s why we do a feasibility visit before construction.

Let’s Schedule A Call

How big is a typical Dream Dadu?

Sizes range from 300–1,500 sq. ft., with most between 700-800 sq. ft. Each local municipality has their own allowances and restrictions.

Let’s Schedule A Call to find out what fits on your property.

Can I build a DADU with a septic system?

Yes, but it requires a septic feasibility study and perc test to make sure your system has the capacity for additional waste. Septic capacity is usually based on the number of bedrooms. We can discuss this more during feasibility. 

Let’s Schedule A Call to determine to see what we can build on your property.

How big of a property do I need to build a Dream Dadu?

It depends on zoning, lot coverage, setbacks, height limits, and more. There’s no one-size-fits-all answer, which is why a feasibility call is the best place to start.

Let’s Schedule A Call

Rentals & Accessibility

Can I use my DADU as an Airbnb?

Yes. A DADU is a detached unit and can be condo-ized for rental purposes.

Let’s Schedule A Call to understand your goals.

Can I build an ADA-accessible Dream Dadu?

Of course! We’d love to create a beautiful, accessible space tailored to your needs.

Let’s Schedule A Call to discuss how this works.

Do I need to live on the property to build a DADU?

Not necessarily and this is dependent on the municipality of your property. In January 2026, owner-occupancy requirements are becoming less strict. If your goal is to build DADU’s for rentals only, there are additional legal considerations and Dream Dadu can help navigate this with you.

Let’s Schedule A Call to discover your options.

Budget & Timelines

How much should I budget to build a Dream Dadu?

While it would be wonderful to give you a “price-in-a-box,” every Dream Dadu we build is site-specific and customized to client’s needs. The cost to complete the project also varies by size, client selections, and design. During the design phase, we sit down with you and review all labor, material, and legal costs of building your Dadu and then we adjust to your budget. We recommend a budget between $350-$650 sq. ft.

Let’s Schedule A Call to discuss Financing options available.

How long does it take to complete a Dream Dadu build?

Most of our DADU’s can be completed under a year. Our past projects are averaging about 9 months. This includes design, condo-izing, permitting, financing and construction.

Let’s Schedule A Call to discuss your Dream Dadu

Financing & Ownership

What does it mean to “condo-ize” a DADU?

Condo-izing splits your main home and your DADU into separate, sellable units. It can boost property value, create affordable ownership options, and even open the door to future profits if you decide to sell. Financing your Dream Dadu will require this.

Let’s Schedule A Call to learn if condo-izing is right for you.

How does the DreamFLEX Agreement work?

Each DreamFLEX loan is tailored to your project as a hard-money loan. Through our long-standing funding partnerships, we shop the best available rate and walk you through the terms before you commit. Throughout construction, you’ll make interest-only monthly payments. Once your project is complete, you have 30 days to secure permanent refinancing — interest-only payments continue during that window until the loan is satisfied. If refinancing doesn’t close within 30 days, the monthly interest rate may increase.

What Type of Financing Should I Use?

Financing with Dream Capital is easier than ever. CLICK HERE to explore different financing options available!

Let’s Schedule A Call to learn more about financing your Dream Dadu.

What’s the best way to finance my Dream DADU?

It depends on how you plan to use your DADU! If you’re planning to rent it out, DreamLOC, DreamFLEX and DreamFLEX+ are all great options—especially since most traditional lenders won’t finance investment properties on homes with conventional mortgages. We solve this by “condoizing” your DADU, giving you legal protection and full ownership of both properties.

If your DADU is for personal use (like a home office or guest suite), DreamLOC is usually the best fit. Many clients also tap into HELOCs based on their home equity, which offer flexible terms and competitive rates. Condoizing can still be a smart move, adding long-term value and flexibility if you ever choose to rent or sell.

Do I need to split my lot to build a DADU?

What exactly is “lot splitting”?

Lot splitting is a new, uniform administrative process in Washington State that lets homeowners or builders divide one existing residential lot (“parent parcel”) into two separate legal lots—an easier way to create additional housing through small-scale infill. 

Why was this created?

Washington passed HB 1096 (2025) to standardize and speed up lot splits statewide. It’s designed to complement the state’s middle housing approach (like duplexes, triplexes, cottage housing) and support Growth Management Act (GMA) goals by enabling more housing in existing neighborhoods. 

Why does lot splitting matter for housing and homeownership?

  • Adds housing supply by unlocking many small infill opportunities in urban areas

  • Expands homeownership options by enabling separate parcels (not just rentals or condos)

  • Supports more attainable homes via smaller lots and potentially lower-cost construction

  • Helps existing homeowners (age in place, house family, earn supplemental income)

  • Encourages low-impact, climate-friendly infill aligned with local planning goals 

  • Increases your property value when you sell by adding inventory to the marketplace

  • Mitigates your risk by protecting your primary home, should you rent out your Dream Dadu

How is this different from older approaches?

Before HB 1096, dividing property typically required subdivision/short plat processes or a condominium, which are described as lengthy and complex. HB 1096 creates a faster administrative option that still maintains oversight. 

What problem does this solve in real projects?

Without a lot split, homeowners/builders often can’t sell the “existing home portion” early to help finance development, because sale may have to wait until final approvals—potentially 2–3 years even under an administrative short plat. Lot splitting can help projects move forward sooner. 

When must cities and counties implement this?

HB 1096 requires all cities, towns, and counties to establish an administrative lot-splitting process. Jurisdictions with comprehensive plan updates due in 2027 adopt rules as part of that update; all others must do so by July 27, 2027. 

What are the key requirements/limits for a lot split under HB 1096?

  • You can create only one new lot (turning one lot into two)

  • Both lots must meet minimum lot size requirements

  • The parent lot must be in a residential zone and not previously created through a lot split

  • Displacement mitigation is required if existing rental housing is demolished or altered

  • Provide water and sewer availability certificates

  • Establish needed access/utility easements before recording (sized for the maximum potential units)

  • Record a condition that the lots cannot be further divided through another lot split (though other subdivision methods may still be possible)

  • Cities may require right-of-way dedication/frontage improvements similar to short plats

  • Cities cannot reduce allowed dwelling units compared to what was permitted before the split

  • Unbuildable lots are ineligible, and cities have certain protections if a created lot later proves unbuildabl

ADU & DADU Regulations in Washington State – City-by-City Guide

ADU & DADU Regulations in Washington State – City-by-City Guide

Planning to build an Accessory Dwelling Unit (ADU) or Detached ADU (DADU) in Washington? Our complete guide breaks down city-specific rules for ADUs and DADUs, including maximum sizes, lot requirements, parking, owner occupancy, and zoning codes. Stay compliant and simplify your permitting process with the latest regulations across WA cities.

Arlington

  • 1 ADU (AADU or DADU) per lot
  • Minimum lot size: 4,200 sq ft
  • Max size: 30% of primary home or 800 sq ft
  • Lot coverage ≤ 35%
  • 1 extra parking space; owner occupancy required
  • Source

Auburn

  • 1 ADU per lot, ≤ 50% of primary unit or 950 sq ft
  • Max 2 bedrooms, 1 exterior entrance (≥10 ft from property line)
  • Owner occupancy required; 1 extra parking space
  • Source

Bellevue

  • 1 AADU per lot (no DADUs)
  • Max size: 40% of primary residence, 300–800 sq ft
  • 1 off-street parking space; owner occupancy required
  • Source

Black Diamond

  • 2 ADUs allowed (1 AADU + 1 DADU)
  • Max DADU: 1,000 sq ft
  • Owner occupancy required; 1 extra parking space
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Bothell

  • 1 ADU per lot
  • Max size: ≤ 2/3 of primary unit or 800 sq ft
  • 1 extra parking space; owner occupancy required
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Burien

  • 2 ADUs allowed (1 AADU + 1 DADU)
  • Max size: AADU 1,000 sq ft, DADU 800 sq ft
  • 1 parking space; no owner occupancy requirement
  • Source

Carnation

  • 1 ADU per lot, max 40% of primary unit or 800 sq ft
  • Max 2 bedrooms; 1 parking space; owner occupancy required
  • Source

Covington

  • 1 ADU per lot; max 1,000 sq ft
  • Owner occupancy required; 1 parking space
  • Source

Des Moines

  • 1 ADU per lot, 350–800 sq ft
  • 1 parking space; owner occupancy required
  • Source

Duvall

  • 1 ADU per lot
  • Max size: DADU 800 sq ft, AADU 1,500 sq ft
  • 1 parking space; owner occupancy required
  • Source

Edmonds

  • 1 AADU per lot (no DADUs)
  • Max size: 40% of primary residence, 800 sq ft
  • 3 parking spaces; owner occupancy required
  • Source

Everett

  • 1 ADU per lot
  • Max size: 1,000 sq ft or 15% of lot area
  • Owner occupancy required
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Federal Way

  • 1 ADU per lot, 300–800 sq ft, max 40% of primary dwelling
  • Max 2 bedrooms; 1 unit must be owner-occupied
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Granite Falls

  • Currently under building moratorium
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Issaquah

  • 1 ADU per lot, max 1,000 sq ft
  • 1 extra parking space required (tandem allowed)
  • Owner or family member must occupy primary or ADU
  • Source

Kenmore

  • 1 ADU per lot
  • DADUs: lots >6,000 sq ft up to 1,500 sq ft; lots <6,000 sq ft up to 600 sq ft
  • AADUs limited to 1,000 sq ft or single floor
  • 6-month owner occupancy required; max height 35 ft / 2 stories
  • Source

Kent

  • 1 ADU per lot
  • DADUs ≤ 800 sq ft or 33% of primary unit; AADUs ≤ 40% of primary unit
  • 1 off-street parking space required; 6-month owner occupancy
  • Source

Kirkland

  • 2 ADUs allowed per lot (1 AADU + 1 DADU or 2 AADUs/DADUs)
  • ADU size ≤ 1,200 sq ft
  • 1 off-street parking space required unless on-street parking or near transit
  • No owner occupancy requirement
  • Source

Lake Forest Park

  • 1 ADU per lot
  • Lots ≥7,200 sq ft; AADUs only on lots <15,000 sq ft
  • Max size: 50% of primary unit or 1,000 sq ft; min 300 sq ft
  • 1 off-street parking space; owner occupancy required
  • Source

Lake Stevens

  • 1 ADU per lot
  • Max size: 50% of primary unit or 800 sq ft
  • 1 extra off-street parking space; owner occupancy required
  • Source

Lynnwood

  • 1 ADU per lot (R-8 zoning); 1 AADU only in R-7
  • Max size: 40% of primary unit or 800 sq ft
  • Bedrooms: 1 if <600 sq ft, 2 if ≥600 sq ft
  • 1 off-street parking space; owner occupancy required
  • Source

Maple Valley

  • 1 ADU per lot
  • Lots <10,000 sq ft allow only AADUs
  • Max size: 50% of primary residence
  • 1 off-street parking space; owner occupancy required
  • Source

Marysville

  • 1 ADU per lot
  • Max size: 35% of primary dwelling
  • 1 off-street parking space; owner occupancy required
  • Temporary suspension of owner occupancy allowed in hardship cases
  • Source

Medina

  • 1 ADU per lot
  • DADUs only in accessory buildings with another permitted use
  • Max size: 1,000 sq ft or 40% of primary dwelling
  • Entry door screened from street
  • 1 extra parking space; owner occupancy required
  • Source

Mercer Island

  • 1 ADU per lot
  • Size: 220–900 sq ft; ≤80% of primary dwelling
  • Parking requirements depend on size
  • Owner or immediate family must occupy primary or ADU
  • Source

Mill Creek

  • 1 ADU per lot
  • Max size: 400–800 sq ft, ≤30% of primary residence
  • 1 extra parking space; owner occupancy required
  • Source

Mukilteo

  • 1 ADU per lot
  • AADUs allowed on lots ≥5,000 sq ft; DADUs ≥10,000 sq ft
  • Max size: 700 sq ft or 60% of primary dwelling
  • Max 1 bedroom; 4 off-street parking spaces (2 per unit)
  • Owner occupancy required
  • Source

Newcastle

  • 1 ADU per lot
  • Max size: 300–1,000 sq ft; ≤40% of primary dwelling
  • One ADU per floor may exceed size limits if needed for efficient use
  • 1 extra parking space; owner occupancy required
  • Source

North Bend

  • 1 ADU per lot
  • Must be in side or rear yard; lots ≥4,000 sq ft
  • Max size: 10% of lot area or 800 sq ft; max 1 bedroom
  • Height ≤25 ft; owner must occupy primary unit
  • Source

Pacific

  • 1 ADU per lot
  • AADU ≤45% of primary dwelling (garage/stairs excluded)
  • DADU: RS-6 ≤800 sq ft, RS-11 ≤1,000 sq ft
  • Parking: 1–2 spaces depending on bedrooms
  • Owner occupancy required
  • Source

Redmond

  • 1 ADU per lot
  • AADU ≤1,500 sq ft; DADU ≤1,000 sq ft or 40% of primary dwelling
  • Neighbors must be notified in writing
  • 1 off-street parking space; owner occupancy required
  • Source

Renton

  • 1 DADU per lot (no AADUs)
  • Size depends on lot area: 600–1,000 sq ft
  • 1–2 parking spaces; owner occupancy required unless CUP granted
  • Source

Sammamish

  • 1 ADU per lot
  • Max size: 1,000 sq ft detached or ≤50% of existing unit if attached
  • No additional parking if ≥4 existing spaces
  • Owner occupancy required
  • Source

SeaTac

  • 1 ADU per lot, min 220 sq ft
  • Detached/added ADUs ≤800 sq ft; within existing structure ≤45% of primary unit
  • 1 off-street parking space
  • Owner must occupy one unit ≥9 months/year
  • Source

Seattle

  • 2 ADUs allowed (2 AADUs or 1 AADU + 1 DADU)
  • Max size: 1,000 sq ft in single-family zones
  • Second unit must meet green building or affordability requirement
  • No parking or owner occupancy requirement
  • Source

Shoreline

  • 1 ADU per lot, ≤50% of main dwelling (interior unit can exceed if separate floor)
  • 1 off-street parking space + 2 for main house (tandem allowed)
  • Fire sprinklers required for DADUs
  • Owner or immediate family must occupy one unit
  • Source

Snohomish

  • 1 ADU per lot, ≤50% of primary floor area or 800 sq ft
  • Must meet city design standards
  • 1 extra parking space (total 3); owner occupancy required
  • Source

Snoqualmie

  • ADU regulations currently updating
  • Residential 2 (R2) zone allows duplexes, triplexes, townhomes, small ADUs
  • Source

Stanwood

  • 1 ADU per lot, ≤50% of primary residence or 900 sq ft
  • Design must match main house
  • 1 extra parking space; owner occupancy required
  • Source

Tukwila

  • 1 ADU per lot
  • DADU: min lot 6,500 sq ft, max 800 sq ft
  • AADU: ≤40% of primary dwelling, max 1,000 sq ft
  • Height limit: 20 ft (25 ft over garage)
  • 1 extra parking space; owner occupancy required
  • Source

Unincorporated King County

  • 1 ADU per lot in single detached dwelling or townhome
  • DADUs allowed: lot ≥3,200 sq ft (urban/rural town) or meets minimum zone area
  • Max ADU: 1,000 sq ft heated/unheated
  • Only one street-facing entrance allowed
  • Owner or immediate family must occupy primary or ADU
  • Source

Unincorporated Snohomish County

  • Inside Urban Growth Areas: 2 ADUs allowed (1 AADU + 1 DADU), up to 1,200 sq ft; no parking or owner occupancy required
  • Outside Urban Growth Areas (rural): 1 ADU per lot; DADU allowed only if minimum lot size met; max 1,200 sq ft; 1 extra parking space required; no owner occupancy required
  • Source

Woodinville

  • 1 ADU per lot
  • DADU ≤50% of primary dwelling
  • 1 extra parking space; owner occupancy required
  • Source