An Accessory Dwelling Unit (ADU) is a secondary housing unit that can be built on the same lot as a primary residential property. ADUs can take various forms, including detached units, garage conversions, basement apartments, or additions to the primary home. They provide additional living space, often used for rental income, housing family members, or increasing the property’s value.

For Homeowners: If you’re considering an ADU, financing can be a significant part of your planning. Our loan office specializes in providing tailored loan solutions to help you fund the construction of your ADU, making it easier to add this valuable asset to your property.

To qualify for an ADU, you generally need to meet local zoning and building code requirements. Key factors include:

• Zoning Regulations: Your property must be in a zone that permits ADUs. Local guidelines often specify size, height, and placement restrictions for the unit.
• Property Size and Setbacks: Adequate space on your lot and compliance with setback requirements are essential.
• Utility Access: The ADU must have access to necessary utilities like water, sewage, and electricity.
• Owner-Occupancy Requirements: Some areas require that the property owner lives on-site, either in the primary residence or the ADU.

For Financing: Qualifying for an ADU loan typically involves assessing your creditworthiness, the equity in your property, and your ability to repay the loan. Our loan products are designed to be flexible, helping you navigate these requirements with ease.

The process of planning, designing, permitting, and constructing an ADU generally takes 6 months to 1 year. Here’s a breakdown:

• Planning and Design: 1-3 months, involving working with architects and obtaining preliminary approvals.
• Permitting: 2-4 months, required to secure the necessary permits from local authorities.
• Construction: 3-6 months, depending on the complexity and scope of the project.

For Loan Processing: The loan application and approval process for an ADU loan can typically be completed within a few weeks. Our loan office works closely with you to streamline the financing process, ensuring that funds are available when you need them to keep your project on track.

Note: Delays in the overall ADU process can occur due to permit issues, contractor availability, or unexpected construction challenges, but our financing solutions are designed to be flexible and adapt to your project’s needs.

This option allows you to qualify for financing based on the increased value of your home after renovations, giving you access to more funds compared to traditional loans based on current value.

Yes! With our combined loan option, you can purchase a home and fund ADU construction simultaneously, streamlining the process with a low down payment.

Refinancing with a future value loan lets you leverage your home’s projected equity after the ADU is complete, providing higher borrowing power and flexible funding for construction.

While renovations typically boost property value, there’s a small risk the market or project outcomes may not meet expectations. Our experts help you plan wisely to minimize this possibility.

Eligibility depends on factors like local regulations, property zoning, and the scope of the ADU project. We can help determine whether your plans meet the requirements.

To qualify, you’ll need a detailed renovation plan and appraisal to estimate your home’s value post-renovation. Our team will guide you through the process step by step.

Construction loans are for building entirely new structures, while renovation loans (like ours) cover projects to improve or expand existing properties, such as adding an ADU.

Yes! With options like HELOCs, you can draw funds as needed for each stage of the ADU construction, ensuring flexibility and control over your financing.

ADU costs vary based on size, design, location, and materials. Our team can help you estimate costs and align your financing options with your budget.

The timeline can vary depending on the loan type and your specific circumstances. On average, you can expect the process to take 30-45 days from application to funding.

Yes, in many cases, projected rental income from an ADU can be factored into your loan application, increasing your borrowing power.

Eligibility requirements, including credit score minimums, depend on the loan type and lender. We’ll work with you to explore the best options based on your financial profile.

Most lenders require proof that your ADU project complies with local building codes and zoning regulations, so permits are often necessary before funding.

Yes, financing is available for both types. Detached ADUs typically require more funding, but we offer flexible solutions tailored to your project needs.

If you sell your home, the added value from the ADU is reflected in your property’s overall sale price, which could result in a significant return on your investment.

Tax benefits depend on your location and whether the ADU is used for personal or rental purposes. Consult with a tax advisor to understand potential deductions or incentives.

Yes, we offer options like our “Single Loan, Low Down Payment” plan to help new homeowners fund ADU construction immediately after purchasing their home.

An appraisal is conducted based on your renovation plans to estimate the value of your home once the ADU or other projects are complete.

Garage conversions, prefabricated units, or small detached ADUs are often more cost-effective compared to larger, custom-built units. We can help you explore financing options for any ADU type.

Yes, many financing options allow you to bundle multiple home improvement projects, including ADUs, into a single loan for convenience and cost efficiency.