Frequently Asked Questions

What is ADU?
An Accessory Dwelling Unit is also known as a granny flat, mother-in-law unit, or backyard cottage.  It is a secondary unit sharing the same lot as the primary residence. 

Can I finance my ADU once construction has begun? 

Ideally it is best to finish the financing arrangements before any on site work has begun.  If work has started before funding your loan, it is possible that the best loan options will not be available.

Can I take advantage of current low rates to pull cash out of my home to build the ADU? 

Absolutely, this in many cases is the best option.

Can I use the value of the home based on my homes value after construction? 

Absolutely, this makes qualifying that much easier.  Not all loan programs allow this, but we will guide you to find the best option.

Can I use a Home Renovation Loan for construction on an ADU?

Yes – Many People use this type of loan for construction of an ADU

Is it possible to finance my ADU with a second mortgage or a HELOC? 

Absolutely, in some cases this is the best option.

My income has been low due to COVID are there loan options for me too? 

Absolutely, depending on your situation there may be stated income loans available. 

What types of ADU’s can be built?
Although there are many different types of ADU’s, there are three most common types. 
An interior ADU is a remodel of the existing dwelling such as the attic or basement.
A detached ADU is a separate unit from the primary dwelling but shares the same lot. 
An attached ADU which is built as an extension attached to the primary dwelling.

How many ADU’s can I have?
Two ADU’s can be built on a multi-family residence lot, provided enough space.

How long does an ADU take to build?
To permit and build can typically take 6-9 months.

How much does it cost to build an ADU?
Costs can start at about $140,000.  Some factors to consider are the site condition, floor design, permits, and accessibility to utilities.  

Does having an ADU increase property value?
Having an ADU, particularly a detached ADU, has the potential to increase the property value.  It also can generate monthly rental income. 

Specialized home renovation loans are available for installing or improving your ADU. 

The cost of an ADU does not have to come out-of-pocket.  We have different financing options available.


Click Apply Now to see what financing options are available.