Adu financing options?

[David Maldonado]

Hey y'all,

Anyone know of or have experience financing an ADU? From what I have been researching, their are renovation fixed rate loans like homestyle loans that fund the ADU but don't display the rates on their sites. I built my first 1 bed 1 bath 488 sq ft ADU using a personal loan but the rates were high (11% for 3 years). Just paid itself off from the rental income the ADU brought but I'd rather not go that route as this time I will be building a 2 bed 1 bath 1000 sq foot detached ADU and CA has a solar requirement that will go into affect Jan 2020 and the interest will add up. Expected rental income from that unit is $1700-$1900 (I live in an area in CA where this is a fair price and the demand for ADUs are extremely high).

Also I know some loans require a contractor, but I'd prefer to do some of the work myself.

[Account Closed]

Hi guys, I'm an ADU consultant in the SF Bay Area and can confirm that ONLY detached ADUs will require solar starting in 2020. Great news for those who want to do garage conversions or attached units!