Hi folks, My primary residence is a SFH in Oakland California and I bought this home knowing that I needed to put some work into it. We need to fix the foundation and I already got a quote.
I also want to convert the basement into an ADU. Total estimate for the remodel cost is around $120K. Are there any platforms that provide remodel loans?
Buffalo, NY · Member since 2018 · 790 posts · 530 votes
1y
Have you spoken to the bank you used to buy the house? Or any other local bank. Since it's your primary, if you have enough equity you should be able to take out a Home Equity Loan for the remodel. They may make you do it in draws as you hit certain milestones.
I am speaking to my primary lender now. But we just bought the house a few months back so there isn't a ton of equity in the house as is. But if we add the ADU and increase the overall sft, the value will definitely go up.
Lender · Austin, TX · Member since 2021 · 447 posts · 441 votes
1y
Just make sure to verify ARV with ADU comps. It is pretty common to do ADUs in the California markets, but just make sure you can refi out of the construction loan by increasing the ARV enough
I am speaking to my primary lender now. But we just bought the house a few months back so there isn't a ton of equity in the house as is. But if we add the ADU and increase the overall sft, the value will definitely go up.
In general hands off single ADU additions in single family zoned areas add less value than the cost of the addition. Developing small units in small counts is not low cost development.
Make sure you use good comps to derive a conservative ARV as if you do not, you will not be able to extract your ADU addition costs via the refinance.
I am speaking to my primary lender now. But we just bought the house a few months back so there isn't a ton of equity in the house as is. But if we add the ADU and increase the overall sft, the value will definitely go up.
In general hands off single ADU additions in single family zoned areas add less value than the cost of the addition. Developing small units in small counts is not low cost development.
Make sure you use good comps to derive a conservative ARV as if you do not, you will not be able to extract your ADU addition costs via the refinance.
Good luck
Thank you!! Do you have any recommendations for any lenders who might support this?
Hi folks, My primary residence is a SFH in Oakland California and I bought this home knowing that I needed to put some work into it. We need to fix the foundation and I already got a quote.
I also want to convert the basement into an ADU. Total estimate for the remodel cost is around $120K. Are there any platforms that provide remodel loans?
Appreciate all guidance and support. Thank you!
I have a few brokers who maybe able to help. Let me know if you are still looking for options.
Hi folks, My primary residence is a SFH in Oakland California and I bought this home knowing that I needed to put some work into it. We need to fix the foundation and I already got a quote.
I also want to convert the basement into an ADU. Total estimate for the remodel cost is around $120K. Are there any platforms that provide remodel loans?
Appreciate all guidance and support. Thank you!
I have a few brokers who maybe able to help. Let me know if you are still looking for options.
Hi Wilson, I am still looking for options, Can you please connect me with them? Thank you!