Construction Lending in Oakland, CA (SFH -> Duplex+ADU)
Hi!, I'm the happy owner of a single family home in Oakland, CA that may be ready for conversion into a multi-family home (Duplex+ADU) which requires a long list of things to come together, one of which is financing. The work that could take place with this project would add roughly 1200 sqft on top of the first floor as a second unit (the duplex) and another 1000 sqft as a detached, category 2 ADU. With a rough understanding of construction costs in the bay area, it seems like this project could cost as much as 700k and I'm trying to understand what the right method would be to make this dream a reality.
As of now, most of the banks I've contacted simply don't have a construction loan product, but perhaps I shouldn't be talking to BoA and Wells Fargo for this.
Any help would be greatly appreciated!
-P
Most Popular Reply
I like the move but be sure to keep your long term options open. Once you turn your SFR into a triplex essentially, the property will no longer qualify for Freddie/Fannie conventional loans. So if your plan is to sell at any point (or refi to pull out equity), the value will suffer because your buyer pool is limited. Just something to think about. @Chris Mason can confirm. He's the pro in this arena.