ADU & Remodel Financing – Carl Spiteri

ADU And Remodel Financing

We offer a full portfolio of financing solutions to homeowners specifically for renovations. From remodels, room additions, new construction including ADUs.

Financing an ADU is foundational to create affordable housing and creating financial security. We understand the complexities of construction and the unique characteristics of financing construction projects. Let our team of experts navigate through the complexities of financing an ADU. Our commitment and focus allow us to identify the financial solution that meets your financial goals.

We approach financing from a cost-effective perspective. In order words, what is your lowest overall costs.

Home financing delivers the lowest overall terms and rates. Here is our portfolio of solutions for accessory dwelling units, granny flats, casitas and remodel.

Income Properties

Room Additions

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Remodel

ADU, Granny Flat, Casita

Is An ADU Right For You?

Most homeowners qualify to finance an ADU several financing options are available. One popular option is refinancing your current loan and pulling out equity to finance your ADU. ADU budgets can start out at $80,000 but most will range in $200,000 to $300,000.

Not all homeowners will have sufficient equity for an ADU, then you can consider renovation loans from HUD & Fannie Mae. The key advantage is these loans are based on the future value of the property. Anytime a renovation adds square footage, it’s highly valued and appraised.

Other loans are also available that can be considered: constructions loans, jumbo loans & hard money loans.

Have Questions?

ADU Regulations

Financing Solutions

Cash-out Refinance

Utilize up to 80% equity of your home to fund the ADU. This offers a lower interest rate and terms available in construction

Term	Interest	Owner Occupancy	Fund Control	Renovation Budget Limit
Fixed/Variable	Lower	Yes	No	Equity

HELOC - Home Equity Line of Credit

Home Equity Line of Credit – Allows to take out a supplemental loan based on the equity available. It appears comparable to a credit card. Your payments will vary. Your interest – rate can also vary. The benefit is that it preserves interest on your primary (first) loan. You can accelerate payments if you have available funds.

Term	Interest	Owner Occupancy	Fund Control	Renovation Budget Limit
Adj	Var	Yes	No	Equity

Renovation Loans

Gov’t backed financing that will base construction funds based on the future value of the property.

	Low-down payment	Mort. Ins.	Appraisal	Owner Occupancy	Renovation Budget Limit
FHA – 203k	3.5%	Yes	110%	Req	Future Value
Fannie Mae – Homestyle	5.0%	No > 20% equity	95%	No	Future Value

Jumbo Loans

Allows funding for loans that exceed current loan limits.

Interest Term	Interest	Owner Occupancy	Fund Control	Renovation Budget Limit
Fixed/Var	Custom	2nds only	Yes	Future Value

Construction Loan

Allows to finance new construction. Available as single and two-phase financing.

Term	Interest	Owner Occupancy	Fund Control	Renovation Budget Limit
Fixed/Var	Custom	No	Yes	Future Value

Private Money Loan

These are short-term loans that carry high interest rates. Loan is determined on value of the property. This is a fast turnaround need for renovations. Loans are best suited for real estate investors flippers to renovate a purchased property and then immediately put back on the market for sale.

Term	Interest	Owner Occupancy	Fund Control	Renovation Budget Limit
Fixed	Higher	No	Yes	Future Value

Reverse Mortgage (HECM)

Gov’t back financing to allow cash-out of 80% equity and reside at the property.

Term	Interest	Owner Occupancy	Fund Control	Renovation Budget Limit
Fixed/Variable	Custom	Yes	No	Equity

Custom

Create financing to meet the unique needs of the client and project.

Create Affordable Housing

Create and finance affordable housing for a loved one. It's taking care of family. See how financing creates unmatched affordable housing.

Income & Equity

Learn from the experts, build equity and income with an ADU to offset mortgage payments, build your investment strategy and more.

Retirement Strategy

Leverage your real estate asset to create monthly income with an ADU. Passive income is vital to your retirement strategy. Let our experts with government HECM loans (Reverse mtg) to finance your ADU.

Schedule a Free Consultation

We have a team of professionals to assist every step of the way. From a free initial consultation to financing, planning to construction, we have a coordinated process from an experienced team with you every step of the way. Meet our experts to fully understand your needs. We’ll explore the best financing that meets your financial goals. Our Feasibility will evaluate your site, develop plans, determine budget and timeline to completion. Our expertise and teamwork will come in on time and on budget.