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ADU Financing

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

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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.

Income Properties

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Room Additions

kitchen-remodel

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CA

Remodel

room-addition

ADUs

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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.

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ADU Regulations

Carlsbad

ADU Site Plans

Encinitas

ADU Site Plans

San Diego

ADU Site Plans

Solana Beach

ADU Site Plans

Financing Solutions

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
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

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
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
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
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
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

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.

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6310 Greenwich Drive, Suite 200 San Diego, CA 92122

Carl Spiteri | NMLS ID 286890

Phone: 619.544.6444

Office: 858.526.3037

eFax: 800.670.0929

Ark-La-Tex Financial Services, LLC NMLS ID 2143

Carl Spiteri | NMLS ID 286890

Ark-La-Tex Financial Services, LLC d/b/a Benchmark Mortgage 5160 Tennyson Pkwy STE 1000, Plano, TX 75024. NMLS ID #2143 (www.nmlsconsumeraccess.org) 972-398-7676. Some products may not be available in all licensed locations. Information, rates, and pricing are subject to change without prior notice at the sole discretion of Ark-La-Tex Financial Services, LLC. All loan programs subject to borrowers meeting appropriate underwriting conditions. This is not a commitment to lend. Other restrictions may apply. (https://benchmark.us)

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