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• An ADU, or Accessory Dwelling Unit, is defined as an additional unit on a residential lot in addition to the main house (or main multi-family building). Recently in Los Angeles County, Orange County and California as a whole, laws and guidelines regarding ADU’s have been modified to allow for more ADU construction as a way to help solve the CA Housing shortage.  The ADU loan program provides purchase and refinance financing for additional dwelling unit construction on owner and non-owner-occupied properties.

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Lending Criteria & Guidelines:

• Eligible states: CA only

• Loan Amounts: $100,000 – $2,500,000+

• Property Type: Single Family – Multi- Family / 1 – 3 ADU’s, OK!

• Loan Type: Business Purpose Ground-up Construction or remodel construction, OK!

• Loan-to-Value: Up to 60%-65% LTV/CLTV on After Repair Value (ARV)

• Terms: 1 to 4 years with Balloon – Interest Only Payments

• Occupancy: Owner Occupied and Non-Owner Occupied – ADU must be a rental

• Underwriting: Equity Driven, Bank Statements, No Tax Returns (other docs apply)

• Property Valuation: Appraisal Required on After-Repair-Value

• Interest Rates: 1sts from 9.99% – 2nds from 12.50%*

• Points & Fees: 3+ Points plus Underwriting & Valuation of $2,995+

• Funds Control: Required – Funds Available if permits in place or not yet

• Good to Know: Must comply with City and State ADU ordinances

• 7 Day Fundings

• Yes, to: Low FICO – Bankruptcy – Notice of Default – Foreign National – Self Employed