Adu financing options?

[David Maldonado]

Hey y'all,

Anyone know of or have experience financing an ADU? From what I have been researching, their are renovation fixed rate loans like homestyle loans that fund the ADU but don't display the rates on their sites. I built my first 1 bed 1 bath 488 sq ft ADU using a personal loan but the rates were high (11% for 3 years). Just paid itself off from the rental income the ADU brought but I'd rather not go that route as this time I will be building a 2 bed 1 bath 1000 sq foot detached ADU and CA has a solar requirement that will go into affect Jan 2020 and the interest will add up. Expected rental income from that unit is $1700-$1900 (I live in an area in CA where this is a fair price and the demand for ADUs are extremely high).

Also I know some loans require a contractor, but I'd prefer to do some of the work myself.