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Updated about 4 years ago on . Most recent reply
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Financing an ADU in Oakland, CA
Hi! I'm finally, after months and months of waiting, coming to the end stage of receiving permits for a 1000 sqft, 3br/2ba, detached ADU in deep east oakland. As I go through this process, as a total newbie, i'm starting to realize I'm not equipped to understand what the the somewhat classic lending scenario look like for this kind of work. I'd fully anticipate the cost of this project to be around 300k all-in and I'm keen to understand how people are financing accessory dwelling units around the country, in California, and certainly in the bay area.
I'm also very keen to understand how these ADUs are priced in a refi scenario. It's super unclear what an ADU is worth, but in my case the ADU will likely be built to a higher standard than the main structure...
Looking forward to getting the ball moving and definitely looking forward to understanding how people finance these kinds of projects.
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@Pavan Gupta Fannie Mae Homestyle allows for construction of detached ADUs. The loan limit is $822,375 in Alameda county for 2021 and the LTV may be based on the "future value" of the property after adding the ADU, which will be based on appraisals. The product works for primary homes, second homes and investment properties.