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Updated over 3 years ago on . Most recent reply
Funding for 2 unit ADU project on RM1-1 San Diego city
Hi BP Community,
I have a RM1-1 zoned property in San Diego city. I know I'm allowed to construct to 2 ADU's on it. I want to do a ground up construction of 2 ADU's on top of each other. I have questions around financing.
I'm expecting a total hard and soft costs to be close 275K - 325K for this project. Trying to finance most of the cost. All will be permitted and all work will be done via licensed general contractor.
- Given I have purchased the property 6 months ago, I do not expect HELOC and Cash-out Refinance to cover a significant amount
- Renovation loan under Freddie and Fannie only allows construction of one ADU on the property and hence that is also not an option in my opinion.
- So I need references of lenders in San Diego or California area who will provide construction to permanent loans for such a project.
Also open to other suggestions and options that I'm not thinking about. Thank you!
Most Popular Reply

City of SD has actually gone well above State ADU guidance...any existing '2-unit' zoned property can get up to 7 total units....
- 2 units per your zone allowance
- 1 attached ADU
- 2 detached ADUs
- 1 'bonus' ADU with the inclusion of 1 'affordable' ADU
The City code also clarifies that you do not have to build your remaining density before constructing the ADUs...and if your are in a Transit Priority area you can propose as many bonus/affordable ADUs pairs as you want. Obviously there are still design guides that might make this practically infeasible, but it is allowable.