CalFHA ADU Grant Program - construction loan for ADU

[Hannah Joy]

Hey all, I just found out about the CalFHA ADU grant program - curious if anyone in Cali has gone through this process? They require you to get a construction loan through one of their approved lenders (there are only 3 which seems weird) The lender is saying I have to get a brand new first trust deed to get a construction loan, but aren't there standalone construction loans? 

I like my current mortgage where it is, what I'd like to do is just get a small standalone construction loan to be able to get the Grant funds to cover predevelopment costs. I have 2 personal lenders ready to cover the rest of the ADU construction costs. How do I get this approved lender to give me what I want so I can access those state grant funds hehe.

- Just a hardworking lil girl trying to develop my property with no real capital of my own - gotta get scrappy and creative. Any knowledge or guidance appreciated.