Types of Accessory Dwelling Units

The Fannie Mae requirements for an ADU include its own entrance, a kitchen with a sink and stove, a place to sleep, and a bathroom. It must also be smaller than the primary house. Limitations regarding parking spaces, utility hookups and emergency exits are regulated by local laws.

With these conditions satisfied, an ADU can take the form of:

• * An addition to the house.
• * A conversion of an existing space, such as a garage, basement, or attic.
• * A "stick-built" (constructed on-site from the ground up) structure in the backyard.
• * A modular or manufactured home placed in the yard.
• * An addition (such as an added second story) to a detached garage.

Financing options are similar whether you build something new or convert existing space. Many homeowners add ADUs to collect a rent check every month. But plenty of folks are ADU-curious because they literally want to move Granny into a granny flat.

Many homeowners are accessing the large equity they accrued during the pandemic to finance the build of these units. If you would like to put your equity to good use by building an ADU, but don’t qualify for a conventional loan, you could explore private money options as a temporary solution until you qualify for conventional financing. There are options out there to increase your real estate wealth.

Best,

Ken & Ari Walker - Your Direct Private Money Source

Husband & Wife Team

Phone: 707-708-0797 / Office: 1400 N. Dutton Ave #22 Santa Rosa, CA 95401
Ken: CA DRE Broker #01858042 / NMLS #1221130
Ari: CA DRE #01858152 / NMLS #2170867

Bio: Ken & Ari are a husband & wife team with over 30 years of combined real estate and private money lending experience. They like working with buyers & borrowers, as well as directly with other licensed individuals who have clients in need of fast & alternative financing, and who can benefit from Private Money mortgages. (Qualify for our financing despite DTI ratios, credit score, property condition, difficult to prove income, etc. on purchases and refinances for owner occupied & investment properties.)