All Forum Posts by: Mason Alvarado

I think, generally speaking, this is one of the bigger reasons NOT to build an ADU in your backyard simply because you have the space: there aren't really any simple ways to finance the building costs.

Maybe some specialty programs exist for prefab homes or a custom ADU builder might have his own lender partner they could refer you to... but unless you yourself are an experienced home builder with a track record in ground-up construction, you're basically looking at a hard money or a HELOC. You also probably will not get a $1 in cost <= $1 in value from the ADU after construction, if you tried to do a cash-our refi or something. AND you cannot separately sell or refinance that ADU in the future.

That said, I ran across this company that seems to specialize in this type of addition: maybe they could help? https://www.prismadu.com/

That was very helpful. Thanks! I may go with a private/portfolio lender. I do have plenty of family who are willing to let me owe them money

0 Votes

Tucson, Arizona

Has anyone in the Tucson area secured financing for an ADU rental on their primary residence? We have the land and meet the code requirements dictated by Pima county. I am looking for information regarding financing the construction on an ADU. I am open to getting a manufactured home and dropping it if necessary. I have an FHA on my residence. Haven't refinanced or pulled a HELOC. Not sure if there are other long term finance options (30 years preferably). Budget is $80k-100k for a 2br/1ba.

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Tucson, Arizona

Hi all,

Has anyone successfully financed an accessory dwelling in Tucson (or Arizona)?
What options are available for FHA borrowers? I want to build an ADU in our backyard and rent it out. We have the space and plans, I just want to secure financing before getting started. I know it's a relatively new phenomenon, but I've looked into refinances and HELOC's. I'm not sure if any local lenders will consider the property value once the ADU is complete when reviewing my loan application. TIA!

0 Votes

Tucson, Arizona

All Forum Posts by: Mason Alvarado

Mason Alvarado has started 2 posts and replied 3 times.

Post: ADU Financing for renting

Post: ADU Financing for renting

Post: Financing an ADU on a SFH property