Looks like you've gotten a lot of great feedback, but I'll throw my two cents in as well.

There are a few people that would be wise to reach out to in order to get this information.

Thankful for this community that gave me the guts and information to do it. 

Depending on the zip code you might also check with Wells Fargo to see if they offer the down payment assistance grants in that area.Could be the buyer is just trying to save cash, so counter back with no closing costs.   

I don't believe there were any updates to the notifications, but will keep you posted as I just asked our team. 

Each option has its pros and cons, and I'm hoping to get some insights from this community to make a more informed decision.Option 1: Building an ADUPros:Increased Property Value: An ADU can significantly increase the value of my primary residence.Control and Proximity: I can closely manage and maintain the property since it's on my land.Potential for Higher Rent: ADUs in bay area can fetch a good rental price.Flexible Use: ADUs can serve multiple purposes – home office, guest house, or rental unit.No Additional Land Purchase: Utilizing existing property means no extra cost for land acquisition.Foundation improvements: I will get an upgrade for my foundation which increase house stability.

We are sandwiched between well known hot spots and its an ideal location for someone who wants to explore the beach life or any of the down-town areas nearby (Los Angeles, Long Beach, Redondo, Manhattan, Southbay Etc), new build with modern amenities, washer/dryer in unit, full sized fridge, dishwasher, professional range cooktop, queen bedroom, full standing shower, large kitchen, full sized couch in the living room, private front patio. 

I would love to hear people's more recent thoughts as well.

In addition to FHA, I have a conventional loan with the option to put as little as 3% down as well a speciality product that has lower rates if the property is in a designated area.

Could you PM me his info as well?