Understanding ADU Financing in California
In the world of homes, Accessory Dwelling Units (ADUs) have become a hit for folks wanting more space or rental income. But the money side can be confusing. Let's break down ADU financing in California and explore ways to realise this dream. ADU Financing Explained 1. What is ADU Financing? ADU financing is how homeowners get money to build their ADUs. It is about finding the cash to make this extra home happen. 2. Options in California Traditional Mortgage: Like a regular home loan based on your property's worth. Home Equity Line of Credit (HELOC): Borrow against what your home's already worth, with flexibility in how much you take out. 3. ADU Financing Programs Government Help: Some programs offer grants or help to make ADUs happen and keep homes affordable. Fannie Mae Home Style Loan: A loan that covers both your home costs and your ADU project. Why ADU Financing Matters 1. Extra Money ADUs ca...