ADU Mortgage Specialist

The backyard your
bank overlooked
is worth more.

We finance ADUs on R-1 lots in Los Angeles, San José, and Portland — construction-to-perm, HELOC, and cash-out refi — when your bank says "we don't do that."

Select ADU Size

See What Your Lot Qualifies ForExplore Loan Programs
312
ADUs Financed
$2.1B
Loan Volume
3 Cities
LA · SJ · PDX
R-1 Residential Lot · 6,250 sq ft
ALLEYMAPLE STREET5 FT SETBACKGARAGEMAIN HOUSE1,840 sq ftN25 ft
Live Estimate
Loan Amount
$195K–$265K
Monthly
$1,580
Rental Est.
$2,400
Net monthly after payment
+$820 / mo
1-Bedroom ADU · 640 sq ft
30yr fixed · 6.85% APR est.
Scroll to Explore
Loan Programs

Three paths to your
ADU

Hover each card to see full terms. Every situation is different — we'll help you find the right fit.

Construction-to-Perm

One loan. Build now, convert at CO.

Best for: Homeowners building from scratch

$350K
Max Loan
10–20%
Down Payment
Fixed 30yr
Rate Type
Hover to see full terms

Construction-to-Perm

Rate
6.85–7.40%
Term
30-year fixed
Max Loan
$350,000
Min Equity
20% existing equity
Single close — no second appraisal
Draws paid directly to your contractor
Converts to standard mortgage at CO
Interest-only during construction phase
!
Requires licensed general contractor
!
Inspections at each draw milestone
Get a Rate Quote →

HELOC

Tap your equity. Draw as you build.

Best for: Owners with 40%+ equity, phased builds

Up to $250K
Credit Line
10 years
Draw Period
Variable
Rate Type
Hover to see full terms

HELOC

Rate
Prime + 0.5–1.5%
Term
10yr draw / 20yr repay
Max Loan
$250,000
Min Equity
40% existing equity
Only pay interest on what you draw
Reusable credit line — draw, repay, redraw
Fastest approval — 3–4 weeks
No prepayment penalty
!
Variable rate tied to Prime
!
Requires significant existing equity
Get a Rate Quote →

Cash-Out Refi

Refinance your first. Fund the second.

Best for: Low-rate holders with substantial equity

Up to 80% LTV
Cash Out
Fixed or ARM
Rate Type
15 or 30yr
Term
Hover to see full terms

Cash-Out Refi

Rate
6.50–7.25%
Term
15yr or 30yr fixed
Max Loan
Up to 80% LTV
Min Equity
20% remaining post-refi
Lump sum at close — full project funding
Single monthly payment (no separate ADU loan)
Potential rate improvement if bought at higher rate
Simplest structure for straightforward projects
!
Replaces existing mortgage rate
!
Closing costs on full loan balance
Get a Rate Quote →

Not sure which fits your situation? Answer 3 questions and we'll tell you.

City Regulations

Rules by city,
precise to your zip

Setbacks, height limits, and permit timelines — current as of February 2026.

LA's pre-approved ADU plans cut permit time to 30 days

Permit: 30–60 days
Max Square Footage
1,200 sq ft
⬜

Or 50% of primary unit, whichever is less. Junior ADU (JADU): 500 sq ft max.

Rear Setback
4 ft
📐

Minimum 4 ft from rear and side property lines. Zero setback for conversions of existing structures.

Height Limit
25 ft
📏

25 ft for detached ADU. 16 ft within ½ mile of transit. Attached ADU matches primary.

Owner Occupancy
Not Required
🔑

CA state law removed owner-occupancy requirement through 2025. Investors may apply.

Parking
0 Spaces
🚗

No parking required within ½ mile of transit or if parking is eliminated to create ADU.

Permit Fee Cap
$2,000
💰

Fees capped at $2,000 for ADUs under 750 sq ft. Standard plan fee: $1,200 flat.

Common zip codes:9004290039912059002690031
Check My Specific Address →
Pre-approval program: Standard Plan Program · Regulations current as of Feb 2026 · Always verify with local planning dept.
Project Timeline

Permit to CO —
what actually happens

7–12 mo
Typical Total
Day 1
Rental Income
01
Pre-Approval Letter

Financing Pre-Approval

1–2 weeks

We review your lot, existing equity, and ADU plans to issue a loan pre-approval letter.

Pre-approval locks your rate for 90 days
Key Tasks
Property valuation order
Title search
Income verification
Loan program selection
02
Permit Issued

Permit Application

2–8 weeks

Architect submits plans to city planning. LA Standard Plans can reduce this to 2–3 weeks.

Key Tasks
Architectural drawings
Structural engineering
Title 24 energy compliance
City plan check
03
Framing · Rough-in · Finish

Construction

4–8 months

Your contractor breaks ground. For C2P loans, draw requests are submitted at each milestone.

C2P: interest-only payments during construction
Key Tasks
Foundation & framing
MEP rough-in inspections
Insulation & drywall
Finish work & fixtures
04
All Inspections Passed

Final Inspection

1–2 weeks

City inspector walks the unit. Minor corrections resolved before certificate is issued.

Key Tasks
Final building inspection
Electrical final
Plumbing final
Fire & life safety
05
🔑 ADU is Live

Certificate of Occupancy

Day 1

CO issued. Your ADU is legal, rentable, and your C2P loan converts to a standard mortgage.

Estimated rental income starts offsetting payment
Key Tasks
CO issued by city
Loan converts to perm
Unit listed for rent
Rental income begins
Get Qualified

See what your lot
qualifies for

Three questions. Real numbers. No credit pull, no obligation — just a clear picture of what your backyard can become.

1
Property
2
Your Goal
3
Contact

Where is your property?

We'll look up your lot size and zoning automatically.

Recent ADU Financings
MT
Marcus T. · Silver Lake, LA
640 sq ft 1-bed · C2P · $218K
+$2,200/mo
PS
Priya & Rajan S. · Willow Glen, SJ
420 sq ft studio · HELOC · $162K
+$1,750/mo
DC
Deb C. · Alberta Arts, PDX
800 sq ft 2-bed · Cash-Out · $285K
+$2,950/mo

ADU Financing Checklist

The 23-item checklist every homeowner needs before applying for ADU financing — docs, timelines, and lender questions.

Income & employment docs
Property title & survey
Contractor bids & plans
HOA approval (if applicable)
+ 19 more items

No spam. Unsubscribe anytime.

No credit pull
SSL encrypted
1-day callback