ADU Financing, Simplified: Your Path to Building an ADU in California
The financial side of your ADU build doesn’t have to be complicated. Urbatect is a licensed California design-build expert and your guide through the entire process. We connect you with our trusted, ADU-savvy lending partners so you can compare options, get pre-qualified fast, and keep your project moving.
- Get a free assessment of your project & understand the all in costs
- Get Pre-Qualified for financing
- Talk to a Financing Specialist
Free ADU cost calculator for California Homeowners!
4 Simple Steps with Urbatect : How to Finance Your ADU
Tell Us Your Vision & Understand All-In Costs
Answer a few quick questions about budget, timing, scope, and use (rental or family). We’ll follow up with a consultation and prepare a custom, all-in cost quote.
Get Matched to Lending Partners
We introduce you to ADU-experienced lenders who can discuss HELOCs, cash-out refis, renovation/construction loans, and figure out the best options for you.
Compare, Choose, & Pre-Qualify
Review your options and choose the best fit. We help coordinate documentation so your design, permits, construction and financing stay perfectly synced for a smooth start.
Proceed with Design, Permitting & Construction
With pre-qualification in place, we move into the design-build phase. At the time of the signing up, we can align our payment milestones with the lender-approved draw schedule with physical construction milestones, so you only pull funds when needed (per your lender’s terms).
Why Finance Your ADU with Urbatect's Guidance?
We are experts in the California ADU construction process. This unique perspective allows us to integrate your financial planning directly with design and permitting, saving you time and stress.
1. Understand the All-In Costs
We evaluate your project goals, perform a preliminary feasibility study, and consult with you to provide a single, clear quote. This lets you approach lenders with a firm, lender-ready budget.
2. Vetted Lender Network
We partner only with financing providers who can offer great terms and solutions for our clients, deeply understand California ADU lending nuances, including local permitting timelines, zoning, and how to value your completed ADU ( valuation post ADU construction).
3. Design-to-Construction Friendly Coordination
We sync your financing timeline with the Urbatect Design-Build process. This allows you and your lender to structure payments (draws) that align perfectly with project milestones, optimizing your cash flow.
4. No Sales Pressure
Our only role is to help you compare and choose confidently.
Common ADU Financing Options For California Homeowners
| Option | How It Works for ADUs | Best For |
|---|---|---|
Construction Loan |
Short-term loan based on the improved value of your home (home + completed ADU). Funds are released in stage-based draws as work passes inspection. | Large projects, maximizing borrowing power based on future value. |
HELOC (Home Equity Line of Credit) |
Revolving line of credit tied to your existing home equity. You only pay interest on the amount you draw. | Smaller projects, flexible borrowing, covering soft costs initially. |
Cash-Out Refinance |
Replaces your existing mortgage with a larger one. You take the difference in cash to fund the ADU construction. | Homeowners with significant equity who want a single, low-rate mortgage. |
What Lenders Typically Look For To Finance Your ADU in California
- Home equity & credit profile
- Income and debt-to-income (DTI)
- Property details (zoning, lot, existing structures)
- Appraisal assumptions (existing and/or improved value post ADU construction)
- Project readiness (budget, general timeline, detailed quote from the contractor or all in costs; later: permit status and build contract)
Ready to See Your Options?
Featured Partners
Will Johnson
Construction Loan Broker
ADU Financial Specialist
NMLS #2109577 DRE#
02207239
Tyler Beardshear
Loan Officer
Vice President, Stone Guard
Lending
NMLS | 2093478
Renofi
RenoFi is a financial technology company that provides a lending platform leveraged by credit unions nationwide to offer loans to consumers.
Our Completed ADU Projects
Custom Home
Santa Rosa
- Size: 3,512 sq ft
- No of stories: 2
- Special features: Modern farmhouse design
Studio Loft
San Diego
- Size: 375 sq. ft
- No of stories: 1
- Special features: Compact design
Sawgrass Residence
Santa Rosa
- Size: 3,100 sq ft
- No of stories: 1
- Special features: Vaulted beam ceilings & open layout
Camden ADU
Oakland
- Size: 222 sq. ft
- No of stories: 1
- Special features: Compact design & murphy bed
Paxton custom home
Santa Rosa
- Size: 2,683 sq ft
- No of stories: 2
- Special features: Modern 2-story home with pool, spa and stone facade
Sierra Home
Sacramento
- Size: 4,084 sq ft
- No of stories: 1
- Special features: Mediterranean-inspired home with pool
1,000+ Happy Customers.
Real Stories, Real Results.
The Urbatect Advantage
- 1. One-stop Solution With Expert Project Management, Design, Permit & Construction Team.
- 2. Flexible And Customizable Design-build Solutions With Allowances To Choose Your Own Finishes.
- 3. Budget Transparency & Cost Control With Fixed Pricing That Protects Against Labor And Material Cost Increases For 16 Months.
- 4. 25–30% Faster Project Completion Without Compromising Quality.
- 5. Dedicated Permit Technician & 30% Faster Permit Expediting.
- 6. Advanced Technology & 3D Visualization.
What Sets Us Apart
Licensed
& Insured
Call Us Now!
(669) 201-0805
Email Us
info@www.urbatect.com
Book an Appointment
Schedule a free consultation
FAQs
1. Do you charge for connecting me to lenders?
2. What kind of credit score do I need?
3. Can I start the ADU design before financing is finalized?
4. Can I start my ADU with only a pre-qualification & how do I avoid unnecessary costs?
5. Can I start construction before I pull the loan?
6. Will my loan let me draw only when needed?
7. Will lenders consider ADU rental income?
8. How long does financing take?
Yes. We offer both custom design services and build ready ADU plans ready for permits. Whether you want a fully customized layout or a faster, more affordable plan, we help you choose what works best for your property and timeline.
9. What costs should I plan for besides interest?
Yes. We offer both custom design services and build ready ADU plans ready for permits. Whether you want a fully customized layout or a faster, more affordable plan, we help you choose what works best for your property and timeline.
10. Can I roll soft costs into the loan?
Yes. We offer both custom design services and build ready ADU plans ready for permits. Whether you want a fully customized layout or a faster, more affordable plan, we help you choose what works best for your property and timeline.
Note: Compliance & Disclaimers
Urbatect is not a lender, mortgage broker, or financial advisor. We introduce homeowners to independent, licensed lending partners. All loan decisions, terms, and disclosures are provided by the lender. Information on this page is general and not a commitment to lend. Equal Housing Lender statements and required disclosures appear on our partners’ materials.
