The architectural plans are what I will need, even if you have not yet submitted them to the City.

You get reimbursed for those fees when the loan closes from the loan funds, so long as we can fit it in the budget.

Yes, this is very common. And most often we can reimburse them when the loan closes via the loan funds.

A renovation refinance requires 60-90 days to complete because we need the details of the construction bid, HUD Consultant review, appraisal, and mortgage numbers to match. It’s a lot of collaboration and nearly 100 pages of numbers, but we make it go faster when we collaborate closely.

No, it is a refinance of the first mortgage based on future appraised value.

Unfortunately, no. You would need to team up with the property owner to refinance and build the ADU. We CAN title the property Tenants in Common, so you own the ADU and the current owner continues to own their primary home and land.

A typical monthly cost of the ADU, when financed as part of a renovation refinance is $500. We offer a complimentary rate & term refinance when construction is completed, and that typically brings your monthly cost down to $450. Conversely, every $10,000 in construction costs $50 and $45 per month, respectively.

We require a 10% contingency buffer in case of cost overruns. For a $100,000 project, that means a $10,000 contingency fund. If you don’t use those funds, they are added back into the principal of the mortgage.

Unfortunately, no, but we can include renovations on other parts of your house. In fact, it’s a good opportunity to think about strategic renovations including:

• 50-year roof
• Solar
• Aging in place renovations
• Deferred maintenance

Yes. The ONLY out-of-pocket cost you will have is the appraisal. If we do a renovation refinance, you will also need to pay a HUD Consultant but that is reimbursable as part of the loan. Our goal is to pay for 100% of your costs, except the appraisal.

Nope. Your home and land (which is the most expensive part) stay at the same tax rate. Your new square footage of the ADU is taxed at today’s rate, and they are blended together. We do not see a large increase. You can call your County Tax Assessor and they will estimate your new payment.

This is a refinance with a 30-year fixed mortgage, so your payment would be the same. However, mortgage insurance is eliminated anytime a property reaches 80% loan-to-value, which might reduce your payment if you have less equity. Moreover, we have a Lifetime Guarantee on our loans, so you can refinance in the future for any reason with no lender fees.

It’s DEFINITELY cheaper and better to finance it as attached. We can finance up to 110% of future value (which provides more budget) at typically .5% lower. However, if the ADU is detached, we’ll provide a complimentary rate & term refinance after construction is complete to reduce your interest rate.