Flexible Financing to Fit Your Budget
FINANCING OPTIONS
Building an ADU is one of the smartest investments a California homeowner can make. With options ranging from government grants to traditional home equity products, there's a financing path for nearly every budget. AmerADU connects you with trusted lenders who specialize in ADU projects so you can move forward with confidence.
Transparent Pricing. No Hidden Fees.
Base Pricing
âš All prices are starting estimates. Final pricing includes design, permitting assistance, factory construction, transportation, and installation. Site preparation and utility connections quoted separately.
Add-On Options: Solar Panels · Deck or Porch · Wheelchair Accessibility Package · Smart Home Technology
Transparent Pricing. No Hidden Fees.
Base Pricing
GRANT -- NO REPAYMENT REQUIRED
Up to $40,000
CalHFA ADU Grant Program
California Housing Finance Agency offers grants up to $40,000 to cover predevelopment and non-recurring closing costs including site prep, architectural plans, permits, impact fees, and utility connections. This grant does not need to be repaid. Must apply through a CalHFA-approved lender.
No repayment required | Income eligibility applies | Pre-approval before permitting
Government-Insured Loan
Up to $25,000
FHA Title 1 Home Improvement Loans
Government-insured loans up to $25,000 for single-family homes. No home equity required. Fixed interest rates, repayment terms up to 20 years. Ideal for moderate-income homeowners looking to add an ADU without tapping existing equity.
No equity required | Fixed rate | 20-year term
Veterans
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Veteran Financing Programs
Veterans may qualify for exclusive loan and grant opportunities through VA-backed lenders, nonprofit veteran housing initiatives, or state programs. AmerADU prioritizes connecting veteran clients with lenders who understand these programs. California veterans have access to additional state-level assistance through CalVet and nonprofit veteran housing initiatives.
VA-backed options| State-level CA programs | CalVet assistance
Home Equity
Based on Equity
Home Equity Loans & HELOCs
Homeowners with sufficient equity can finance through a traditional home equity loan (lump sum, fixed rate) or HELOC (revolving credit line). Competitive rates available from most California banks and credit unions. AmerADU can connect you with lenders experienced in ADU projects.
Flexible draw (HELOC) | Fixed payments (HEL)
Construction-to-Permanent Loans
Combined construction and mortgage financing with a single closing. Streamlined payments that convert from a construction draw to a permanent mortgage once your ADU is complete. Some lenders now offer specialized ADU-specific loan products with streamlined underwriting and faster approvals. AmerADU maintains relationships with several of these lenders and can provide referrals based on your location and financial profile.
California ADU Permitting: Simpler Than You Think
Permitting an ADU in California is no longer the bureaucratic nightmare it once was. Since 2019, a series of state laws -- including AB 68, AB 881, SB 13, and AB 3182 -- have dramatically streamlined the ADU approval process, reduced fees, and removed most local barriers that used to block projects. Under current law, your county or city must act on a complete ADU permit application within 60 days. If they miss that window, your application may be deemed approved. AmerADU submits complete, code-compliant applications to maximize your chances of first-time approval.
That said, local requirements still vary by jurisdiction. Setback distances, height limits, utility hookup requirements, and design standards differ between Los Angeles County, the Bay Area, Sacramento, and other regions. Our permitting team stays current on requirements in every county we serve and manages your entire permit process so you do not have to become an expert in local zoning law.
Common Permitting Questions Answered
Frequently Asked
A standard ADU project in California requires several permit types, though AmerADU manages all of them on your behalf. The zoning clearance confirms your property is eligible to add an ADU and that the proposed size and placement comply with local rules. The building permit covers structural, electrical, mechanical, and plumbing systems. For factory-built units like ours, the unit itself arrives with state factory certification, which simplifies the local building permit process significantly. Utility permits cover sewer, water, and electrical service connections or upgrades. Finally, a final inspection by your local building official results in the Certificate of Occupancy that makes your ADU legal for occupancy and rental.
No. California Civil Code 4751 prohibits HOAs from enforcing any rule or restriction that would effectively prevent an ADU or junior ADU from being built on a member's property. HOAs may impose reasonable design standards (such as exterior color requirements to match the primary home), but they cannot prohibit construction outright. AmerADU designs its units with customizable exteriors specifically to satisfy HOA aesthetic requirements while preserving your right to build.
In most cases, no. California law waives parking requirements for ADUs located within half a mile of public transit, within a historic district, or created through conversion of existing space. Most urban and suburban California homeowners qualify for this waiver. Our team will confirm your specific situation during your site assessment.
California law allows detached ADUs on lots as small as those zoned for single-family residential use, and our AS540 model at approximately 540 square feet is designed specifically to work on smaller lots with tighter setbacks. We will assess your lot during the consultation to confirm feasibility and recommend the best-fit model and placement.