Accessory Dwelling Unit (ADU) Construction Loan Program – California
Our ADU Construction Loan Program is designed for property owners and investors seeking to build or convert Accessory Dwelling Units (ADUs) for rental income or investment purposes.
Whether you are constructing a ground-up ADU, converting a garage, or adding a Junior ADU (JADU), this program provides flexible, short-term financing structured specifically for business and rental use.
Unlike traditional bank financing, our ADU loans focus on equity and project viability, allowing borrowers to unlock rental income potential with speed and certainty.
| Loan Amounts | $100,000 – $3,500,000+ |
| Property Type | Single Family – Multi-Family – 1–4 ADUs |
| Eligible Projects | Ground-Up ADU – Garage Conversions – JADUs – Remodel Construction |
| Loan Type | Construction or Remodel – 1st & 2nd Trust Deeds |
| Loan-to-Value | Up to 65% LTV / 60% CLTV of After-Rehab Value (ARV) | 70% of Purchase and 70% of Rehab Option Available |
| Terms | 1–3 Years with Balloon – Interest Only Payments |
| Occupancy | Owner Occupied & Non-Owner Occupied – ADU Must Be Used as Rental |
| Underwriting | Equity-Driven – Bank Statements – No Tax Returns Required (other docs may apply) |
| Property Valuation | Appraisal Required Based on After-Repair Value (ARV) |
| Interest Rates | 1st Trust Deeds from 9.99% – 2nd Trust Deeds from 11.99%* |
| Points & Fees | 2+ Points plus Underwriting & Valuation Fees starting at $3,495+ |
| Funds Control | Required – Construction Draw Management |
| FICO | Flexible Credit – BK – Foreign National – Self Employed Considered |
Who This Program Serves
- Homeowners adding rental income to their primary residence
- Investors maximizing lot value through ADU expansion
- Multi-family property owners increasing cash flow
- Developers specializing in ADU conversions
- Borrowers seeking short-term bridge financing prior to refinance
What Makes Our ADU Program Different
- Equity-Focused Underwriting
Loan approvals are based primarily on property value and ADU project feasibility rather than traditional income documentation.
- Rental Income Strategy
Designed specifically for income-producing ADUs and JADUs.
- Speed & Certainty
Same Day Term Sheets. Quick approvals. Funding often in as little as 7 days.
- Structured Draw Process
Professional funds control ensures smooth construction draws and inspections.
Strategic Advantages for Borrowers
- Increase Property Value
Add long-term equity and rental income potential. - Cash Flow Expansion
Create new monthly income streams without selling the primary asset. - Flexible Structure
Owner-occupied and non-owner occupied properties eligible. - Bridge-to-Permanent Financing
Ideal for refinancing into long-term rental financing once construction is complete.
Why Mortgage Vintage?
✓ Same Day Term Sheets – Professional Service
✓ Easy Loan Submission – Quick Appraisal – 7 Day Fundings
✓ Fast Construction Draws and Inspections
✓ Flexible and Transparent Loan Process
✓ ADU Funding Based on Committed Terms
✓ Support for Brokers on Take-Out Refinance (Hard Money Only)
✓ Privacy, Security and Confidentiality through CrowdTrustDeed
✓ Se Habla Español
All loans must be secured by California real estate.
Contact
Sandy MacDougall – (949) 763-3982 – sandy@mortgagevintage.com
