Accessory Dwelling Units (ADUs) continue to be a vital solution to California’s housing shortage crisis. ADUs, additional units on residential lots, offer a promising avenue to increase housing availability. In response to the pressing need for more housing, Los Angeles County, Orange County, and the entire state of California have recently updated laws and guidelines to facilitate ADU construction. The Mortgage Vintage ADU loan program stands ready to support this housing transformation by providing purchase and refinance financing for ADU construction on both owner and non-owner-occupied properties.
Lending Criteria & Guidelines:
- Loan Amounts: From $100,000 to $2,500,000+
- Property Type: Single Family to Multi-Family (1 to 3 ADUs allowed)
- Loan Type: Business Purpose Ground-up Construction or Remodel Construction
- Loan-to-Value: Up to 60%-% LTV/CLTV based on After Repair Value (ARV)
- Terms: 1 to 2 years with Balloon Payments, featuring Interest-Only or Amortized Payments
- Occupancy: Owner Occupied and Non-Owner Occupied, with ADUs designated for rental
- Underwriting: Equity Driven, Bank Statements (No Tax Returns required, other documents may apply)
- Property Valuation: Appraisal required based on After-Repair-Value
- Interest Rates: 1sts from 10.50% and 2nds from 12.50%*
- Points & Fees: 2 or more Points plus Underwriting & Valuation fees of $2,995+
- Funds Control: Required if using After Repair Value,
- Permits: Not necessary, however typically borrowers like to have the construction estimate and permits in place to reduce the length of the loan term
- Compliance: Must adhere to City, County and State ADU ordinances
- Inclusivity: Accommodating Low FICO, Previous BK, Previous NOD, Foreign National, and Self-Employed individuals
Why Choose Mortgage Vintage, Inc.?
Mortgage Vintage, Inc. distinguishes itself as a direct hard money lender specializing in originating and funding business purpose loans for real estate investors and business owners. Our loans are exclusively secured by California real estate, providing you with:
- Prompt Term Sheets: Receive term sheets on the same day you inquire.
- Effortless Loan Submission: Enjoy a smooth and rapid online loan application process with 7-10day fundings.
- Fast, Flexible, and Transparent: Experience a loan process that’s designed for speed, flexibility, and transparency.
- Decades of Industry Experience: Benefit from over 40 years of experience in the financial industry.
- Commitment to Funding: Certainty of funding through CrowdTrustDeed’s secure online marketplace.
- Se Habla Español: Our services are accessible to Spanish-speaking clients.
At Mortgage Vintage, Inc., we’re dedicated to assisting you in seizing the income opportunities presented by ADU construction. Whether you’re an investor looking to fix and flip and add an ADU or a homeowner looking to add additional monthly income to your pocketbook, our ADU loan program is designed to help you navigate the evolving California real estate landscape with confidence. Contact us today and embark on your ADU construction journey with a trusted partner.