ADU Financing
Most homeowners in LA and Orange County are sitting on more equity than they think. INVICTA’s finance department works with preferred lenders who help homeowners tap that equity — or borrow on the value of the finished ADU — to fund the build.
Equity estimator
Enter rough numbers. Lenders typically let you borrow up to a set percentage of your home’s value, minus what you still owe.
Estimate only, not a loan offer. Nothing you type here is saved or sent.
Preferred lenders
Not every lender knows how to finance an ADU. Our preferred lending partners do. Our finance department brings them in early so your loan, your plans and your build schedule line up.
Financing programs
The right one depends on your equity, your current mortgage rate and the size of the build. Our finance team will walk you through it.
Home equity line of credit
A line of credit on the equity in your home. Draw only what you need as each build phase is paid, and keep your current first mortgage and rate.
Best forHomeowners with solid equity and a low first-mortgage rate
Fixed-rate second mortgage
One lump sum at a fixed rate, paid back on a set schedule. Your first mortgage stays untouched.
Best forOwners who want a predictable payment
Replace your mortgage with a larger one
Refinance your current mortgage for more than you owe and take the difference in cash to build the ADU. One loan, one payment.
Best forOwners whose current rate is near today’s rates
Borrow on the after-built value
Renovation mortgages lend on what the home will be worth once the ADU is built, not just today’s value. Fannie Mae’s HomeStyle Renovation can be used to add an ADU to an existing home.
Best forOwners with limited equity today
Government-insured renovation loan
An FHA-insured loan that rolls renovation costs into your mortgage for an owner-occupied home. The Limited 203(k) is capped at $75,000 for non-structural work, so ADU projects use the Standard 203(k) (HUD).
Best forOwners who need FHA flexibility
Construction-to-permanent financing
A loan built for new construction: funds are released in draws as each phase is completed and inspected, then the loan converts to a regular mortgage when the ADU is done.
Best forLarger detached ADUs and two-story builds
CalHFA’s ADU Grant (up to $40,000 for pre-development costs) has been fully allocated since December 28, 2023, and is not open (CalHFA). We’ll let you know if a new round opens.
Fannie Mae allows ADUs to be financed with its standard products (Fannie Mae), and income from an existing ADU can count toward qualifying, up to 30% of total income (Fannie Mae Selling Guide).
Your path to financing
We confirm what you can build on your lot, the size and layout, and a realistic budget range.
Our finance department looks at your home value, mortgage and goals and matches you with the right program.
A preferred lender pre-approves you, so you know your number before you pay for plans.
We design the ADU and take it through plan check while your loan is finalized.
Your loan closes and we build. Draws are paid as each phase is completed and inspected.
Rent it out, house family or create a home office — your ADU starts working for you.
Get pre-approved
Tell us about your home and the ADU you have in mind. Our finance department will reach out, review your options with a preferred lender and map out your path to financing.
Thanks — our finance department will review your project and reach out within one business day.
Financing questions
Not always. Many homeowners build with the equity they already have through a HELOC, home equity loan or cash-out refinance. If equity is limited, a renovation or construction loan can lend on the value of the home once the ADU is built.
It depends on your home’s value, what you owe, your credit and your income. Lenders typically cap your total borrowing at a percentage of your home’s value. Use the estimator above for a rough idea, then our finance team can give you a real number.
Sometimes, depending on the program. Fannie Mae allows rental income from an existing ADU to count toward qualifying, limited to 30% of your total qualifying income (Fannie Mae). Rules for a unit that isn’t built yet vary by lender, so ask our finance team.
The CalHFA ADU Grant, which reimbursed up to $40,000 in pre-development costs, has been fully allocated since December 28, 2023, and no new round is open (CalHFA). Be cautious of anyone who says they can get you that grant today.
Sending this form does not pull your credit. A lender will explain any credit check before it happens, and nothing moves forward without your OK.
No. INVICTA is a design-build contractor. Our finance department connects you with preferred lending partners and coordinates your loan with the build. All loan decisions, rates and terms come from the lender.
INVICTA is a design-build contractor, not a lender or mortgage broker. Financing is provided by independent lenders and is subject to credit approval, property appraisal and lender guidelines. Program descriptions are general information, not a loan offer or financial advice; programs, limits and rates change. Talk with a licensed loan officer about your situation.