How owners pay for it
Most ADUs are paid for with home equity. Grants come and go; we check what's open when you start.
You're likely a fit if
- You have equity in the property
- You know which ADU fits your lot (the free Lot Check)
- You've talked to a licensed lender about the payment
Ways to pay for an ADU
We explain the options and introduce licensed lenders. We don't arrange loans ourselves.
Common ADU financing
| Option | Good for | Watch for |
|---|---|---|
| HELOC | Owners with equity | Variable rate |
| Cash-out refinance | Large equity, good rate | Resets your mortgage |
| Construction or renovation loan | Borrowing on the finished value | More paperwork, draws |
| Cash | Fastest, simplest | Ties up savings |
How it runs
The free Lot Check first, then a written quote after design.
Licensed lenders who do ADUs.
You pay as work is done, never ahead of it.
What owners ask
How much do I pay up front?
California caps a home-improvement down payment at $1,000 or 10% of the contract, whichever is less.
Are there ADU grants?
Sometimes. The state's CalHFA ADU grant is closed as of November 2026; local programs open and close. We check at the start.
Where this comes from
Checked October 2026. Laws change; we re-check every project against the current code before design. General information, not legal, tax or financial advice.
| Source |
|---|
| California Business and Professions Code 7159 (down payments and progress payments) |
| CalHFA ADU Grant Program status, November 2026 |
Other programs
Since January 2025, California lets an existing apartment property add detached ADUs, one for every existing unit up to eight, plus conversions of garages and storage.
Learn more
SB 9 lets a single-family lot be split in two, with up to two homes on each.
Learn more
Cities must now keep a set of pre-approved ADU plans.
Learn moreDoes your property qualify?
Send the address. We check it against this program and every other one.