What type of funding is available for building an ADU in Los Angeles?

What type of funding is available for building an ADU in Los Angeles? What are my options?

You've already made the decision to build an ADU for your Los Angeles home ad now it's time for pricing and funding. You might be overwhelmed and thinking that you cannot afford it but that is far from the truth as the average project costs $65,000-80,000 in Los Angeles. Not only can you afford it but the project will pay itself off in just a few short years. To pay for the project you have 3 funding options you can utilize.  

Your three types of ADU/garage conversion funding:

1. A Home Equity Line Of Credit (HELOC)

2. Refinancing your home

3. A loan from your local credit union

It is important to note that for any of the three options you will need to have good credit. You also need to understand that the quote for average project cost is for a an ADU of 400 square feet and that actual projects could be more, so you should make sure to take a loan that gives you wiggle room. You can also use any combination of the 3 financing options to reach the amount you need to complete your ADU. Know that by building an ADU you are adding at least $100,000 in equity or property value to your home and if you rent it out you can recover the cost of the project within five years and then be making extra income! A win-win. Take the time to research your option then look forward to your ADU!

For passing inspections for house remodeling, you can contact our trusted partners Los Angeles Home Remodeler.com. Before you pass inspection for anything you will need architectural designs, our sister company also provides does here Architectural Designs.com.

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