An ADU (Accessory Dwelling Unit) is a self-contained living space located on the same property as a primary residence. Unlike a traditional home addition, an ADU typically has its own kitchen, bathroom, and living area, functioning as an independent unit.

Yes, it can. As of October 2023, the Federal Housing Administration (FHA) allows lenders to include ADU rental income when evaluating mortgage eligibility:

•For existing ADUs: Up to 75% of estimated rental income can be considered when qualifying for an FHA-insured mortgage.

•For new ADUs under construction: 50% of projected rental income may be included using FHA’s 203(k) Rehabilitation Mortgage Insurance program.

This update expands financing options, making ADUs an even more appealing investment. Additionally, as of November 2022, Freddie Mac offers a program for 1-3 unit properties that enables buyers to purchase or refinance (e.g., from a construction loan) while factoring in ADU rental income into the property’s value. No seasoning period is required, so refinancing can start as soon as a rental agreement is in place for the ADU.

Yes, we work alongside you and your lender to provide the necessary plans, scope of work, and budget required for construction loan approval.

Once the project begins, we handle loan documentation with the lender, including coordinating inspections and “draws.” Draws are payments released by the lender based on construction progress milestones. This means you only pay interest on the funds used so far, rather than the full loan amount upfront, making the process more cost-effective.

To obtain construction financing for an ADU, your lender will need key documentation, including the intended floor plan, elevations, scope of work, and a detailed budget outlining total construction costs. All of this is included in ADU360’s Feasibility Study, providing everything necessary to begin the financing process. These details give your lender a clear understanding of the project and its cost-effectiveness.

To ensure your financing covers the full scope of your ADU project, start with a comprehensive Feasibility Study. At ADU360, we provide a Price Lock Guarantee, meaning your project cost won’t increase unexpectedly after securing financing. This gives you confidence that your approved loan will fully cover the project, eliminating concerns about unforeseen cost increases.

ADUs provide extra living space for family members, potential rental income, and can increase your property’s value. They are also a flexible solution for multigenerational living or downsizing without leaving your neighborhood.

The timeline depends on the scope of the project, but most ADU builds take between 6-12 months from design to completion. This includes planning, permitting, and construction phases.

Costs vary depending on size, design, materials, and site conditions, but ADU projects typically range between $100,000 to $300,000. We can provide a more accurate estimate after assessing your property and project needs.

Yes, building an ADU requires specific permits that vary by city or county. Our team will handle the permitting process, ensuring all local zoning and building regulations are met.

In most cases, your existing utilities can support an ADU, but upgrades may be needed depending on the size and use of the unit. We will assess your current utilities and suggest the best approach for your project.

ADUs can be customized to fit your needs, from detached units in your backyard to garage conversions or attached units. We work with you to design an ADU that complements your existing property while maximizing functionality and space.

In the design-build process, our team handles everything from initial design concepts and obtaining permits to construction and final inspection. This streamlined approach ensures smoother communication, faster timelines, and better budget control.

Yes, building an ADU can increase your property taxes, as it adds value to your home. However, your Tax amount for the existing building on your property would not be re-assessed. The amount of the increase depends on local tax regulations, and we can help you estimate the potential impact.

Yes, many homeowners rent out their ADUs for additional income. However, local regulations may dictate how the ADU can be rented, such as short-term versus long-term rentals. We can guide you through the local rules and restrictions in your area.

An ADU (Accessory Dwelling Unit) is a separate, self-contained living unit that can be detached, attached, or converted from an existing structure like a garage, with a typical size of up to 1,200 sq. ft. In contrast, a JADU (Junior Accessory Dwelling Unit) is a smaller unit, up to 500 sq. ft., created by converting part of an existing single-family home, such as a bedroom. While ADUs offer more flexibility in terms of size and location, JADUs are limited to internal conversions within the main house.

For ADU projects, we typically provide a one-year warranty that covers workmanship and materials, ensuring that any issues related to construction defects are addressed. Additionally, structural components, such as foundations and framing, are often covered under a longer-term warranty of up to ten years, in compliance with California regulations. We stand by the quality of our ADU builds, and if any problems arise due to our construction, we will work to resolve them promptly within the warranty period.

Of course! Feel free to schedule a consultation on our website. We’re more than happy to answer any questions you may have regarding SB-9 or anything else!

Any residentially zoned property – single-family or multifamily.

The ADU must typically go in the backyard. It must be located at least 4 feet from the rear and side property lines (unless converting an existing garage). It can be fully detached or attached to the main house or to a garage.

No parking is required for an ADU, as long as you are located within one-half mile walking distance of a public transit stop.

The idea behind it is that we will be with you throughout the whole process, from the feasibility study, design, construction, financing, and even will help you to rent it. That is why it is called ADU360.

Our starting package is a Standard package which it starts from $290 – $300 per SF.

ADU ordinances permits that but first HOA regulations and requirements need to be met. In some cases such requirements are complicated and creates limitations

By law we are liable for our work : structurally for 10 years and for the whole construction work for one year.

At ADU360, we believe in comprehensive, transparent pricing. Your proposal is a high-level estimate that includes your selected ADU package cost, permitting, project management, plus some assumptions about the site work your property requires. Once you’re in the Feasibility Study phase, we will do a deep dive into your property’s specific needs and provide a detailed line-by-line estimate.

Our Feasibility Study gives you all the information you need to make a confident decision. Your ADU Architectural Designer will assess your property in detail and create a custom site map and utility plan. We’ll also review local permitting requirements, walk you through design selections, and present you with a refined estimate and project timeline. A Feasibility Study costs just $99 and is packed with educational materials about building an ADU on your property. Whether you build with ADU360 or not, all the materials are yours to keep!