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A Better Way to Finance an Accessory Dwelling Unit!

Whether you are looking to expand your property’s livable space or develop a secondary unit for rental purposes, building an accessory dwelling unit (ADU) may be a good option. The recent changes to California zoning and construction regulations are making it easier to add an ADU.

What Is an ADU? Accessory dwelling units (ADUs for short) are add-on residential units on the same land as a detached house. Also known as granny flats, guesthouses, casitas, tiny homes or backyard cottages, ADUs can add value to your property and create a steady source of rental income. Units range in size from about 400 to 1,200 square feet of living space and must include a kitchen, bathroom and living area. In addition to detached ADUs, attached garage conversions are becoming a popular and cost-effective option.

ADU Financing Options. When seeking financing for an ADU project, homeowners can shop and compare a wide range of options, including home equity loans and lines of credit, cash out refinances, and construction loans. It’s important to carefully compare the advantages and disadvantages of each type of loan.

The Benefits of E-Central’s ADU Construction Loan

To help our Members finance their projects, E-Central has designed a unique new home loan specifically for financing ADU construction. The special features include:

  • Up to 100% financing of building costs (no upfront costs)
  • ADU construction funding up to $400,000 (excluding existing mortgage)
  • Construction term of up to 12 months
  • No payments during construction period
  • 1-4 units owner-occupied only
Ready to explore the advantages of building an ADU? Compare your financing options with an E-Central Real Estate Lending expert today.

Everything, everywhere

E-Central Credit Union is a leading credit union located in Pasadena, California, serving Southern California members throughout Los Angeles County including Pasadena, South Pasadena, Alhambra, San Marino, Arcadia, Sierra Madre, Altadena, Temple City, Monrovia and beyond.