🏦 CalHFA ADU Financing Programs
In addition to grants, CalHFA offers financing options to help homeowners cover the construction costs of their ADUs. These programs are available through a network of approved lenders, including:
Envoy Mortgage
Supreme Lending
Platinum Home Mortgage
New American Funding
LoanDepot.com
These lenders offer various loan products tailored to ADU construction, providing homeowners with flexible financing solutions.
✅ Eligibility Criteria
To qualify for CalHFA's ADU grant and financing programs, homeowners must meet the following criteria:
Property Ownership: Must own the property where the ADU will be built.
Primary Residence: The property must be the homeowner's primary residence.
Income Limits: Household income must be at or below 80% of the Area Median Income (AMI) for the county where the property is located.
Approved Lender: Must apply through a CalHFA-approved lender or participating nonprofit organization.
It's important to note that income limits vary by county. For instance, in Los Angeles County, the 80% AMI limit for a household of four is approximately $84,160.
📝 Application Process
The application process for CalHFA's ADU programs involves several steps:
Select an Approved Lender or Nonprofit: Choose a CalHFA-approved lender or participating nonprofit organization.
Submit Application: Provide necessary documentation, including proof of income, property ownership, and primary residence status.
Loan Pre-Approval: If applying for financing, obtain pre-approval for a construction loan.
Grant Application: Apply for the ADU grant through the selected lender or nonprofit.
Fund Disbursement: Upon approval, grant funds are disbursed to cover eligible pre-development costs.
It's recommended to start the application process early, as funding is limited and demand is high.
📅 Important Dates and Funding Availability
Phase 1 Launch: The initial phase of the ADU grant program launched in 2021, with $100 million allocated to assist homeowners.
Phase 2 Launch: In December 2023, a one-time appropriation of $25 million was added to the program through Senate Bill 104.
Funding Status: As of the latest update, funds for Phase 2 have been fully allocated. Homeowners are encouraged to stay informed about future funding opportunities.
💡 Tips for a Successful Application
- Early Application: Apply as soon as possible to increase your chances of receiving funding.
- Complete Documentation: Ensure all required documents are submitted accurately and promptly.
Work with Experienced Professionals: Collaborate with architects, contractors, and lenders experienced in ADU projects.
Stay Informed: Regularly check CalHFA's website and your selected lender's resources for updates on funding availability and program changes.
