Accessory Dwelling Unit Program
ADU To Rent Program
The Norris Group’s Accessory Dwelling Unit (ADU) 2nd hard money program is built for investors with rentals with an existing conventional loan in place with lots of equity. The program funds 65% loan to value (LTV) on the existing property so the investor can build a CA Title 24 approved property. There’s a 20% hold back until a final inspection is completed on the ADU. The term is three years with a one-year prepayment penalty. 3D printed housing, modular homes, and stick-built will all qualify for the loan as long as it falls within Title 24. No manufactured housing (Title 25) or tiny homes (regulated by DMV).
Please note: DO YOUR HOMEWORK! Investors will want to be careful on local ordinances as well as staying up-to-date on California state legislation regarding ADUs as things are changing. See our video on the different ways we fund ADUs, some history on how ADUs got started, and nine tips to help keep your investment safe.
9 TIPS FOR ACCESSORY DWELLING UNITS
ADU LOAN PROGRAMS
Term: 3 years
Rate: 9.9% interest only
Prepayment penalty: 1 Year Up to 65% LTV
Points: 2 pts
Appraisal Fee: $375-$400
Entities, trusts & IRAs OK