Learn About Construction Loans Today!
A Construction Loan Can Help You Afford To...
Invest In Home Renovations
Turn you house into your dream home! With real estate prices skyrocketing an SD203K construction loan is a great way to make changes and additions to your current home without moving.
Add Income Dwellings
Turn your home or property into an income producing property, by adding rental units. With the new change in zoning laws, this has become a real opportunity for many property owners!
Add An ADU
Accessory dwelling units (ADU) go by many name—casita, granny flat, mother-in-law apartment. No matter what you call it, we can help you increase the value of your home by adding an ADU.
Taking Care of Family, Create Income
California has recognized the burden of housing shortage statewide. The scarcity inflates rental costs eliminating affordability. It disproportionately effects lower income families, students and others. The impact cascades into longer commutes adding to costs, pollution and quality of life.
In 2017 California reacted to impose statewide mandates for Accessory Dwelling Units otherwise known as Granny Flats. The statewide mandate removes barriers and reduces overall costs for permitting and construction. These mandates override local building ordinance regulations.
Construction of ADUs were impaired from numerous requirements like parking, setbacks, and unreasonable construction costs normally associated with new construction.
Numerous bills passed in 2017 and 2018 that significantly improved the viability and cost reductions saving tens of thousands of dollars.
ADUs – Allows construction of an additional living dwelling on a property. This is applicable for single family and multi-family zone properties. Can be attached, detached or utilize existing space like garage conversion. Size limit is 1,200 sf. Must have direct access to the public street. Must meet setback requirements.
Demand is driven from both housing needs and income opportunities. ADU’s will add housing to help alleviate housing shortages. It will also create long term affordable housing. Homeowners can participate. You have an affordable housing solution to your aging parents, siblings, young adult children. If you finance a garage conversion, your mortgage payment will be under $500/mo. compared to average of $1,500/mo. in the San Diego area.
Income opportunities will draw interest for investment strategies. Attractive cap rates and instant equity will draw in the seasoned real estate investor. This will also attract first-time investors and savvy homeowners desiring to diversify their investment portfolio.
What this means for you?
Homeowners – This creates an opportunity to add affordable housing for family or an attractive income stream.
Homebuyers – Addition of square footage adds value to create equity.
Construction of ADU’s starts at $80,000 for a garage conversion. Detached ADU’s start at $120,000. If you don’t have funds, you can consider refinancing a home loan. Several options exist such as home equity loans, renovation loans and more.
We are a network of seasoned professionals that collaborate and create a seamless process that ensures integrity, reliability and cost savings.
New, Attached – Allows new addition up to 50% of square footage of existing dwelling, not greater than 1,200 sf.
New, Detached – Allows new addition up to 50% of square footage of existing dwelling, not greater than 1,200 sf.
Conversion, Unconditioned – Typically a garage conversion.
Conversion, Conditioned – Also known as a Junior ADU. Converting living area. Must have separate outside access and setback that complies with fire safety code. Up to 500 sf. Must have kitchen(ette) and direct access to the outside.
New ADU Ordinance Changes
Parking – Parking requirements has been one of the biggest obstacle in planning of ADUs. The new ordinance allows more flexibility.
No parking required if a public transit stop is within 1/2 mile.
Tandem parking allowed to fulfill parking requirement allotment.
Allowance to use setbacks for parking.
Utilities – Previous regulations required new services for utilities including electrical, gas and water. New utility connections not required. New ordinance allows to provide utilities to feed from existing dwelling providing there is sufficient capacity. This will save on construction costs.
Permit & Impact Fees – Past fees reflect costs as new residential construction. New regulations state these fees must now be proportional, another significant cost savings.
Fire Sprinkler –Not required if not present in primary dwelling.
The following are provisions that are determined by local building department:
Owner Occupancy – Owner must reside in primary or ADU
Short term rental restrictions
Size & height limits
Setbacks
Read about the City of San Diego’s Companion Unit:
These new ordinances will go a long way to make ADU’s viable. The cost savings are significant in the tens of thousands of dollars. This is a great time to consider an ADU addition.
We have a team of professionals to assist every step of the way. From a free initial consultation to financing, planning and construction, we have a coordinated process from an experienced team with you every step of the way.
Meet our experts to fully understand your needs. We’ll explore the best financing that meets your financial goals. Our feasibility will evaluate your site, develop plans, determine budget and timeline to completion. Our expertise and teamwork will come in on time and on budget.
Contact us to answer all your questions. We can schedule a Free onsite consultation about:
- Financing
- Site Survey
- Plans
- Ordinances
- Construction
Please complete the form and call us at (619) 295-9455.
We look forward to assist you.