Tiny Home Financing San Diego | Tiny Homes on Wheels

ADU & SFD Lending Guide

ADU — Accessory Dwelling Unit

An ADU is a secondary housing unit on an existing residential property, either attached or detached. Multiple financing paths may be available depending on your situation and equity position.

Financing Options

HELOC / HELOAN: Leverage existing home equity to fund the ADU construction outright without touching your first lien.
Cash-Out Refinance: Leverage existing home equity to fund the ADU construction outright. No second loan required.
FHA 203k / Fannie Mae HomeStyle: Renovation loan programs that roll purchase and improvement costs into one convenient mortgage.

Key factors: existing property value, available equity, ADU type, attached vs. detached, and local zoning.

SFD — Single Family Dwelling on Purchased Land

Building a custom home on land you own or are purchasing? A one-time close construction-to-permanent loan may be an option.

One-Time Close Construction-to-Permanent Loan

One closing, one set of fees, no double closing costs
Lock in your permanent interest rate at closing
Covers land purchase and home construction under a single loan
Funds released in draws as construction phases are completed and inspected
Automatically converts to a standard mortgage upon home completion

Already own the land? Financing may be available for the build and rolled into a permanent mortgage at completion.

Construction / Renovation Loan Timeline — What to Expect

Step	Stage	Timeframe	Description
1	Pre-Approval	1–3 days	Income, credit, assets, and project scope are reviewed. A pre-approval letter may be issued outlining borrowing power.
2	Processing, Underwriting & Appraisal	2–6 weeks	Documentation is collected, the appraisal is ordered, and the loan file is prepared for underwriting. A licensed appraiser may evaluate the property and project plans to determine current and future value.
3	Closing	1–3 days	Closing documents are signed, the loan funds, and construction draws are established.
4	Start of Construction	Varies by builder	The builder begins work. Draw requests are submitted and funded as each phase is completed and inspected.
5	Home Completion	Per build schedule	Once the certificate of occupancy is issued, the construction loan may convert to a permanent mortgage.

Typical timeline: 30–60 days from pre-approval to groundbreak, depending on project complexity, lender requirements, and local municipality review.

Ready to Get Started?

Review your financing options and determine which path may work best for your project.

Contact us to discuss ADU or single family dwelling financing options.

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