Question: Do I have to live in the house in order to get the grant?
Answer: Yes, you must be the owner and occupant of the property to qualify for the grant.
Question: What kind of loan do I need to do to get the CalHFA ADU Grant?
Answer: It depends on your specific situation. Renovation loans will recognize the value of the property after construction is finished. Cash out refinances only recognize current value.
Question: How much can I get from the CalHFA ADU Grant?
Answer: Up to $40,000 to go towards your closing costs and pre-development costs.
Question: What are pre-development costs?
Answer: Anything that gets you right up until you start building the ADU.
Question: Can I use the grant towards the foundation and other construction costs?
Answer: No, those are not pre-development costs, those are construction costs.
Question: What are some examples of pre-development costs?
Answer: Some examples of pre-development costs would be, plans, permits, impact fees to city or county.
Question: What closing costs can be covered by the grant?
Answer: A whole bunch! That includes costs to buy down your rate, escrow fees, and other costs associated with getting financing to complete your ADU. On a typical renovation loan these costs can be between $5,000 and $20,000 depending on several factors.
Question: What happens if there is extra money left over from the grant?
Answer: The grant funds cannot be used towards anything other than the specific types of items listed above, so if there are only $30,000 in pre-development and closing costs then you would only receive a grant of $30,000.
Question: Do I qualify for the grant and the loan?
Answer: Maybe! We'd need a full loan application to evaluate your readiness for the loan and grant. Click down below to get started!