CalHFA ADU Grant

You have questions, we have answers!

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Financing an Accessory Dwelling Unit (ADU), also sometimes called a granny unit, can be confusing. We're here to help!

For information on the different ways to finance the construction of an ADU, please see below. There is also information about the new CalHFA ADU Grant as well.

Question: Do I have to pay off my current mortgage to get a renovation loan to build the ADU and get the grant?
Answer: MAYBE! It depends on which type of loan is appropriate for your situation. FannieMae Homestyle, FHA 203k, and FreddieMac CHOICEHome renovation loans all require that the new loan be in "1st lien position," meaning that we must pay off your existing loan with the new one, if you have an existing mortgage, in order to qualify for these programs.