Build Your ADU.
We Fund It.
Construction loans up to 85% LTC for Accessory Dwelling Units. Fast approvals, milestone-based draws, and a clear path to permanent financing.
Check Your ADU Eligibility
Built for ADU Construction
We specialize in the unique financing needs of ADU projects — from garage conversions to detached new builds.
75–85% Loan-to-Cost
Maximize your leverage. We fund up to 85% of total project cost including land value, permitting, and construction — so you keep more cash for reserves.
Fast Underwriting
Our streamlined 12-point forensic underwriting process means faster decisions. No weeks of back-and-forth — get clarity quickly so your project stays on schedule.
Milestone-Based Draws
Funding releases tied to construction milestones — foundation, framing, MEP, finishes. You only pay interest on what’s drawn, keeping carrying costs low.
ADU Specialists
We understand zoning (SB 9, SB 13, AB 68), lot utilization ratios, and ADU-specific permitting across every LA and OC jurisdiction. We speak your language.
Construction-to-Perm
Seamless transition from your construction loan to permanent financing. DSCR, conventional refi, or sale exit — we map your takeout from day one.
Interest Reserve Built In
Your interest reserve is capitalized into the loan — no monthly payments from your pocket during construction. Focus on building, not cash flow juggling.
How It Works
Four clear steps from pre-qualification to your first construction draw. No surprises.
Pre-Qualify
Submit your property details and project plan. We respond within 24 hours with your eligibility and estimated terms.
Underwriting
Our team verifies property value, zoning compliance, contractor bids, and construction timeline via our 12-point forensic checklist.
Approval & Close
Receive your commitment letter, finalize docs, and close. Interest reserve and first draw funded at closing.
Build & Draw
Construction begins. Funds released at each milestone — foundation, framing, MEP, finish. We inspect and wire within 48 hours.
ADU Construction Loan Parameters
Clear terms, no hidden fees. Here's exactly what to expect.
| Parameter | Standard Terms |
|---|---|
| Loan-to-Cost (LTC) | 75 – 85% |
| Interest Rate | 9.5 – 11.0% (Interest-Only) |
| Origination Fee | 1.5 – 2.0 points |
| Loan Term | 12 – 18 months (+3–4 mo buffer) |
| Draw Schedule | Milestone-based |
| Minimum Equity | 15 – 25% (cash + land value) |
| Interest Reserve | Required, capitalized in loan |
| Loan Range | $60K – $300K per ADU |
Your Property Could Generate $1,200–$1,800/mo
A well-built ADU in LA or Orange County adds significant rental income and property value. At a 5.5% cap rate, a single ADU can add $218K–$327K to your property's value.
- Detached ADU: 600–1,200 SF — $150K–$300K construction
- Garage Conversion: 300–500 SF — $60K–$100K construction
- Attached ADU: 400–800 SF — $120K–$200K construction
- Yield on cost: 8.0% – 12.0% annually
- Perm take-out via DSCR or conventional refi
What Our Borrowers Say
Homeowners and investors across Southern California trust CDF for ADU construction financing.
“CDF funded our garage conversion in Fontana in under 3 weeks. The milestone draw process was seamless — our contractor loved it. Now we’re collecting $1,450/mo in rent.”
Roberto M.
Homeowner, Fontana CA
“I built a detached ADU on my property in Anaheim. CDF structured the loan so I had zero out-of-pocket during construction with the interest reserve. The property appraised $240K higher after.”
Linda T.
Investor, Anaheim CA
“As a contractor, I recommend CDF to my clients. Their draw process is the fastest in the business — 48 hours from inspection to wire. It keeps my projects on schedule and my subs paid.”
James G.
Licensed GC, Los Angeles CA
Ready to Build Your ADU?
Get pre-qualified in 24 hours. No obligation, no credit pull until you're ready to move forward.