How To Get $40K FREE Grant To Build Your California ADU!
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- čas přidán 1. 08. 2024
- Getting the $40,000 Grant from CalHFA can be complicated, but completely worth it! This is a fantastic opportunity to get some financial assistance to bulld and create multi-generational living, a separate living space for adult children in an expensive market, or an investment with cashflow.
Could be your parh to FIRE Financial Independence Retire Early.
If you understand the process and how to get the information you need it won’t feel so overwhelmingly to get this grant.
In this video I explain some important details on eligibility, what the ADU Grant money can be used for, the income limits and a possible way to stretch the limits if you need to, and more.
And if you want to buy a new home with enough space to build ADU, in-law suite, or granny flat... I can help you find that as well.
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LINKS:
👉 Subscribe To My Channel: bit.ly/Maria_DAura_CZcams
👉 CalHFA ADU Grant Website: bit.ly/CalHFA_ADU_Grant
👉 Income Limits: bit.ly/CalHFA_Grant_Income_Li...
👉 ADU Grant Application Process: bit.ly/ADU_Process
👉 ADU Grant Qualified Lenders: bit.ly/ADU_Grant_Lenders
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Hi!
My name is Maria D'Aura - Bay Area Real Estate Mom. I'm a Real Estate Agent and real estate investor located in Livermore California, Tri-Valley East Bay Area. Don't forget to subscribe to my channel!
CONTACT INFO:
Maria D'Aura
eXp Realty | DRE#02018907
☎️ 925-400-8488
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Very good incentive to proceed go ahead and build, I designed an ADU for my daughter recently. Now is a good time to develop all the preliminary work such as the approved plans, permits and other non construction work to be in place for to start work by this coming spring.
Wow so informative Ty so much! I’m planning for my mom to love with me but she’s not ready to leave just yet so I will need to rent it until she’s ready. I’m in Lancaster, ca and would like to build a 1200 sft adu. I never use my backyard anyways.😊
Great plan! 1200 sqft seems huge for an ADU to me. That is going to be a pricey build. Let me know how it goes.
This is a great knowledge and business
Great post Maria, unfortunately according to the CALHFA website the funding has dried up for the time being. I wanted my forever home to include an SB-9 housing and a ADU. I am 71 yrs old and I want my forever home to be in the bay area, with room for my daughter and her pets. I DONOT want to end up in some old folks home to die. I am a Veteran of the wars in the middle east and I lived in the bay area for over 40 yrs.
Has anyone researched the lenders to find out which one has the best interest rates?
Thank you for this valuable information! I live in a nice neighborhood in Northern California with a huge mature backyard with trees but so much space! My backyard is much bigger than other neighbors backyards so I’ve been thinking of a ADU . I own my home and single so this would be good income used toward my retirement and to pay down my house. It seems I fit the criteria though I do have mortgage payments so not sure if you meant I must own my house as paid off in full or not.
Hi Mari, No, you don't have to pay off your home to qualify for the grant or to build an ADU. There are several options you can consider. Here's a few to consider: 1. If you have the funds to build the ADU then you wouldn't need a loan at all and could keep your existing mortgage. 2. Get a second loan such as a HELOC to pay for the building of the ADU 3. If you are old enough you could consider a reverse mortgage to pay for the build too. 4. You could refinance your existing mortgage as well and using a renovation loan could help you if you are concerned about the amount of equity you have.
I did a video on renovation loans with a lender. Here's the link: czcams.com/video/3xmhoERoATA/video.html
We also did a video about using a reverse mortgage to build an ADU: czcams.com/video/v7KuhXYxhFw/video.html
His contact info is in the description of those videos. He is in San Diego, but can certainly help you in any part of California.
Let me know what you decide and how it turns out.
Himy dear can I have the website I could apply for it thank you so much
What is the impact of California's AB2221? I hear some fees are being waived.
Is the application for the grant electronic? I did download & print the application, but I’m not sure. Filling it out manually & emailing to hpp cares seems too outdated to be right. Lol
Can it be done with only $50,000 ? I wanted something simple above garage most of the bones are there just an add on
Any suggestions?
if i own land, can i use this grant to buy prefabricated homes to rent?
I love this = but I live in Vermont .. How do I find something similar in my state?
Hi Kelly,
I googled Vermont ADU and a few things came up. Here are a couple links I found. Hope you find something that helps.
accd.vermont.gov/housing/planning/adu
www.vsha.org/montpelier-adu/
Hi , so what if you do not have good credit to apply for the 2nd on your mortgage ? You mentioned that the grant can only be done with a lender ?Thank you
There have been some changes since i posted this video. There is now an option to get the grant without getting a loan. So those who have the cash to pay for the ADU can use that option. I’m still looking into the details, but it’s worth looking into.
Could you please explain what the side preparations mean ?
We are in the process of getting permit but I’m wondering If we get this grant how can we use it on our ADU project?
Hi Mary, Site preparations. Things you need to do to get your site prepared, like permits, design, plans, etc. If you haven’t gotten that far on your project pause and contact a lender.
I know this grant has to be with a Cal HFA approved lender but does it have to be a CalHFA loan? As an example, my Cal HFA lender does not do the ADU loans so we're going to use the Fannie Mae Home Style Renovation loan. So, CalHFA approved lender but doing a Conforming loan ... not a CalHFA conforming. Wil the grant still work?
You can only get the grant by going through of the approved lenders on the list published by CalHFA. I've personally spoken Will Johnson from Benchmark Mortgage and find him to be very knowledgeable about the entire process. I suggest calling him. 619-295-9455 . If you want to see the entire list of lenders here's the link: www.calhfa.ca.gov/adu/#apply
Currently in the process of building an attached ADU in our home in Murrieta, CA. It is going to be 499 square feet (living room, kitchen, bedroom, bathroom). All ADA to meet the needs of my grandmother. I definitely recommend shopping around as much as possible even for architects. Got our plans done by a 68 year old veteran for $2,400. He outsources the title 24 and structural engineering so we will owe a tiny bit more for that. We already have the plans, just waiting on the outsourcing work to be completed then we can officially submit to the city for permits. I saw the grant money and was curious if it can cover retroactive work? The overall construction is going to be about $200,000 and I've already retained a contractor.
Hi Megan, Sounds like you got a great deal! My understanding from talking to one of the program approved lenders is you can apply the grant to things you already paid for. Save all the receipts. Be sure to verify this with an approved lender incase i misunderstood or anything has changed. Call Will Johnson at Benchmark for clarification 619-295-9455
@@BayAreaRealEstateMom They don't reimburse back if you already paid out of your pocket even if you have receipts. I got informed through the staffs from adu grant non profit organization.
400 $ sqft ! Can you give a list of costs why it cost so much I heard it's around 100-120k
I'm in Socal I'm being quoted 264k for 1200 square feet.
Maybe get another bid
Get another bid. OK? 200k for 500 square foot is outrageous.
I’m planning to build an adu in my garage detached ,but I don’t have enough money to build it
If you're in California, did you apply for the grant? It could help you get it started so you know exactly what it will cost to complete the project.
Do you need financing? One of the biggest benefits of renovations is the total loan amount including construction costs is based off the future value of the property with the improvements.
Great information! thanks for sharing
My daughter added an ADU in 2019-2020…. I understand she cannot go back and apply for this grant BUT is there a credit that she can apply/qualify for having built an ADU? Apparently, she was ahead of her time and this grant was not in existence when she took on the task of having the ADU constructed. Thank you.
Hi Blanca, I don't think there is any retroactive grants for building an ADU. That's great that your daughter got it built! I'm sure it will serve her well and be a valuable asset to her in the years to come.
If i understand this correctly, the Home Owner needs to be pre-approved for an ADU loan prior to applying for the grant??
Great question. The requirements have changed a bit since this video was made. The way I understand it is the loan and the grant applications can happen at the same time, but the grant won't be funded to the homeowner until the homeowner has funded the account with the entire cost of the ADU build. It could be with a variety of different loan options in which case being approved for the loan would required, or if you have the cash to build without the loan you could bypass the loan entirely. The best bet is to contact one of the approved lenders on the CalHFA site and have them go other options with you. Will Johnson at Benchmark Mortgage would be a great person to talk to as he is experienced in the building process as well as the lending. Hope that helps
If my partner and I are unmarried but own a home together, does the income limit apply to our joint income or one of us?
Great question, Tenzin. This is a questions best asked to one of the CAlHFA approved lenders. I suggest you give Will Johnson a call. I'm sure he will have the answer for you. 619-295-9455
I wish Texas had grants for this
Wait my city said I need to add parking Buena park
hmmm… what city? Did you talk to the planing department? I hear many cities are behind on updating their documents. Maybe that’s the case? Let me know what you find out.
What if you build a tiny home adu and it doesn't cost more than 40k. Do I have to qualify for a loan
There are now options to get the grant without a loan. Check the CalHFA site for the providers offering this option.
Why dont other states get on board. It makes so much sense. Texas ( where I live) just shot it down by two votes in the Senate, where it was passed in the house.
Does the grant apply to JADUs also?
I just posted a video where I interviewed a CalHFA lender and asked him this exact question. The answer is yes, it can be applied to a JADU. Check out the video for more grant q&a's
Do you know who I can get in contact with I live in Rialto California I would like to have a adu’s made in my back yard
Hi Lisa, It will depend on where you are with your planning, if you need financing, do you already own the property where you want to add an aud, etc. Not knowing any of your specific details it's hard to point you in the right direction. If you need financing I suggest starting with Will Johnson at Benchmark mortgage.
Will Johnson
Mortgage Loan Officer
ADU Financing Expert
BenchMark Mortgage
(858) 526-3037
(619) 295-9455 (cell)
Will.Johnson@benchmark.us
NMLS #2109577
Is this grant only for adu? If I already done detach garage conversion adu, and I want to build another duplex can I qualify for this grand?
That's a great question, Tracy. I'm not sure I have enough information to answer. When you say build another duplex, do you mean two more ADU's on the same lot where you already did a detached garage conversion or a different lot all together? Do you live on the property and plan to stay there? Email me to clarify and I'll see if I can get you the answer.
@@BayAreaRealEstateMom I want to build another bigger unit in same lot where I am occupied now. But I would like to know if sb9 law require owner has to occupy forever or three years after completed sb9 unit. And can I apply for this 40k grand to build bigger unit as higher cost
Do prefab ADUs qualify for this grant?
Great question, Jennifer. I actually asked one of the CalHFA lenders I interviewed. Just posted the video you can check it out. Short answer is yes, but might not have as much pre-construction costs as a traditional build would.
I want to get a 203K loan to build a detached ADU would this 40K grant be something I could apply for & use in addition to the 203K loan?
Thank you in advance
Would be interesting if this would work.
I’m scheduled to talk to one of the lenders in the program very soon. I’ll ask your specific question for a future video. stay tuned
I’m in the process of doing this now. I have been approved for a 203k and my lender submitted me for the grant. I’m updating my home and converting my detached garage to an ADU
I have land with all the utilities in place use to have manufacturerd home before. Can I get this loan 40k
Great question, Pedro. I don’t see why you wouldn’t be able to use this grant for the situation you described. The grant can’t be used for construction costs, but it sounds like you still need to have the design work done. Seems like a great way to use this grant. I’ll be interviewing one of the grant lenders soon and I’ll ask him your question to get a more detailed reply. Stay tuned.
Thanks u very much
Is it true if we get this 40k grant, we have to be willing to rent a room to section 8 or a senior??
That's a great question. I have not heard or read of that requirement. I'm curious where you might have heard or read this? From that last time I looked into the details I understood that you could rent it to anyone (family, friend, stranger, etc...) or even no one. The property where the ADU is built does have to be your primary residence. The best thing to do to find out all of the current requirements, because sometimes they do change without notice, is to contact one of the lenders. They are the ones that will verify if you qualify for the grant and can give you details on current requirements. Let me know how it goes! bit.ly/ADU_Grant_Lenders
Im an approved lender for the grant (Benchmark Mortgage). It is not required.
Thank you for your reply and confirmation. Any chance you'd be interested in going over details with me in a video? My contact info is in the description... send me a message and let's plan it. Thanks
Not me.
You gotta own your property to qualify for LOAN, this is sort like grand, why is it a LOAN?
IT LOOKS AND SOUNDS LIKE SOME KIND OF SCAM TO ME. LBV
There are a lot of scams, but this definitely isn't one of them. Yes, you have to own the property you plan to build an ADU on. Maybe your landlord wouldn't care if you wanted to spend the money to build her an ADU, but it's not a good idea. Now that would be a scam. The $40K is not a loan, it's a grant. AKA Free money. When the program started the only way to get it was to go through an approved lender, however that has changed. Anyone who has the cash already to build their ADU can go through another process that does not require a loan to get the grant.
Hope that helps.
“No money for construction” boooo :/
I know… but pre construction costs can really add up. If you’re just at the start of planning this can help a lot!
You are SO fine!