Fruitridge Pocket ADU Builders

ADU Unit Construction in Fruitridge Pocket

Before the start of the construction process, homeowners should get acquainted with the norms and regulations in California and in the Sacramento region in particular.

One family is allowed to build one general ADU, attached or detached, in the backyard and one junior ADU conversion. If the household is owned by multiple families, they are entitled to one ADU per every four existing dwellings.

A one-bedroom ADU can reach 850 sq. ft.; an ADU with two bedrooms can reach 1000 sq. ft.; and a junior ADU must not exceed 500 sq. ft. The smallest ADU size allowed is 150 sq. ft.

Benefits of ADU Building

Aside from living space extension and granting the opportunity to affordable housing within the Sacramento community, the ADU building presents California homeowners with several useful features:

Working as granny flats

Of course, not everyone can devote a lot of time to caring for their aging parents. But if their condition allows, a granny flat is a way more homey and affordable dwelling than a distant assisted living residence with huge fees.

Serving as a home office or studio

If you’re a homeowner who works remotely and is engaged in the manufacture of products at home, a separate residential dwelling in your yard will serve as a great place to concentrate on your business without being disturbed by family members.

Housing guests

Guests from another Sacramento city or from the neighboring state of California will appreciate the opportunity to freely stay in a cozy, equipped yard cottage. And you, as hosts, will appreciate the maintenance of your personal space.

Rental income

Though renting costs may vary depending on the popularity of the city, amenities, number of bedrooms, and attractiveness of the façade, in general, one may charge up to $2000 per month. Rents may be used to pay off the mortgage and taxes or to replenish the family’s monthly budget with fixed additional funds.

Greater property value

Get your property appraised after building an ADU to resell it for maximum benefit. A high-quality ADU made taking into account the requirements of modern design can add from $200,000 to $500,000 to your property value. This amount not only helps to repay the costs, but is also quite capable of being used to buy a new house.

Fruitridge Pocket ADU Construction Company

To make a final decision, the A+ Construction & Remodeling company suggests starting with the following:

• Schedule a preliminary consultation where we will discuss what kind of ADU you want to build, outline the sequence of actions, recommend how to utilize your Sacramento property space effectively and look through the design details;
• Order a free estimate of your costs to determine how much money is to be paid upon completion of the ADU building. We make a list of things to do to get the fees fixed so that you don’t have to face unforeseen expenses;
• Conclude a contract that takes into account the interests of each party and fixes the scope of work that A+ will provide;
• Our specialists will apply for the necessary permits for your freestanding ADU or garage conversion so that you don’t have to.

Building ADU in Fruitridge Pocket

The next topic we’re going to tackle is how to find financing for an ADU building if you don’t have sufficient funds. The first and most obvious option is a loan application. But which loans are the most profitable for those who want to do construction work?

• Home equity line of credit.

This is a type of secured loan where the collateral is your home equity. The lender typically demands that the borrower retain a certain percentage of their home equity (10–20%). The fees of lenders under this mortgage don’t exceed $500, and you can withdraw money to pay big for an ADU building and then repay the loan before the due date. This, together with low-interest rates, makes a home equity line of credit as convenient as a credit card. However, keep in mind that such loans treat your home as collateral, and it will be confiscated if you default.

• Loan for construction.

If you get this loan, the lender will require an assessment of your property’s value after the construction is finished. To do this, you will need ready-made architectural plans so that the appraiser can evaluate your property as a whole. And already, with this amount, you can take a short-term loan (commonly for one year).

And last but not least good financing opportunity is the ADU grant program. The California Housing Finance Agency offers up to $40,000 for ADU buildings. At the moment, payments are suspended, but it is planned to resume on July 1, 2023. A grant is not a traditional loan or mortgage, so you won’t have to pay anything back.

To meet the criteria for obtaining such a grant, it’s necessary for the lender that you:

• Provided blueprints and the final cost to calculate the cost of the loan;
• Signed an affidavit stating that you currently occupy the house;
• Must be written down as the owner of the house;
• Not an investor.

Prefab ADU Construction

If a custom ADU is not what you’re ready to pay for, a prefab ADU is a way for you to both have an ADU and save money. Not only are prefab ADUs times cheaper than custom ones, but they also don’t require individual project development and calculations from scratch and the choice of each detail according to your taste. But they can be built as quickly as in a matter of 30 days, given that all permits have already been obtained.

But does a prefab ADU qualify to a customer’s expectations if it’s typical and manufactured without their participation? We make sure that the same quality standards are applied to prefabricated units as to custom-made ones.

ADU Housing

With everything said, A+ Construction & Remodeling offers amazing opportunities for those who’re dreaming of an ADU. Whatever your requests, we will find a way to fulfill them. No matter what your budget is, we will find ways to find you an ADU that you can afford or advise which loan will suit you.

Whether it’s a detached ADU cottage in your yard, a garage conversion, a granny flat, an ADU for guests, for earning extra income, or for any other purpose, A+ Construction & Remodeling will do a quality job in record time!

Frequently Asked Questions — FAQ

Is it cost-effective to build an ADU?

Yes. On the one hand, if you rent out an ADU for $2,000 per month in the long term, you will not only reimburse the cost of construction but will continue to generate passive income. On the other hand, if you plan to sell your house, a residential space supplement in the form of an ADU will add 30–40% to the price of the property.

What costs can I pay with an ADU grant from CalHFA?

Thanks to the CalHFA grant, a homeowner in California has the opportunity to cover all the expenses for the preliminary stage of the ADU unit construction. These include blueprints, impact fees, approvals, energy reports, etc. This $40,000 will come in very handy, especially in the case of impact fees, which can sometimes reach up to $10,000.

Can I get my ADU project in Sacramento financed by a cash-out refinance?

Sure, you can refinance. Taking this opportunity, you can choose an option with a lower interest rate on a loan and, at the same time, use the funds received to improve your living conditions. But to do this, you will need the percentage of your paid portion of the previous mortgage (your equity) to be at least the cost of the ADU.