ADU Costing & Financing Options

Building an accessory dwelling unit ADU is an investment that can increase your property value, provide rental income or create extra living space for family understanding the cost and financing options available can help you plan your project with confidence.

The cost of an ADU varies based on size, design, and construction materials, but here are some general ranges for ADUs in Stockton and San Joaquin County:

Detached ADU: (Standalone Unit): $150,000-$300,000+

Attached ADU (Connected to Main House): $100,000- $250,000+

Garage Conversion: $50,000-$150,000+

Junior ADU(JADU-Converted Interior Space): $40,000- $100,000+

* These estimates include design, permits, site preparation, materials, labor, and utility connections, but final costs can vary based on your specific project and market conditions.

Several factors can influence the overall cost of your ADU project:

• Size & Layout- Larger ADUs and more complex designs require more materials and labor.
• Permits & Fees- City and county fees vary but are required for all ADU projects.
• Site Conditions- Sloped lots, older homes, or major utility upgrades can increase costs.
• Finishes & Materials- Custom finishes and high-end materials add to the total price.
• Utility Upgrades- New electrical, plumbing, or sewer connections may be required.
• Title 24 Energy Compliance- California requires energy-efficient building standards, which may impact construction costs.

At Home Heart Construction we provide a detailed estimate taylor to your specific needs so you know exactly what to expect before starting your ADU project.

We understand that funding an ADU is a big decision. Luckily, there are several financing options available in California to help homeowners cover construction costs.

1. Home Equity Loan or HRLOC

Best for homeowners with existing equity

• Borrow against your home's equity with a fixed loan or line of credit.
• Lower interest rates compared to personal loans.
• Monthly payments vary based on loan terms

2. Cash-Out Refinance

Best for homeowners looking to refinance their mortgage

• Replace your current mortgage with a new one and take out extra cash for your ADU.
• Can provide a lump sum for construction at a lower interest rate than personal loans.

3. Construction Loans

Best for homeowners building a new ADU from the ground up

• Short-term loan that converts into a mortgage after the ADU is built.
• Based on future property value, not just current equity.

4. ADU Grant Programs (Limited Availability)

• California's CalHFA ADU Grant offers up up $40,000 to cover pre-construction costs.
• Grant covers permits, designs, soil tests, and impact fees but does not cover full construction.

5. Rental Income & Private Lenders

Best for homeowners looking to create rental income

• Consider private loans or investment partners if using the ADU for rental income.
• Some lenders offers ADU-specific financing based on future rental value.

If you're not sure which financing option is best for you, Home Heart construction can guide you through the process and connect you with trusted lenders.

* Disclaimer

The cost and financing options listed above are estimates based on current market trends and may very depending on your specific project, materials, site conditions and regulatory changes. Home Heart Construction is not a lender and does not guarantee loan approvals. All financing options should be discussed with a licensed financial professional. Homeowners are encouraged to verify local regulations and updated financing programs before proceeding with their ADU project..