ADU Financing in San Diego at a 1% Fixed Interest Rate: Here’s How To Get It

If you’re a homeowner residing in the City of San Diego and looking to build an ADU on your property while searching for ways to finance your project, the new SDHC ADU Finance Program is for you!

Learn about the Program and find out if you qualify for financing

Fernanda Castillo

The San Diego Housing Commission‘s (SDHC) ADU Finance Program provides construction loans of up to 250k with a low 1% fixed interest rate to qualifying homeowners.


Who’s the SDHC?


Program Eligibility


Construction Loan Details

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Who is the SDHC?

Before going into full detail about the program, we need to know who SDHC is and what they do!

The San Diego Housing Commission promotes social and economic stability for vulnerable populations in the City of San Diego through many initiatives, including affordable housing, opportunities for financial self-reliance, and solutions to address homelessness. With a commitment to enhancing the well-being of residents, SDHC plays a vital role in shaping the housing landscape and improving the lives of individuals and families in the community.

SDHC ADU Financing Program

If you’re a homeowner, you may have noticed the current popularity of ADUs nationwide. Not only do they provide extra living space for your family, but they also have the potential to generate additional income through rentals!

However, constructing one of these units can be more challenging than it appears. The process involves permits, design, construction logistics, and even legal obligations, which can be overwhelming as to where to begin if you take on the project yourself.

And that is why the SDHC came up with the ADU Finance Program! This initiative was created to assist homeowners looking to generate a second source of income in building an Accessory Dwelling Unit in their properties through construction loans of up to $250,000! Furthermore, the program contributes to making housing in the City of San Diego more affordable as the rents for the ADUs constructed with the program’s assistance must stay affordable for seven years.

Now, you may be wondering: How do I qualify? Let’s jump right onto what you need and how you can apply.

Finance your ADU project with SDHC and Multitaskr

Program Eligibility

We’ve got you covered with all the information you need to determine if you’re eligible to start your exciting ADU journey. We’ll explore the key criteria to qualify, from income thresholds to property ownership specifics!

  • Have an income of up to 120% of San Diego’s Area Median Income, for example, $128,300 annually for a family of four.
  • Residential property (detached single-family residence) in the City of San Diego
  • The main home must be owner-occupied.
  • Minimum Credit Score of 680.
  • The owner’s contribution equals 1% of the construction loan amount. For instance, if you get $200,000 for your loan, you’ll have to pay $2,000.

If you meet all criteria, click here to visit Multitaskr application page.

Construction Loan Details

Embarking on your ADU project in San Diego requires a solid financial foundation, and that’s where the SDHC ADU Finance Program offers a comprehensive construction loan package designed to empower homeowners just like you. Here’s a closer look at the terms and conditions:

  • Loan Amount: One of the standout features of this program is the substantial loan amount it offers, with homeowners eligible for construction loans of up to $250,000!
  • Favorable Interest Rate: With an impressively low fixed interest rate of just 1%, you can rest assured that your financing costs will remain manageable even as your ADU project progresses.
  • Flexible Loan Term: You won’t have to worry about the repayment as the loan term offers ample flexibility and is deferred until take out. This means you have up to three years to complete your project before you start repaying the loan, giving you plenty of time to concentrate on the construction process.
  • Loan-to-Value Ratio: Accessing the funds you need is more accessible with a maximum Loan-to-Value (LTV) ratio of 75%.
  • Debt Ratio and Credit Score: The program is designed to accommodate various financial situations. With a debt ratio of up to 50% and a minimum required credit score of 680, it provides flexibility while ensuring homeowners meet specific financial standards.
  • Initial Owner’s Contribution: To participate in this program, homeowners are asked – to contribute an initial amount equal to 1% of the construction loan amount.
  • Affordability for Renters: The program doesn’t just benefit homeowners by understanding the potential rental income an ADU can generate; it also contributes to the creation of affordable rental housing in San Diego. The ADUs built with assistance from this program must remain affordable for seven years for renters with income up to 80% of the Area Median Income (AMI). This ensures that more individuals and families can access affordable housing options in the city.
Increase your property value with an ADU

How Multitaskr Can Help You

At Multitaskr, we provide comprehensive support for our ADU project. We have you covered from the initial stages of determining zoning feasibility to securing financing and creating permit drawings. Once your project is underway, we handle all aspects of construction to ensure that everything is completed to your satisfaction. Our goal is to make the process as seamless and stress-free as possible so that you can enjoy the benefits of your new ADU without any hassle.

Next Steps

And there you have it! If you’re a homeowner in the City of San Diego, the SDHC ADU Finance Program presents a golden opportunity to turn your ADU vision into reality. This visionary initiative, facilitated by SDHC, empowers homeowners like you to confidently embark on your ADU project, offering comprehensive financial support and guidelines.

Don’t miss out on this remarkable opportunity, and take the first step toward your project today. Visit our application page here to explore how Multitaskr and the SDHC ADU Finance Program can bring your ADU dreams to life!

Book a Free Consultation to see how you could benefit!

Book a Free Consultation

Book a Free Consultation!

We’re your

one-stop-shop home solutions marketplace

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