Looking to Add an ADU (Accessory Dwelling Unit) to Your Property?
Are you ready to expand your space at home? HFS Financial knows the addition of an accessory dwelling unit, or ADU, is a wonderful way to add more space and more freedom where you need it the most.
An ADU Can Take Many Forms
The wonderful thing about ADUs is that they come in so many forms. There isn’t a one-size-fits-all solution that works for the needs of every family. Whatever you are looking to use your extra space for, it can likely be considered an ADU if it’s a livable space. And even if it isn’t, HFS can likely still help you finance it.
One of the most popular options for an ADU is an in-law suite or granny flat. This is a space built specifically for your grandparents, parents, or in-laws. They can move into your home, whether it be to help with younger children or so that you can help them retain independence while still having their own living space close by.
Place this type of ADU in its own building in the backyard or side yard – wherever there is space. You can even place these types of ADUs in a basement, converted garage, or as an add-on to the house. We just recommend keeping stairs at a minimum and making sure it has its own easy-access entrance.
Converting the space above a garage is another classic ADU design. This is also convenient since accessing the infrastructure of water and electrical connections will be easier so close to the primary residence.
Use these spaces to house older children who aren’t ready to find a place of their own yet, or rent it out for extra income. As long as there is a private entrance, you can make the most of this space so that everyone involved will enjoy living there.
Design it as a studio apartment with one large room containing a kitchenette, seating area, and sleeping area. Then you can create a small bathroom space to afford some privacy.
Be sure to include adding extra parking for your ADU when you are evaluating how much you will need for the loan application.
Another classic ADU design is a pool house or a guest house. This is an excellent space for an ADU because so much can be done with it.
The outside of your pool house can be a space for entertaining your pool guests, complete with restrooms and an outdoor cooking and serving area. Inside can be designed as a sleeping area for overnight guests or even long-term guests.
You can also add things like a home gym or office to parts of your pool house when building it. Make it as large as you need to hold all of the things your primary home lacks. Then you are just a few steps away from everything you want in a private space.
Finally, you can convert a shed into an ADU. The ever-popular she shed is a wonderful space where you can craft or do your favorite hobbies in the comfort of a designated space.
To make sure it qualifies as an ADU, you will want to insulate things well and add a bathroom and maybe a kitchen to make things liveable.
The sky’s the limit with an ADU. As long as someone can live there, it can be called an ADU.
So, whether you are planning on building an in-law suite, an over-the-garage apartment for your college student, a backyard flat for grandma, or an on-site rental at your primary residence, an ADU is a great way to expand your space.
ADUs Are Cost Effective
A cost-effective addition to your primary residence*, these extra dwellings are becoming more and more popular. Electrical and water connections are easy to utilize, and the additional space can increase both the desirability and the equity of your home.
If you are working in a space that is already attached to your existing home, you will save tons of money. Revamping a space can be much more budget-friendly than starting from scratch.
Even if you plan to build a guest or pool house, the land you are building on is already prepared and ready to go. The water and electrical hookups are nearby, so you won’t spend extra having professionals come and run all of those again.
You will also likely already have some landscaping and parking available. This cuts down on all the costs associated with building something on completely separate land.
What Should I Include in My ADU?
A Private Entrance
If you are planning on renting out your ADU at any point, we highly recommend placing a private entrance. No one wants someone renting their home traipsing through the main part of the house at all hours.
Having a separate entrance will save you a lot of heartache in the long run (even if it is with your college-age kid). With your tenant’s own entrance and living space, people of all ages will adore the addition designed to give them privacy and freedom.
Another highly recommended addition to your ADU is a kitchen or a kitchenette. While this is a more costly addition to your ADU, it will make it that much more valuable.
If your in-laws are moving in, it will be nice for them to have their own space to cook instead of hovering over your shoulder in the kitchen. And if you plan to rent the space, you don’t want someone you aren’t as familiar with needing to come into your home to use your personal kitchen space.
A private bathroom is a no-brainer, and you have likely already thought about it. Everyone likes their solitude in a bathroom. You can make things as simple or as elaborate as you like.
If the space is a rental, we would recommend sticking to the basics, since you won’t know personal preferences and tenants may change.
If you are preparing the space for a specific loved one, you may want to consider any special needs or requests they have, including handicap access or intercom access to the main house.
Finally, people will need somewhere to sleep. You can make the sleeping space, the living space, and the kitchen all one area if you like. This can save you money and make things simpler when building.
If you want to charge more when renting, you can make a separate bedroom space that is more elaborate. It is truly up to you.
If you don’t already have it, you will want to add in extra parking for whomever is moving in. Most people will find it inconvenient to park on the street all the time, and you certainly don’t want a vehicle constantly parked in your grass.
Whether you choose a DIY prefab kit or you hire a contractor for a custom build, your new space will be absolutely perfect.
How to Finance Your ADU
When you are ready to finance your new project for your primary residence, HFS Financial is your trusted ally for the best ADU financing. Apply today to find the loan rates and terms that make adding your new addition easier than ever. With HFS Financial, “You Dream It, We Finance It.”
*ADU loans are available for PRIMARY RESIDENCES ONLY. Excludes second homes, rental properties, land additions, or other non-primary residential or non-residential applications.