Renovation Loans &

Financing ADUs

Use Renovation Loans to Upgrade Your Home or Build Your ADU

Explore how renovation loans can finance the construction of your Accessory Dwelling Unit (ADU) with our guide. Learn about loan options, application processes, and cost management for ADU projects. Whether for rental income or extra living space, this guide helps you leverage financial tools to enhance your property's value and functionality.

Home Renovations

  • Luxury Upgrades

  • Kitchen Remodel

  • Bathroom Remodel

  • Roof Replacement

  • Home Office

  • Build a Pool

  • Build a Deck

  • Additional Attached Rooms

  • Story Additions

  • Free Standing ADU or Office

These programs can be much lower-costing than financing with a HELOC, private money loans, or credit card.

Program Criteria & Financing:

Purchase or Refinance

You can use this type of renovation loan to purchase a new property, or refinance the current home you own.

VA, FHA, or Conventional Financing

This program can go across the traditional conventional to government VA or FHA financing. Guidelines are similar with the addition of having construction loan built in.

Low Down Payment

As low as:

  • 0% for VA loans

  • 3.5% for FHA loans

  • 3% for conventional loans

First-time buyer criteria may be required

Temporary Rate Buy Down

Temporary rate buy downs may be offered on new purchases

  • 2-1 buy down

  • 1-0 buy down

  • Primary and second home only

Contractors for Renovation

  • License, bond, insurance ($1MM min) (or local issuing authority requirements), and a current W9

  • Contractor Profile Report (Form 1202)

  • Including demonstrated experience in renovation lending and a minimum of three references of similar work in cost and nature completed within the last 12 months.

  • Document a demonstrated financial ability to sustain projects.If mold abatement, lead-based paint abatement, or radon abatement, the contractor must be licensed under those specific trades.

  • May run a background report on contractors.

  • Only one general contractor is allowed.

Draw process & Lien Waivers

  • Up to five draws are allowed.

  • Draws are advanced only upon completion of work as evidenced by HUD Consultant inspection

  • Draws will not be approved for work that is not yet complete, including not yet installed materials.

  • Lender will set up an interest-bearing repair escrow account, to fund the remaining disbursement. Any interest is applied as principal reduction to the loan.

  • Lien Waivers must be provided at the time of each draw. FNMA Form 3739 may be used.

  • If an occupancy certification is required, this must be provided prior to the issuance of the Finance Release Notice.

  • A 10% holdback is requirement on each draw release. The total of all holdbacks may be released only after the final inspection and issuance of the Final Release Notice is received from the borrower, HUD Consultant and inspector, as applicable.

  • Lender will order a final inspection by the original appraiser.

  • Title must be cleared before the final draw.

  • Funds will be made available via a two-party check payable to the borrower and contractor.

Contact Us Today

Ready to upgrade your home?

Reach out to us at 949-799-4329 and let's start this journey together.


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Equal Housing Opportunity © 2023 Apache Mortgage Inc, 695 Town Center Dr., Suite 1200, Costa Mesa, CA 92626, 949-799-4329. NMLS ID # 2454357 DRE # 02209550. For licensing information go to Trade/service marks are the property of Apache Mortgage Inc and/or its subsidiaries or affiliates. Information is intended solely for mortgage bankers, mortgage brokers, and financial institutions. For more information, review Apache Mortgage Inc's state licenses and important notices. Co-op loans not available. Some products may not be available in all states. Information, rates and pricing are subject to change without prior notice at the sole discretion of Apache Mortgage Inc, Mortgage Broker. All loan programs are subject to borrowers meeting appropriate underwriting conditions. This is not a commitment to lend. Other restrictions apply. [06-2023]