Financing a Del Mar ADU
Most Del Mar owners fund ADUs with equity. Here are the common routes, without rate claims, since those change weekly.
Options
| Route | Consider |
|---|---|
| Cash | Simplest; no draw schedule |
| Home equity line | Flexible draws during construction |
| Cash-out refinance | Depends on your existing mortgage rate |
| Renovation or construction loan | Based on plans and an estimate; lender inspections |
The state grant
The CalHFA ADU Grant Program reported funds fully allocated as of December 28, 2023, and warns that anyone offering to help secure the grant may be running a scam.
What lenders want from us
Permit drawings, a written estimate and a schedule. We provide those; we don't arrange or broker loans.
Mortgage programs that recognize ADUs
| Program | What HCD's handbook says |
|---|---|
| FHA | Updated policies can count ADU rental income in qualifying income; the 203(k) rehabilitation loan may be used only for an attached ADU |
| Freddie Mac | Options to add an ADU to an existing home, or buy intending to rent or build one; ADU rental income can count |
| Fannie Mae | Financing to add an ADU, build a home with an ADU through construction-to-permanent financing, or buy a home with an existing ADU |
| CalHFA ADU Grant | Up to $40,000 for predevelopment costs; funds exhausted as of the handbook's writing |
Source: HCD ADU Handbook (March 2026).
We don't lend or quote rates. These programs are a starting point for a conversation with your lender.
Del Mar's own incentive
The Incentive Program trades a 500 sq ft floor area bonus for a 30-year low-income rental commitment, per the city's ADU verification form. That changes the financing picture: more floor area, but a capped rent for three decades. Model both before choosing.
What lenders tend to need from us
- Approved plans and the ADU permit
- A written scope and budget, including engineering and right-of-way work
- An inspection-based payment schedule
- Expected rent if you'll rent (the city's form asks for approximate monthly rent too)
Also checked Oct 14, 2026: Del Mar ADU Application Packet (Rev. 2024) · HCD ADU Handbook (March 2026).
Sources, checked Oct 14, 2026: CalHFA ADU Grant Program.
Questions
Is the CalHFA ADU grant available?
CalHFA reported the ADU Grant Program funds fully allocated as of December 28, 2023. CalHFA also warns that offers to help obtain the grant are scams.
What are common ways to finance an ADU?
Cash, a home equity line of credit, a cash-out refinance or a renovation/construction loan. A lender can tell you which fits.
Do you arrange loans?
No. We give lenders the plans and estimates they need, but we don't broker financing.