ADU Builders

ADU builders are in high demand as many homeowners now look for more flexible housing solutions. Accessory Dwelling Units, or ADUs, are secondary living spaces added to residential properties. Also known as secondary suites and granny flats, these smaller units can be used for various purposes, including generating rental income or providing private living space for guests and family members.

At RenoFi, we take pride in helping homeowners like you make informed decisions through guides like this one. This guide explains how ADU builders simplify the process of creating these units. We’ll cover popular floor plans, the benefits of working with experienced builders, financing options, and more.

Benefits of Building an ADU

• Increased Property Value: One of the main advantages of ADUs is that they can significantly boost the value of your home. According to some estimates, homes with ADUs can see a boost in value of up to 25% or more, especially in big cities.
• Rental Income Generation: Renting out your ADU can earn a steady stream of passive income. An experienced ADU builder can design layouts and features that will make your unit attractive to potential tenants.
• Accommodating Multigenerational Living: If you have aging parents or adult children, an ADU can give your loved ones their own private space while keeping them close. This arrangement allows for both privacy and togetherness and creates a supportive and comfortable living situation for multiple generations under one roof.
• Flexible Living Space: You can use the extra space for different purposes, including a home office or guest suite. The added space gives you the flexibility to use it however you need.
• Sustainable Living: Many ADU designs come with eco-friendly features like energy-efficient windows and solar panels that can cut down your utility bills. And because they are typically smaller, having an ADU means reducing your carbon footprint.

Choosing the Right ADU Builder

When it comes to bringing your ADU idea to life, you may be wondering if you should start with an ADU builder, designer, architect, consultant, or general contractor. Things can get messy when you work with separate professionals because there is less accountability and a high potential for conflicts of interest. Instead, it’s a good idea to choose one design-build ADU construction company.

Here’s why:

The same team will handle the entire process, including designing, permitting, and building your ADU on budget. Their goals are fully aligned with yours, meaning the whole project has to be a success and done quickly.

When you choose one reputable expert from your local ADU builders who offer comprehensive design-build services, you’ll have a much smoother, more efficient process. There’ll be no need to coordinate multiple contractors and professionals, which reduces delays and miscommunications.

Additional Tips for Selecting an Experienced ADU Builder

• Verify the builder’s license and check their portfolio of completed ADU projects. Make sure they have experience with local ADU regulations and permitting processes.
• Look for a builder familiar with your city or county’s ADU guidelines and zoning laws.
• Find out the builder’s warranty coverage for their work. Be fully aware of the terms and duration of any guarantees they provide.
• Compare quotes from several ADU builders to ensure you’re getting a fair and competitive price.

Benefits of Working With Expert ADU Builders

• Easy Permit and Construction Process: Beyond the physical labor, building an ADU typically involves handling lots of paperwork, permits, and regulations, which can be overwhelming for homeowners. But when you partner with an experienced ADU builder, they’ll handle all of that for you. They know exactly how to sort through the local requirements, so you don’t have to stress about it.
• Meeting Local Regulations and Building Codes: Speaking of regulations, expert ADU builders are well-versed in the latest building codes and zoning laws in your area. Aside from making sure your new living space looks great, they’ll also ensure it is fully compliant so you can have peace of mind.
• Helping You Understand Your Options: Experts can help you figure out the best ADU type for your needs and budget. They can develop a plan that fits your unique situation.
• Custom Architectural Plans for You: Once you have the plan in place, the experts can bring it to life with custom design services. They’ll work with you to create an ADU that meets your functional requirements and reflects your personal style.
• Organized Construction and Management: An ADU might be a smaller unit, but building it can be a complex undertaking. There are usually multiple moving parts, no matter how simple your project may be. An expert builder can coordinate with subcontractors, oversee timelines, and make sure everything runs smoothly.
• Support After Construction Is Done: After your ADU is complete, experts are still available to offer support. They can provide warranty services, maintenance advice, and any other assistance you might need to keep your new space in top shape for years to come.

Types of ADUs

• Detached ADUs: This type of ADU is a separate structure from the main house, usually at the side of the house or in the backyard. Detached ADUs are very flexible in design and offer the most privacy. ADU builders can help you make the most of your backyard space with a custom-designed detached unit.
• Attached ADUs: An attached ADU is connected to the main house. This option is often built above the garage or shares a wall with the main house. In many cases, attached ADUs share utilities with the main residence, so they’re usually cheaper than detached options. Expert ADU builders can help you integrate an attached ADU into your existing home’s design.
• Garage Conversion ADUs: These ADUs are created by turning garages into livable spaces. This is especially suitable if you hardly use your garage space. Garage conversion ADUs usually include open areas that combine your living, dining, and kitchen spaces, along with one or more bedrooms and a bathroom. They are usually more cost-effective because you can add living space without needing to build new structures.
• Basement ADUs: This option uses the lower levels of your home to create extra living space. It’s great for expanding your living areas without changing the outside of your house. Basement ADUs usually share existing utilities with your main house while providing privacy.
• Junior ADUs (JADUs): JADUs are small units inside or attached to single-family homes. In most cases, they are created by converting an attic, basement, or other extra space inside your house. JADUs typically have one room that serves as a living and sleeping area, a small kitchen area, and a bathroom.

Common ADU Floor Plans

ADUs come in various floor plans and layouts to suit different homeowners’ needs. Here are some of the most popular options:

• Studio Layout: A studio ADU is a compact living space that combines the living and sleeping area with a kitchenette. This single-room layout is simple and efficient and gives you the basic amenities within a smaller footprint, which is why it’s a popular choice for smaller ADUs.
• L-Shaped Layout: An L-shaped ADU layout is a design where the living space forms an “L” with another functional area, like the kitchen or bedroom wing. This layout can be more spacious than a linear layout, and it’s a good option for ADUs with limited space.
• One-Bedroom ADU: This layout includes a separate bedroom and bathroom, in addition to a living room and kitchen. Because it offers more privacy and functionality, this type of layout is ideal for a rental property, guest house, a single person or couple.
• Two-Bedroom ADU: This design has two bedrooms and one bathroom, as well as a living/kitchen area. Depending on the space you have, a two-bedroom ADU can be configured in a single-story or two-story layout. It is suitable for a small family home or rental property.
• Open Floor Plan: Many ADU designs feature an open floor plan, where the living spaces have little to no walls separating. This can make a small space feel larger and more versatile.

Customization Options for ADUs

ADUs are super flexible, meaning you can customize them exactly how you want. Here are some of the ways you can make the extra space uniquely yours.

Materials and Finishes

You have several options when it comes to picking the materials for constructing the different parts of your ADU. These include:

• Roofing: Asphalt shingles, metal roofing, and tiles are all durable, weather-resistant options that come in a variety of styles. Metal and tile roofs can last for a considerably longer time.
• Siding: Wood, stucco, fiber cement, and metal siding each offer a unique aesthetic. Wood siding gives your space a warm, natural look, while stucco and fiber cement offers a clean, modern feel. If you prefer a durable, low-maintenance option, a metal siding is a good choice.
• Windows and Doors: Energy-efficient windows and stylish entry doors can enhance the function and curb appeal of your ADU. Look for windows with high insulation values to keep your living spaces comfortable year-round.
• Interiors: Hardwood, laminate, or tile floors create a polished look in your ADU. Custom cabinets and high-end appliances in the kitchen add a luxurious touch.

Your ADU builder will guide you on the pros and cons of each material to help you pick what fits your vision and budget.

Design Styles

The exterior and interior of your ADU can be styled to match your main home. Some popular ADU design styles include:

• Modern/Contemporary: These feature clean lines, large windows, and minimalist styles for a sleek, urban look.
• Craftsman: This style includes using natural materials like wood, exposed beams, and detailed woodwork for a warm feel.
• Traditional: This design uses classic elements such as gabled roofs for a timeless look.

Financing Options for ADU Construction

Building an ADU is a big investment, but the good news is there are plenty of ways to finance your project.

• Home Equity Loans or Home Equity Lines of Credit (HELOCs): You can tap into the equity you’ve built up in your home to fund your ADU project. With a home equity loan or RenoFi HELOC, you can borrow against that equity at a lower interest rate than other types of loans.
• Refinancing Your Mortgage: If you have substantial equity in your home, refinancing your mortgage is a good way to access funds to put toward your ADU project. And if interest rates have dropped since you first got your mortgage, you might even get a lower rate in the process.
• Grants and Incentive Programs: Depending on where you live, you could get grants or other incentives from state and local government programs to build your ADU.
• ADU-Specific Loans: Some lenders offer special loans designed just for ADU construction. These loans are super flexible and can cover from design and permits to the actual building. You can use this RenoFi tool to pre-qualify for an ADU loan and find a lender.

Financing With RenoFi

ADUs not only increase your home’s value after renovation but can also generate rental income. However, ADUs are costly. If you don’t have enough equity in your current home, funding ADU construction with a home equity loan is impossible, unless you use RenoFi. 

For example, let’s say your current home value is $500,000, and your outstanding mortgage balance is $400,000. You are planning on adding an ADU and expect the value of your home to increase to $640,000. Your current loan-to-value ratio (LTV) is already at 80%, which means that most home equity loans are out of reach because that’s the maximum LTV they allow. So, your borrowing power using your current equity is $0.

RenoFi, on the other hand, would allow you to go as high as 150% LTV of your current value or 90% of your after renovation value, whichever is lower. So, in this example, while using a standard home equity loan results in your borrowing power being $0, a RenoFi loan allows you to borrow up to $176,000 by using the after renovation value of your home!

Get started with your RenoFi loan here

Bringing Your ADU Vision to Life

Beyond giving you the best design and construction for your project, experienced ADU builders also make sure your secondary suite meets all local building codes and regulations. But you’ll need more than just great designs to turn your ADU from a plan into a reality in your backyard.

That’s where financing comes in. Even the most basic ADUs can cost up to $100,000 or more, depending on the size and location. Most homeowners will need to take out a loan to build an ADU. If that’s you, RenoFi can help you get the funds you need to bring your vision to life, even if you don’t have enough equity to qualify for a traditional home equity loan or cash-out refinance.

RenoFi loans are the smartest way to finance a home renovation project. Unlike traditional loans, which are based on your current home value or require you to refinance your primary mortgage and give up your low rate, RenoFi loans are based on the after-renovation value of your home. This allows you to borrow, on average, 11x more, get a low monthly payment, and keep your low rate on your first mortgage.