Pasadena offers New Financing for ADUs
Pasadena Launches new round of ADU Financing (2/10/25)
This program is a fantastic opportunity for homeowners to build affordable rental units on their properties with comprehensive assistance. Here are some key points:
Program Overview
Loan Amount Up to $225,000 for new ADU construction or converting existing unpermitted units.
Interest Rate: 1% simple interest with deferred payments, and an option to refinance with a silent City 0% loan up to $100,000.
Eligibility Requirements
– Credit score above 650
– Debt-to-income ratio below 40%
– Combined mortgage and ADU loan under 80% of home value
– Home value cannot exceed $1,158,000 (95% of area median)
– Must be current on existing mortgage
– Cannot have existing loan with the City
– Must be a U.S. citizen or permanent resident
– Property must be within Pasadena city limits
– Applications are accepted from January 13 through February 28, 2025
Key Dates & Participation
More Info Visit the City’s Housing Department website or contact Program Coordinator Randy Mabson
For more details and to apply, you can visit the program’s [official webpage](https://www.cityofpasadena.net/housing/second-unit-adu-program).
This program provides a great way to help increase affordable housing in Pasadena while also offering homeowners some financial support. What do you think about this initiative?