NPHS’ ADUgo Factory-Built Financing Program

What is a Factory-Built ADU?

ADUs have many names: granny flats, in-law units, backyard cottages, secondary units, and more. No matter what you call them, ADUs are an innovative, affordable, effective option for adding much-needed housing. Factory-built housing presents an opportunity to develop quality single-family homes and ADUs faster and at a lower cost.

Benefits of a Factory-Built ADU

Creates Additional Affordable Housing Options: Perfect option for growing families, seniors and low-income renters.

Quality construction: Prefabricated construction is made possible by state-of-the-art factory assembly line techniques.

Increased Property Value: While a substantial investment, in the long-term, an ADU can add value to existing property.

Additional Income: Homeowners can benefit from receiving rental income in the event that they rent out their ADU.

Environmentally Conscious: Factory-Built ADUs are constructed using environmentally friendly building techniques that minimize the waste of raw materials such as lumber.

ADU Special Financing

NPHS offers affordable financing options for the purchase and installation costs of a factory-built ADU. In the midst of an ongoing housing crisis, the ability to help finance an affordable Factory-Built ADU housing option has never been as important.

Up to $200,000

*Can be combined with the CalHFA ADU Grant Program

5.99% APR
20-Year Loan Term
Available to Income Eligible Homeowners

An Affordable Eco-Friendly Solution

Today’s factory-built ADU’s are hand crafted in dedicated home building facilities, staffed and supervised by professional teams in a secure environment. Homes are built indoors (meaning no weather delays) and factories allow for a greater degree of quality control for each home built. These facilities can build homes in a much faster and more cost-effective way than traditional home builders-meaning less cost for your new home.

Advances in offsite construction housing technology have made factory-built homes a more appealing ADU option on many levels. This innovation offers  customizable, energy-efficient, quality homes built faster, less expensive, and constructed using environmentally friendly building techniques.

  • Available to income-qualified homeowners who are ready to purchase a Factory-Built ADU for their primary residence
  • Up to $200,000 available for the purchase and installation of a Factory-Built ADU
  • Rates as low as 5.99% APR and subject to enrollment in ACH withdrawal for payments. Non enrolled homeowners will have a 7.25% APR.
  • 20-year loan term
  • No pre-payment penalty

  • Homeowner must have submitted approved plans to their local municipality for approval of construction and connected with a licensed contractor to get project estimates.
  • NPHS will provide financing for the Factory-Built ADU purchase along with any other construction related costs up to $200,000
  • CLTV not to exceed 85% at completion of project
  • Borrower must have a minimum credit score of 620
  • Families earning at or below 80% of the HCD household income limits for San Bernardino/Riverside/Los Angeles County
Household SIze Riverside/San Bernardino County Los Angeles County
1 $49,300 $66,750
2 $56,350 $76,250
3 $63,400 $85,800
4 $70,400 $95,300
5 $76,050 $102,950
6 $81,700 $110,550
7 $87,300 $118,200
8 $92,950 $125,800

Factory-Built ADU Financing Workflow

Step 1

Homeowner researches local permits regarding Factory-Built ADUs.

Step 2

Homeowner connects with Factory-Built ADU retailer to get pricing.

Step 3

Homeowner selects contractor to get estimates on job cost for on-site improvements.

Step 4

Homeowner contacts NPHS for Factory-Built ADU loan to finance the costs of ADU project.

Step 5

NPHS reviews homeowner’s application and required documents to determine Factory-Built ADU financing eligibility.

Step 6

If approved, NPHS will issue loan approval to homeowner. Homeowner to notify ADU retailer and contractor to commence project.

Step 7

NPHS issues payment for Factory-Built Housing ADU and issues progress payments for construction/installation.

Step 8

Enjoy the benefits of your new Factory-Built ADU.

 

CalHFA – California Housing Finance Agency

ADU Grant Program
NPHS has partnered with CalHFA to administer their ADU Grant Program. NPHS is specializing in assisting low-income families from the Inland Empire to access factory-built ADUs.
The ADU Grant provides up to $40,000 to reimburse pre-development and non-reoccurring closing costs associated with the construction of the ADU. Predevelopment costs include site prep, architectural designs, permits, soil tests, impact fees, property surveys, and energy reports.
Who is eligible?

Low-Income Homeowners

County Household Income Limit
Riverside/San Bernardino $75,600

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Factory Built ADU