Paying for an ADU in Solana Beach
Most owners use home equity. Common routes: cash, a home equity line, a cash-out refinance or a renovation/construction loan. A lender can tell you which fits.
State grant
The CalHFA ADU Grant Program reported funds fully allocated as of December 28, 2023, and warns that offers to help secure the grant may be scams.
Cost levers within the rules
- Conversions: no parking, no new utility connection, no solar requirement
- Under 750 sq ft: no impact fees
- Unmodified PADU plans: streamlined, lower-cost review
Mortgage programs that recognize ADUs
| Program | Per HCD |
|---|---|
| FHA | ADU rent can count; 203(k) only for attached ADUs |
| Freddie Mac | Add or buy to build; ADU rent can count |
| Fannie Mae | Add, construction-to-permanent, or buy with an existing ADU |
Rentals here must be longer than 30 consecutive days, so lenders will look at monthly, not nightly, rent.
Also checked Oct 14, 2026: HCD ADU Handbook (March 2026).
Sources, checked Oct 14, 2026: CalHFA ADU Grant Program · Solana Beach ADU Submittal Process and Basic Plan Requirements (June 2025) · Solana Beach PADU Processing Guide.
FAQ
Is there a state ADU grant?
CalHFA reported its ADU Grant Program funds fully allocated as of December 28, 2023, and warns of scams offering grant help.
Do you arrange financing?
No. We provide plans, estimates and schedules for your lender.
What's the cheapest ADU route?
Often a garage or interior conversion, since the city waives parking and new utility connections for conversions.