How to Finance an ADU in San Jose 2025 — Best Loan Options and Programs

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Quick Answer: The best ways to finance an ADU in San Jose in 2025 are: (1) Cash-out refinance if you have significant equity and can get a favorable rate on the full balance; (2) HELOC (Home Equity Line of Credit) — draw funds as needed during construction, then potentially convert to a fixed-rate loan; (3) Construction loan (ADU-specific) — several Bay Area lenders offer ADU-specific construction-to-permanent loans; (4) CalHFA ADU Grant — California Housing Finance Agency offers up to $40,000 in grants for ADU predevelopment costs (eligible low-to-moderate income homeowners); (5) RenoFi loans — a newer product that calculates your loan limit based on the after-renovation value of the property, not the current value.

ADU Financing Options in San Jose 2025

Helpful Resources:

Financing Option	How It Works	Best For	Pros	Cons
Cash-out refinance	Refinance your entire mortgage at a higher amount, receive the difference in cash	Homeowners with 40%+ equity who can get a rate better than 7.5%	Single loan; potentially long-term fixed rate	Resets your entire mortgage; closing costs 2-4%
HELOC	Revolving line of credit secured by your home equity; draw as needed	Phased ADU projects; homeowners wanting flexibility	Draw-as-needed; only pay interest on what you borrow	Variable rate; converts to repayment phase after 10 years
ADU construction loan	Short-term loan during construction, converts to permanent mortgage at completion	New ADU construction with no existing equity to tap	Structured for ADU process; interest-only during construction	Higher closing costs; two loan processes (construction + perm)
CalHFA ADU Grant (up to $40k)	Grant for predevelopment costs (design, permits, plans) — does not need to be repaid	Low-to-moderate income San Jose homeowners	Free money — no repayment required	Income limits apply; only covers predevelopment; must use approved lender
RenoFi loan (HELOC or home equity)	Loan limit calculated on after-renovation value, not current value	Homeowners with limited current equity but high post-ADU value	Higher borrowing limits than traditional HELOC	Newer product; fewer lenders offer it; somewhat higher rates
Personal loan / unsecured	Unsecured loan, no collateral	Very small ADUs or gap funding	No home lien; fast approval	High rates (8-18%); limited to $50k-$100k typically

CalHFA ADU Grant — San Jose Eligibility

The CalHFA ADU Grant Program provides up to $40,000 for predevelopment costs (architecture, design, permits, fees, soil testing). Requirements: owner-occupied single-family home; income must be 80% or below the Area Median Income (AMI) for Santa Clara County (check CalHFA.ca.gov for current income limits); must use a CalHFA-approved lender; the ADU loan must be originated through the approved lender. This grant has historically had periods where funding is exhausted — check current availability at CalHFA.ca.gov. If the grant is not currently funded, check with local Community Development Financial Institutions (CDFIs) which sometimes offer local ADU programs.

Quartz Construction works with multiple ADU financing programs and can refer you to lenders experienced with ADU construction loans in San Jose. Learn about ADU construction. CSLB #1003436 | Call (650) 749-7436.

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What our clients say on Google

Verified reviews from our Google Business Profile. See all reviews on Google.

      
   Quartz Construction
   65 Google reviews 
  Write a review 
  
 
 
   
 
 
       Posted on Google  
   
   Perry Finch 
 
 
 
 Trustindex verifies that the original source of the review is Google. We’re so happy with the work Hila and her team did on our home addition. The new space flows beautifully with the existing structure, and the quality is clear in every finish. Finished on schedule and stress-free.
  
 
      Posted on Google  
   
   Joy Ruther 
 
 
 
 Trustindex verifies that the original source of the review is Google. Working with Ohad on our full home remodel was an incredible experience. He helped us through every decision and made sure everything turned out exactly how we envisioned. The team was easy to communicate with and super detail-focused. We still can’t believe how beautiful our home looks!
  
 
      Posted on Google  
   
   Ajay Mukhopadhyay 
 
 
 
 Trustindex verifies that the original source of the review is Google. We recently worked with Quartz Construction (Owner: Ohad) for a construction project to remodel our Bathroom
and we couldn’t be more pleased with the results. From start to finish, their team demonstrated professionalism, and exceptional craftsmanship.

They maintained clear communication throughout the project, kept us informed of progress and any potential changes, and delivered everything on time and within budget. Their quality of work is outstanding — every detail was handled with care and precision.

What stood out most was their commitment to customer satisfaction. They were responsive to our questions, respectful of our space, and ensured that the final outcome matched our vision perfectly.

If you're looking for a reliable, skilled, and trustworthy construction contractor, I wholeheartedly recommend Quartz Construction ( Ohad and his team) .They exceeded our expectations in every way.

Ajay
  
 
      Posted on Google  
   
   debbie curley 
 
 
 
 Trustindex verifies that the original source of the review is Google. I had a fantastic experience working with Quartz Construction And Remodeling. Ohad Maloul the owner was professional communicative and a pleasure to work with from start to finish. His team repaired and painted my backyard pergola and the quality of their work was truly excellent. They were always on time, friendly and responsive to any questions I had throughout the process. I appreciated the clear communication and attention to detail. I’m excited to work with Ohad and his team on future projects and highly recommend them to anyone looking for reliable, high-quality construction or remodeling services.
  
 
      Posted on Google  
   
   Harry Lewis 
 
 
 
 Trustindex verifies that the original source of the review is Google. Hila managed our balcony addition project with care and precision. The design complements our home perfectly, and the build quality is outstanding. She communicated every step and made the whole process easy. We’re thrilled with the result!
  
 
      Posted on Google  
   
   Qi Lei 
 
 
 
 Trustindex verifies that the original source of the review is Google. I had the chance to work with Ohad and his construction team on a recent home project, and I was really impressed. Ohad is professional, easy to communicate with, and genuinely cares about the quality of the work. The crew showed up on time, kept the work area clean, and finished the job on schedule. It’s hard to find contractors who are reliable and transparent these days, but Ohad delivered on everything he promised. Would definitely recommend if you’re looking for someone who takes pride in their work and keeps things straightforward.
  
 
      Posted on Google  
   
   Boris Tyron 
 
 
 
 Trustindex verifies that the original source of the review is Google. We’re so happy with the work Quartz Construction did on our backyard. Ohad’s team designed and built a gorgeous deck and patio that turned the area into a dream space. The quality and detail are fantastic. Highly recommend!
  
 
      Posted on Google  
   
   Gloria Collin 
 
 
 
 Trustindex verifies that the original source of the review is Google. Quartz Construction built the most beautiful pergola in our backyard, thanks to Ohad. He was easy to work with, listened to our needs, and delivered a structure that’s both stylish and durable. We now have a shaded space where we can relax and entertain guests.
  
 
      Posted on Google  
   
   Dustin Walsh 
 
 
 
 Trustindex verifies that the original source of the review is Google. They built a beautiful, durable pergola that fits our outdoor space perfectly. Hila paid close attention to both style and quality. We now have the perfect spot for lounging, gatherings, and enjoying every season.
  
 
      Posted on Google  
   
   Paul Wilins 
 
 
 
 Trustindex verifies that the original source of the review is Google. We feel incredibly lucky to have worked with Hila. She made the ADU process simple and stress-free, handling everything with care and professionalism. The final space is perfect—efficient, elegant, and exactly what we hoped for. Big thanks to her and the whole crew!
  
 
  
  
 
     Verified by Trustindex  Trustindex verified badge is the Universal Symbol of Trust. Only the greatest companies can get the verified badge who has a review score above 4.5, based on customer reviews over the past 12 months. Read more

Get a Free Estimate from Quartz Construction

Licensed General Contractor • CSLB Lic#1003436 • Serving San Jose, Santa Clara & Bay Area

Google Reviews — What Our Clients Say

      
   Quartz Construction
   65 Google reviews 
  Write a review 
  
 
 
   
 
 
       Posted on Google  
   
   Perry Finch 
 
 
 
 Trustindex verifies that the original source of the review is Google. We’re so happy with the work Hila and her team did on our home addition. The new space flows beautifully with the existing structure, and the quality is clear in every finish. Finished on schedule and stress-free.
  
 
      Posted on Google  
   
   Joy Ruther 
 
 
 
 Trustindex verifies that the original source of the review is Google. Working with Ohad on our full home remodel was an incredible experience. He helped us through every decision and made sure everything turned out exactly how we envisioned. The team was easy to communicate with and super detail-focused. We still can’t believe how beautiful our home looks!
  
 
      Posted on Google  
   
   Ajay Mukhopadhyay 
 
 
 
 Trustindex verifies that the original source of the review is Google. We recently worked with Quartz Construction (Owner: Ohad) for a construction project to remodel our Bathroom
and we couldn’t be more pleased with the results. From start to finish, their team demonstrated professionalism, and exceptional craftsmanship.

They maintained clear communication throughout the project, kept us informed of progress and any potential changes, and delivered everything on time and within budget. Their quality of work is outstanding — every detail was handled with care and precision.

What stood out most was their commitment to customer satisfaction. They were responsive to our questions, respectful of our space, and ensured that the final outcome matched our vision perfectly.

If you're looking for a reliable, skilled, and trustworthy construction contractor, I wholeheartedly recommend Quartz Construction ( Ohad and his team) .They exceeded our expectations in every way.

Ajay
  
 
      Posted on Google  
   
   debbie curley 
 
 
 
 Trustindex verifies that the original source of the review is Google. I had a fantastic experience working with Quartz Construction And Remodeling. Ohad Maloul the owner was professional communicative and a pleasure to work with from start to finish. His team repaired and painted my backyard pergola and the quality of their work was truly excellent. They were always on time, friendly and responsive to any questions I had throughout the process. I appreciated the clear communication and attention to detail. I’m excited to work with Ohad and his team on future projects and highly recommend them to anyone looking for reliable, high-quality construction or remodeling services.
  
 
      Posted on Google  
   
   Harry Lewis 
 
 
 
 Trustindex verifies that the original source of the review is Google. Hila managed our balcony addition project with care and precision. The design complements our home perfectly, and the build quality is outstanding. She communicated every step and made the whole process easy. We’re thrilled with the result!
  
 
      Posted on Google  
   
   Qi Lei 
 
 
 
 Trustindex verifies that the original source of the review is Google. I had the chance to work with Ohad and his construction team on a recent home project, and I was really impressed. Ohad is professional, easy to communicate with, and genuinely cares about the quality of the work. The crew showed up on time, kept the work area clean, and finished the job on schedule. It’s hard to find contractors who are reliable and transparent these days, but Ohad delivered on everything he promised. Would definitely recommend if you’re looking for someone who takes pride in their work and keeps things straightforward.
  
 
      Posted on Google  
   
   Boris Tyron 
 
 
 
 Trustindex verifies that the original source of the review is Google. We’re so happy with the work Quartz Construction did on our backyard. Ohad’s team designed and built a gorgeous deck and patio that turned the area into a dream space. The quality and detail are fantastic. Highly recommend!
  
 
      Posted on Google  
   
   Gloria Collin 
 
 
 
 Trustindex verifies that the original source of the review is Google. Quartz Construction built the most beautiful pergola in our backyard, thanks to Ohad. He was easy to work with, listened to our needs, and delivered a structure that’s both stylish and durable. We now have a shaded space where we can relax and entertain guests.
  
 
      Posted on Google  
   
   Dustin Walsh 
 
 
 
 Trustindex verifies that the original source of the review is Google. They built a beautiful, durable pergola that fits our outdoor space perfectly. Hila paid close attention to both style and quality. We now have the perfect spot for lounging, gatherings, and enjoying every season.
  
 
      Posted on Google  
   
   Paul Wilins 
 
 
 
 Trustindex verifies that the original source of the review is Google. We feel incredibly lucky to have worked with Hila. She made the ADU process simple and stress-free, handling everything with care and professionalism. The final space is perfect—efficient, elegant, and exactly what we hoped for. Big thanks to her and the whole crew!
  
 
  
  
 
     Verified by Trustindex  Trustindex verified badge is the Universal Symbol of Trust. Only the greatest companies can get the verified badge who has a review score above 4.5, based on customer reviews over the past 12 months. Read more

Get Your Free Estimate

Quartz Construction & Remodeling | CSLB #1003436 | Licensed, Bonded & Insured

Phone: (650) 749-7436

Address: 1777 Hamilton Ave #1080, San Jose, CA 95125

Hours: Mon–Sat 7am–7pm | Free Estimates

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How to Finance an ADU in San Jose 2025 — Best Loan Options and Programs

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