New Owner-Occupied ADU Loan Program
After attending the recent California Mortgage of Association (CMA) in Monterey, where we connected with industry leaders, top private money attorneys, and fellow hard money professionals, we identified an important new opportunity in the market.
Pacific Direct Mortgage is proud to introduce a new Business-Purpose Loan Program for qualified homeowners who wish to build or remodel an Accessory Dwelling Unit (ADU) on their primary residence.
These loans are structured as business-purpose financing, specifically designed for borrowers creating rental income opportunities. Please note: these are not consumer loans, they are business purpose loans.
What This Means for Our Investors
This program expands our reach to serve a growing group of homeowners who are building or remodeling ADUs to generate rental income from their existing property. Each loan will continue to meet the same equity-based lending standards that guide Pacific Direct’s private lending activities:
- Equity/Collateral position: Each loan is secured by the borrower’s primary residence against lendable equity.
- Documented business purpose: Borrowers are required to provide a dated and wet-signed statement confirming the loan’s business intent and anticipated income use.
- Verified project documentation: ADU plans, permits, and/or contractor bids are required before all funds are released.
- Protective fund holdback: When plans or permits are pending, funds can be held back until verification is complete.
Why It Matters
Demand for housing continues to rise across California, and ADUs have become one of the most practical ways for homeowners to generate additional business income. By maintaining our established private money lending criteria and equity-based private lending programs, Pacific Direct Mortgage is able to help serve this growing segment and provide more investment opportunities to you.
Program Summary
- Loan Type: Owner-Occupied ADU (Business Purpose).
- Use of Funds: Construction, addition, or renovation of an ADU intended to produce rental income.
- Structure: Equity-based and aligned with applicable California real estate and business-purpose lending regulations.
- Investor Benefit: Expands access to additional income generating loan opportunities, backed by real property collateral.
Closing Note
We’re excited to share this new lending avenue as we continue to focus on the core values that define Pacific Direct Mortgage: trust, transparency, and collateral strength.
Kep an eye out for our upcoming Trust Deed lending opportunities related to this ADU program!
Warm regards,
Ken Walker
Broker/Owner
Pacific Direct Mortgage & Real Estate, Inc
DRE #01858042 / NMLS #1221130
Phone: 707-708-0797
Office: 1400 N Dutton Ave #22 Santa Rosa, CA 9540
This communication is for informational purposes only and is not an offer to sell or a solicitation to buy any security. All investments carry risk, including potential loss of principal. Investors should conduct their own due diligence and consult with their advisors before making any investment decisions.
