SAN JOSE, Calif.–Meriwest Credit Union has launched a new program to finance auxiliary dwelling units (ADUs), which have become popular in California as a means of addressing a housing shortage.
The $2.1-billion Meriwest said its HomeFast ADU Loan program is now available to homeowners’ considering building or buying an ADU, which allows for better utilization of residential land to expand livable space for personal or rental use.
“Recent changes to California zoning regulations along with cities and counties expediting ADU permits, has caused ADU development demand to spike,” the credit union said.
“We designed this product based on listening to our community. Our Meriwest HomeFast ADU Loan is about empowering our members to make the most of their properties,” EVP/COO Chad Maze said in a statement. “Whether it’s creating a rental unit to generate extra income, housing loved ones, or adding functional space, this loan makes ADU projects achievable when our community needs them the most.”
The Features
Features of the Meriwest HomeFast ADU Loan include:
- Loan Amounts: $25,000 to $500,000 or more, accommodating everything from modest backyard cottages to fully equipped secondary units.
- Term: 25 years, with interest-only payments for the first 12 months to ease the financial burden during construction.
- Introductory Rate: 5.99% APR for the first 12 months, providing significant savings during the initial phase of the project.
