Financing

Financing your project.

We work with lenders who understand modular construction, ADUs, and SB 1211 economics. Here's a starting point.

Modular vs. prefab financing: modular qualifies for the same mortgages as site-built. Manufactured (HUD-code) qualifies too — but only after HCD Form 433A conversion to real property.
Read the comparison
Common financing paths

By audience.

For homeowners

HELOC

Home equity line of credit. Most common for owner-occupied ADUs with existing equity.

Cash-out refinance

Lock in a lower rate while pulling out equity for the build.

ADU-specific loans

Some CA lenders offer ADU-specific products. Varies by region.

Renovation loans

FHA 203(k), Fannie Mae HomeStyle for purchase + ADU build combined.

For multifamily owners (SB 1211)

Cash-out refi on existing property

Use built-up equity in your existing fourplex to fund the new ADUs.

Construction-to-perm loans

Single closing, draw schedule during build, converts to permanent debt at C of O.

DSCR loans on the new income

Underwritten on the projected rents from the new ADUs. Especially useful at scale.

For developers and agencies

Construction loans

Standard developer paper from banks that have done CA modular before.

LIHTC, HOME, bond financing

For affordable projects. We've worked with HCD, CalHFA, and several CDFIs.

Bridge financing

For phased deployments where you want to start the next phase before lease-up is complete.

Our lender network

Warm introductions, not random referrals.

We don't publish our lender list — we don't want to look like we're endorsing them. But we'll make warm introductions to lenders we've actually closed projects with, sized to your project type and region.

Ask for a lender introduction

Tax considerations

If your Clever unit will generate income (rental, STR, ag-worker housing), accelerated depreciation may apply. Factory-built and modular structures have specific depreciation classifications that often work in your favor.

Talk to your CPA. We're happy to share how factory-built structures are classified.

Disclaimer: Clever Builds does not provide financing, financial advice, or legal advice. We can introduce you to lenders and resources in our network. All financing decisions are between you and your chosen lender.

Need a lender intro?

Tell us your project, your equity position, and your timeline. We'll match you with two or three lenders who close on projects like yours.