How To Finance Your ADU With A "HECM" Reverse Mortgage.

Real Estate Broker/Owner with CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments 521400, 1501015, 01795582

How To Finance Your ADU With A "HECM" Reverse Mortgage


We speak with senior homeowners everyday who would love to add a 'BACKYARD HOME' to their property but just don't have the money to do it and don't want to dig into their savings or retirement. However, they may have enough equity in their home. 



Starting in July we will be posting a 11 part webinar series digging into all aspects of using the very earth you own beneath your feet by adding an Accessory Dwelling Unit (ADU) to your property without having to take any money out of your savings or retirement. 


If you are over 62 years old and own your own your home and you've been thinking about adding a 'BACKYARD HOME' to your property but just don't have the $$$ on hand please add your name and contact info to our interest list. 


You may be standing on an additional revenue stream that could add value to your property and give you years of financial comfort. You can convert a room in your existing home to a Junior Accessory Dwelling Unit (JADU) with a few simple modifications and additions. 

  • Add an exterior door
  • Add a kitchenette
  • Add or share a bathroom

Now you've got an additional dwelling that could generate you additional monthly income or provide a comfortable living space for a loved one.


Additionally, under the recently enacted California State ADU Mandate you can also install up to a 1200sf 'BACKYARD HOME' on your property. Our 10 part webinar series will explain in detail how you can use the "HECM" Reverse Mortgage to pay for all of this if you have the equity in your home.


Each segment is only 20 minutes with a Q/A period at the end and you can watch it over and over again. Or just email or call us for a free one on one consultation.


Reserve your spot now by adding your contact information in the comment section below. Or email us at  We will contact you with links to our complete schedule. Check out the things you will learn.


  1. A Seniors Guide to Building a Modular ADU
  3. Where to put it 
  4. Handling the Red Tape 
  5. Where to Put the Utilities
  6. Plot Plan & Map Work - Determining Location & Orientation 
  7. Creating the Install Plan 
  8. Go Time with the City
  9. Choosing Your Crest 'Backyard' Home - The Fun part!
  10. Finishing Touches - Making it a Home
  11. How to Pay For it All (and still make money!) 


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Why To Choose Us?

John DL Arendsen, Broker, General & Manufactured Home Contractor and Dealer 

TAG Real Estate Sales & Investments

TAG (The Arendsen Group) Real Estate Sales & Investments is a full service, one-stop, turnkey, family owned and operated real estate brokerage, General Contractor, Manufactured Home Contractor, Developer, Investor, Property Manager, Interior Design, Engineering, architectural, Landscape design, Expert Witness, Consulting, Curative Title and Troubleshooting company with over 100 years of combined experience in the San Diego real estate sales, construction, design & development arena.





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Comments (6)

Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Hello John - I'd love to be "in the know" with your upcoming series. I'm a huge fan of ADUs in San Francisco and the Silicon Valley, work with many seniors and others who could benefit from your knowledge.  

Jul 08, 2020 02:06 PM
John DL Arendsen

Although we don't personally provide construction and manufactured home delivery services outside of San Diego we do work with other contractors that are in your area Lottie Kendall 

My team mate, Jeremy Knock, owns Golden Age Financial Services and can provide a HECM loan anywhere in Cali. 

Jul 09, 2020 08:15 AM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Great info and opportunity.

I referred you to a listing of mine in Mount Helix, but they are hesitant to spend the Feasibility fee just to advertise "ADU lot" but I'm working on it.

Jul 08, 2020 09:43 PM
John DL Arendsen

One way or another there will be upfront fees that the homeowner will have to pay Thomas J. Nelson, Realtor e-Pro, CRS, RCS-D, Vets .

The site evaluation will give the homeowner a plot plan and cost study they can use for pulling the permit so there is some value added for the $1000 fee. Plus if the homeowner decides to contract with us for the project we deduct that fee from the total. 

They are going to have to pay for several up front fees in order to get to the permit counter. At least this is giving them something for their money.

Jul 09, 2020 08:04 AM
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

This is good information about financing and ADU with a reverse mortgage, John!

Jul 09, 2020 04:44 AM
John DL Arendsen

Thanks Myrl Jeffcoat I will keep you in the loop. There's no cost for our webinar series and as long as you're in Cali you're clients are eligible for this program. 

We also have financing available for folks that are too young to qualify for the HECM loan. There's not many banks out there that will lend for a manufactured ADU on a property with a site built primary residence. I think we have about the only one that will as far as I know.

Jul 09, 2020 08:08 AM
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Sounds like an innovative idea. Financing can be a stumbling block. The ADU concept is here to stay - and it's a good one. Hopefully, we'll keep seeing progress on all fronts. 

Jul 11, 2020 07:01 AM
John DL Arendsen
CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA
Crest Backyard Homes "ADU" dealer & RE Developer

ADU's are here to stay for sure Debb Janes EcoBroker and Bernie Stea JD. Seniors on limited or low income and with minimal retirement options can use the equity in their home to add one to their property and open up an addional revenue stream without any front end cash outlay. It doesn't get much better than that.

Jul 12, 2020 07:58 AM
Fred Sweezer Sr. CMI, LLC.
Hud Certified 203K Consultant - Long Beach, CA
Certified Home Inspector

Thanks for sharing!

Apr 17, 2021 11:20 PM