What is a Prefabricated Granny Flat in Los Angeles?

Garage conversions on the hottest home improvement project out there right now in Los Angeles. Converting your existing attached or detached garage into a one bedroom or studio apartment granny flat is all the rage. But what happens if you don’t have a garage? What happens if your garage is in such bad shape that you’ll have to demolish it before building? Are you ready for the costs involved in such a huge project?

There is another way. What if, instead of building from the ground up, you decided to put a prefabricated home on your property? That’s right, a prefabricated home -- a home manufactured at a factory and installed on your property. Not only is it faster, but it’s also cheaper than traditional new construction.

What is a prefabricated granny flat in Los Angeles?

A prefabricated home is just that -- a home built at a factory and shipped to you. These are not mobile homes. These are homes that are built in modules, or pieces, at a factory. You pick out the design you want and it is shipped to your property. The home is then put together on your property and built on top of a foundation. 

While these kinds of homes are popular in rural areas, they are gaining popularity in the granny flat movement in Los Angeles and there are some great reasons for that. 

What are some benefits to installing a prefab granny flat in Los Angeles?

Prefab granny flats are a great way to save time and money. It can take up to 8 months and cost up to $120,000 to construct a granny flat from the ground up in traditional construction. And while you may be able to include more customization in this process, it does come with higher costs. 

In contrast, it costs about $70,000 to install a prefabricated granny flat on your property. With prefab granny flats, the homes are made off side and later assembled on site. In fact, your prefab can be constructed at the same time as your foundation is being poured, providing quicker construction time than traditional site builds. And because these homes are built off site, any unforeseen cost overruns can be better managed. 

When you decide to go with a prefab granny flat, about 90% of the home is already complete before it shows up on your doorstep. That means the walls, floors, ceilings and floors are finished before it is shipped out. Once the unit arrives, the electrical and plumbing are hooked up. Installation can happen in as little as 3 days.

Another time saver is the inspection process. With traditional construction, a city inspector has to take a look at the job through every step of the process to make sure the work is up to code. With prefab homes, the state does all the approvals and inspections of the home in the factory. . 

Remember, though, that the process still includes planning, permitting and site preparation. Those things can take a few months, but overall, the building process is much faster when you choose a prefab granny flat. 

Can I customize my prefab granny flat in Los Angeles?

You may be thinking that prefab homes are cookie cutter, but they don’t have to be. With modular homes, you pick out the pieces you want to go together, mixing and matching designs to create the look you want.

When choosing a prefab granny flat, there are a few construction options to choose from.

• Modular home: WIth a modular home, the house is constructed off site in separate box-like modules that are then secured together and anchored to the foundation. Since modules are transported on trucks, they tend to be no longer than 16 feet.That means every room in the house is typically less than 16 feet wide.

• Panel built: With a panel built home, all the structural components (walls, floor, ceilings) are built off-site and then put together on the site, similar to traditional build. This type of home can sometimes be less expensive to transport to your site than a modular home.

• Kit Home: With a kit home, all of the components and materials needed for building the home are shipped to the site and assembled. 

Another great plus with prefab granny flats is that they tend to be more energy efficient, with tighter seals and highly rated windows. You can get a tighter building envelope with fewer leaks. This is something to consider when constructing a granny flat. Why? Most homeowners decide not to separate their utilities when constructing a granny flat because the cost is very high. If you install a prefab granny flat that is more energy efficient, you will be saving money on your utilities. 

How can I pay for my prefab granny flat in Los Angeles?

While the price of a prefab granny flat is substantially less than traditional construction, it may still seem out of reach for many homeowners. But there are funding solutions.

If you have equity in your home, you qualify for a Home Equity Line of Credit.  You can usually borrow up to 85% of the value of your home, minus the amount that you owe. For example, if your home is worth $500,000 and you owe $350,000, most banks will lend up to 80% of the current value, or $400,000. That would leave you with $50,000 for your ADU.

Another alternative is a renovation loan, or a construction loan. Renovation loan appraisals are based on the value of the home once the construction is completed. Say your home will be worth $550,000 once the ADU is complete. The renovation loan will lend up to 95% of the new value, or $522,000. That leaves you with $172,500 to build your ADU.

If you are looking for more information on how to finance your ADU, give us a call. Our lending experts will work with you to find the perfect solution to your lending needs. Call Granny Flats Design at 818-532-0482.