Flexible ADU Financing.
We have financing solutions to build your dream ADU.
How ADU Financing Works.
ADU construction financing is one of the first questions homeowners ask before breaking ground, and for good reason. Building an ADU is a significant investment. The good news: there are strong options for most budgets and equity situations.
Many homeowners also wonder: “is it hard to finance a tiny home or ADU?” It depends on your equity and financial profile. If you want personalized options, don’t be afraid to reach out.
Your ADU Financing Options:
With the right tiny home financing option, your dream space is more attainable than ever!
Home Equity Line of Credit
A HELOC is the most popular financing options for ADU projects. It allows you to borrow against the equity in your home, with a draw period and a repayment period. You’ll only pay interest on what you borrow, making it a flexible and affordable solution.
ADU Bridge Loan
No Equity? No Problem! This loan allows you to borrow the money upfront to build your ADU. After the unit is built, you can pay off the loan with a cash-out refinance or HELOC based on the new value of your property.
Cash-Out Refinance
Unlock Your Equity – This option allows you to refinance your existing mortgage and use the equity to pay for your ADU. It’s a great option for homeowners with significant equity and favorable interest rates.
Construction Loan
For homeowners with less equity or those who prefer not to use their home as collateral, a renovation or construction loan may be the right fit. These loans have stricter requirements but offer a non-equity-based solution.
Alternative Options
Additional ADU financing options include personal loans, using retirement accounts, private money loans, or borrowing from family and friends. Our financing experts will help you explore all possible avenues to find the best solution for your needs.