ADU Financing
There Are More Options Than You May Think

Financing
Your ADU

As you get closer to building, one of the biggest questions is how to pay for it. The good news: there are several strong options — and we help you understand which fits best.

Get a Free Feasibility Check →
Financing Options

The Main Paths to Funding Your ADU

Here are the most common financing options available. If you want to quickly find the best fit and understand what payments would look like, start with a free feasibility check — we connect you with lenders experienced in ADU financing.

01
Home Equity Line of Credit (HELOC)

The most common path our clients use. A HELOC is a line of credit based on the equity you’ve built, divided into a draw period and a payback period. You’re only charged interest on what you actually use, and you can draw funds over time — typically a 10-year draw window.

This is secondary to your existing mortgage, and payments stay manageable if you draw incrementally as construction progresses.

02
Cash-Out Refinance

Similar to a HELOC in that it’s based on your home equity — but instead of a secondary line of credit, a cash-out refinance replaces your current mortgage entirely. You receive the difference in cash to fund your ADU project.

This works well if you have substantial equity and your current interest rate is similar to or higher than today’s rates. Worth evaluating if rates have moved in your favor.

03
Renovation or Construction Loan

Unlike equity-based options, renovation and construction loans don’t use your home as collateral — making them a good fit if you have limited equity or prefer not to leverage your property. These loans are converted to a standard mortgage once construction is complete.

They typically carry stricter credit and income requirements and slightly higher interest rates, but they’re a strong option for the right situation.

04
ADU Calculator

Not sure what monthly payments might look like? Use our ADU payment calculator to model project cost, down payment, interest rate, and loan term — and see an estimated monthly payment before you talk to a lender.

Open the ADU Calculator →

Alternative Options

Beyond Traditional Loans

There are more paths than most people realize — including dozens of lenders with different terms. Here are other options worth exploring:

  • Personal loan or personal line of credit
  • Retirement account funds (consult your advisor)
  • Proceeds from sale of another property
  • Borrowing from family or friends
  • Private money loans
  • ADU-specific lending programs

We work with lenders experienced in ADU financing and can make introductions. We’re not a lender, but we know who to call.

Understanding ADU Costs

What Goes Into the Price

We believe in transparency. Here’s how ADU project costs break down:

Construction & Finishes
Framing, insulation, siding, roofing, flooring, cabinetry, bathrooms, and all interior finishes. The largest cost category.
Foundation & Utilities
Excavation, foundation, and connection of water, sewer, and electrical to the ADU. Site-specific — varies by lot.
Site Prep & Landscaping
Driveway work, grading, walkways, and restoring disturbed areas after construction.
Design, Planning & Permits
Architectural plans, design coordination, permit applications, and municipal review. Included in our base price.

See full pricing context: Understanding ADU Pricing →

Ready to See What You Qualify For?

Start with a free feasibility check.

We review your property, confirm what’s buildable, and connect you with ADU-experienced lenders who can walk through payment options with you.

Get a Free Feasibility Check →