Smart Financing for Your ADU Investment
Explore flexible financing options to make your ADU dream a reality. We'll help you find the best solution for your budget and goals.
Why ADUs Are a Smart Investment
Turn your property into a powerful income-generating asset with proven financial returns
Your Investment Journey
See how your ADU investment pays for itself through consistent rental income and property value appreciation.
Based on average market rates
Average equity increase upon completion
Full investment recovery through rental income alone
Tax Benefits
Deduct mortgage interest, property taxes, insurance, maintenance, and depreciation from your rental income.
Flexible Living
House aging parents, adult children, or guests while maintaining privacy and independence for everyone.
Future-Proof Asset
ADUs remain in high demand as housing shortages continue. Your investment grows more valuable over time.
Typical Financing Qualifications
Most lenders will require the following to approve your ADU financing
Financing Options for Your ADU
Choose from 8 proven financing solutions tailored to your financial situation
Home Equity Loan
Borrow against your home's equity with fixed rates and predictable monthly payments.
Home Equity Line of Credit (HELOC)
Flexible credit line that lets you borrow as needed during construction.
Cash-Out Refinance
Refinance your mortgage for more than you owe and use the difference for your ADU.
Construction Loan
Short-term loan specifically designed for building projects like ADUs.
Fixed Rate Second Position Loan
Keep your existing low mortgage rate while accessing funds based on your home's after-renovation value. Ideal for those who want to preserve their current loan terms.
FHA 203(k) Renovation Loan
Government-backed loan that combines purchase or refinance with renovation costs. Lower down payment requirements and competitive rates.
Fannie Mae HomeStyle Renovation
Conventional loan that finances both purchase and renovation. More flexible than FHA with higher loan limits and fewer restrictions.
Personal Loan
Unsecured loan option for smaller ADU projects or finishing touches. No collateral required but typically higher interest rates and shorter terms.
Not sure which option is right for you?
Schedule a free consultation to discuss your financing options
ADU Financing Calculator
Calculate your monthly payments and ROI
Total Estimated Cost
Financing Details
Rental Income Potential
Disclaimer: These calculations are estimates for informational purposes only. Actual costs, interest rates, and rental income may vary. Consult with a financial advisor for personalized advice.
Ready to Start Your ADU Project?
Schedule a free consultation to discuss your financing options and get a personalized quote for your ADU project.