Financing your ADU
Most homeowners finance at least part of their ADU. Here's a quick way to estimate the monthly payment, and the common ways people pay for one.
Rule of thumb: about $650 a month for every $100,000 borrowed. Rates change daily, and your lender sets your actual rate and payment.
Common ways to pay for an ADU
Home equity line of credit (HELOC)
Borrow against the equity in your home and draw funds as construction progresses.
Cash-out refinance
Replace your mortgage with a larger one and use the difference. Makes the most sense when current rates compare well with your existing loan.
Renovation or construction loan
Some loans are based on your home's value after the ADU is built, which can let you borrow more than your current equity.
Savings or cash
Paying in cash avoids interest. Some owners combine savings with a smaller loan.
We're happy to share lenders our clients have worked with. Rental income from an ADU can help cover the payment.
Ready to see what fits your lot?
Book a free site visit. We’ll check what your property allows and give you a full estimate, including plans, permits and utility connections.