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Financing

Compare HELOCs, construction loans, cash-out refis, and 203(k) rehab loans for your ADU — with real rates, terms, and qualification tips.

Financing is the part of the ADU process where most homeowners get stuck. Banks treat ADUs differently than primary-home renovations, equity products have very different costs, and the rental-income rules from Fannie Mae and Freddie Mac change which loan paths actually qualify you. Our financing guides compare the real options — HELOC, home equity loan, cash-out refinance, construction-to-permanent loan, renovation loans like RenoFi, FHA 203(k), and equity-sharing products like Hometap — on the dimensions that matter: rate range, payment structure, qualification rules, how rental income from the ADU is treated, and what happens if your build runs over budget. Every guide is sourced from the lender's current rate sheet or the agency's published Selling Guide, not third-party summaries.

What you'll find in Financing

  • Side-by-side comparisons of HELOC, cash-out refi, construction loans, RenoFi, and equity-sharing options
  • Fannie Mae and Freddie Mac ADU rules — including rental-income caps and number-of-ADUs-per-property limits
  • How to finance an ADU when you have little or no equity
  • Decision frameworks: when a HELOC beats a construction loan and when it doesn't
  • Worked income examples and qualification thresholds at current rates

All Financing guides