How to Finance an ADU: 5 ADU Loan Options

How to Finance an ADU: 5 ADU Loan Options

KEY TAKEAWAYS

  • ADUs offer a flexible housing solution, serving various purposes, such as accommodating family members, generating rental income, or creating a home office.
  • Building an ADU can provide additional income through rental opportunities and enhance property value while offering flexibility for homeowners’ changing needs.
  • There are many ADU financing options to choose from, including cash-out refinancing, home equity loans, home equity lines of credit, DSCR loans, and construction loans.
A small modern style accessory dwelling unit is situated in a backyard that’s rich with trees and potted plants and flowers.
Written by Bill Lyons