Is An ADU Right For You?
Most homeowners qualify to finance an ADU several financing options are available. One popular option is refinancing your current loan and pulling out equity to finance your ADU. ADU budgets can start out at $80,000 but most will range in $200,000 to $300,000.
Not all homeowners will have sufficient equity for an ADU, then you can consider renovation loans from HUD & Fannie Mae. The key advantage is these loans are based on the future value of the property. Anytime a renovation adds square footage, it’s highly valued and appraised.
Other loans are also available that can be considered: constructions loans, jumbo loans & hard money loans.