HELOC
Home equity line of credit. Up to 80–90% LTV. Flexible draws, interest only on what you use.
Best if you have equity
ADUs · Know About Them
An ADU is an investment, the financing side has to be as solid as the design. We're building a vetted lender network right now. In the meantime, this page walks you through the loan types that fit ADU projects and the math behind each one.
Explore Financing ↓Each loan fits a different situation. The right one for you depends on equity, credit, the property's status, and whether you want a single closing or a draw schedule.
Home equity line of credit. Up to 80–90% LTV. Flexible draws, interest only on what you use.
Best if you have equitySecond-position loan. No refi of your existing mortgage. 20-year terms, full upfront funding, based on after-renovation value.
Locks today's rateInterest-only during build. Rolls into a mortgage when the unit is complete. Good for low-equity homeowners.
Low-equity friendlyFHA 203(k) or Fannie HomeStyle. Up to 95% LTV for primary residences. Based on future appraised value, not today's.
Highest leverageRefinance your existing mortgage and pull cash out. Replaces your current rate, check whether that's a gain or loss.
Watch the rate trade-offAges 62+. Up to 42–70% of equity depending on age. No fund-use controls. Good for retirement-stage homeowners.
Ages 62+ onlyFor investment properties. 80% LTC. 12-month + 3-month extension terms. Double-digit rates, expensive, but fast.
Investors onlyTwo views of the same project: how the monthly numbers stack, and how the financed cost looks against the property-value lift.
Illustrative only. A 1 BR ADU financed at $350K (7.25%, 30 yr) earns rent that more than covers the payment from month one in most SD zip codes. Taxes, insurance, and maintenance not shown.
In supply-constrained San Diego, ADUs typically appraise at 1.4–1.6× their build cost. That delta is equity in your name the day construction ends, before counting a single dollar of rent.
Anyone can post a list of bank logos. We'd rather work with a small set of lenders who actually understand ADU underwriting, including the future-rent qualification rules that came online in 2023.
Every partner closes ADU-specific loans regularly. Generic mortgage brokers don't make the cut.
Partners qualify borrowers on up to 75% of projected ADU rental income (FHA / Fannie Mae rules from Oct 2023).
Lenders who know SD County values, neighborhood comps, and the local ADU appraisal landscape.
We don't take referral fees. The intro is warm but neutral, you're not being routed to whoever pays us most.
If you write ADU-friendly loans in San Diego County and want to be considered for our partner list, fill this out. We read every submission personally and reply within ~1 week.