Financing

Smart Ways to Finance Your ADU

An ADU is a major investment — but rarely an all-cash one. Compare HELOCs, renovation and construction loans, cash-out refinances, and California grant programs to find the mix that fits your equity, your budget, and your rental upside.

Explore Financing OptionsSee Lenders

A 1-bedroom ADU in California typically runs $150K to $200K all-in; a 2-bedroom around $250K to $335K. The good news: you usually do not need that in cash. The right financing turns your home equity and future rent into a buildable budget.

How it works

A simple path from idea to a build-ready ADU.

1
Estimate your budget
Use your design's size to ground a realistic all-in cost.
2
Review your options
Compare HELOCs, renovation and construction loans, refinances, and grants.
3
Get matched to lenders
Connect with lenders who finance ADUs in California.
4
Fund and build
Line up financing with your builder's draw schedule.

What you get

HELOC & home equity
Tap existing equity — often the fastest and lowest-friction option.
Renovation & construction loans
Borrow against the finished value, including the new ADU.
Cash-out refinance
Restructure your mortgage to pull out build funds.
Grant programs
See whether California grant programs can offset your costs.
Rental income upside
Factor projected rent into what the project can support.
Lender matching
Connect with ADU-friendly lenders in our network.

Match the loan to the project

Different financing tools fit different situations. Equity-rich owners often lean on a HELOC; owners building against future value may prefer a renovation or construction loan that underwrites the finished, higher-value property.

Knowing your ADU's size and cost — straight from your design — makes these conversations concrete instead of hypothetical.

Let the rent do some of the work

A California ADU commonly rents for $1,800 to $3,500 per month. Check local demand on our rental market tool, then weigh that income against your monthly payment to see how quickly the unit pays for itself.

Frequently asked questions

How much does an ADU cost to build?
In California, a 1-bedroom ADU typically runs $150K to $200K all-in and a 2-bedroom around $250K to $335K, depending on size, site, and finishes.
Can I build an ADU without paying all cash?
Yes. Most owners use a HELOC, renovation or construction loan, or cash-out refinance, sometimes combined with grant programs.
Are there grants for building an ADU in California?
California has run grant programs such as the CalHFA ADU grant. Availability changes over time, so we help you check current options.
How does rental income affect financing?
Projected rent improves the economics and, with some loan types, can factor into qualifying. Our rental market tool helps you estimate realistic local rents.

Explore the rest of the platform

Everything you need to plan, design, and build your ADU — start to finish.

Find your ADU financing path

Explore your options and get matched with lenders who finance accessory dwelling units in California.

Explore Financing Options