There are multiple ways to finance your ADU—and the best choice depends on your current mortgage, available equity, long-term goals, and financial comfort. The table below outlines the most common financing methods, so you can compare them side by side and find the right fit for your situation.
Whether you’re looking to preserve your current mortgage rate, tap into your home’s equity, or roll everything into a new loan, there’s a solution designed to help you build smarter.
| Financing Option | Replaces Current Interest Rate? | Uses Post Construction Value | Rate Comparison | Who Pays Contractor? |
|---|---|---|---|---|
| Construction Loan | Yes | Yes | Base Mortgage Rate | Bank |
| Cash Out Refinance | Yes | Yes | Base Mortgage Rate | Client |
| HELOC | No | No | Base + 1–3% | Client |
| Renovation HELOC | No | Yes | Base + 1–3% | Client |
| Home Equity Loan | No | No | Base + 1–3% | Client |
| Cash | No | n/a | n/a | Client |
| Purchase + Renovation | n/a | Yes | Base Mortgage Rate | Bank |
There are multiple ways to finance your ADU—and the best choice depends on your current mortgage, available equity, long-term goals, and financial comfort. The table below outlines the most common financing methods, so you can compare them side by side and find the right fit for your situation.
Whether you’re looking to preserve your current mortgage rate, tap into your home’s equity, or roll everything into a new loan, there’s a solution designed to help you build smarter.
STREAMHOME CONSTRUCTION PREFERRED LENDERS
Integrity Bank & Trust offers construction loans and is represented by Ashley Lawrence. For inquiries, Ashley can be reached at 719-955-4809 or via email at alawrence@integritybankandtrust.com.
719 Lending provides cash-out refinance loans as well as purchase and renovation financing. Ryan Jahnke is the point of contact for this institution. He can be contacted at 719-210-5517 or by email at rjahnke@719lending.com.
ENT Credit Union specializes in cash-out refinance loans and HELOCs (Home Equity Lines of Credit). Their team can be reached at 719-574-1100. Additional information is available on their website: https://www.ent.com/.
LoanStar Technologies focuses on Renovation HELOCs and is represented by Charles Edington. You can reach Charles at 801-819-3125. More details are available on their website: https://www.adufinanceguy.com/.
