Veteran-Owned
Licensed NC Contractor
ADU Financing Options
Understanding your options is the first step. We'll help you navigate the rest.
How Homeowners Pay for ADUs
Most ADU projects are funded through existing home equity. We don't offer in-house financing, but we work closely with homeowners and their lenders to make the process straightforward. Here are the most common options our clients use.
Home Equity Line of Credit (HELOC)
Borrow against your home's equity with a flexible credit line. Draw funds as needed during construction and pay interest only on what you use.
Best for: Homeowners with significant equity who want payment flexibility.
Home Equity Loan
A lump-sum loan secured by your home's equity with a fixed interest rate and predictable monthly payments.
Best for: Homeowners who prefer a fixed payment schedule and locked-in rate.
Cash or Savings
Pay for your project directly from savings or liquid assets. No interest, no monthly payments, no lender involvement.
Best for: Homeowners who want to avoid debt and have available funds.
Construction Loan
A short-term loan designed specifically for building projects. Funds are disbursed in stages as construction progresses.
Best for: Homeowners building larger ADUs who need phased funding.
What Does an ADU Actually Cost?
Starting price
Typical projects range from $69,000 to $230,000+ depending on size, design, and finishes.
A 300 sqft studio starts around $69,000. A 1,000 sqft two-bedroom can reach $230,000 or more. Every project is different — your site evaluation will give you a realistic budget range.
All pricing is approximate and varies based on site conditions, design choices, materials, and local requirements.
How We Support the Financing Process
Clear Cost Estimates
We provide detailed project estimates so you and your lender know what to plan for.
Lender Coordination
We're happy to speak directly with your bank or credit union to answer construction-related questions.
Phased Payment Structure
Our payment schedule aligns with construction milestones, so you're only paying for work that's completed.
Financing Questions
Do you offer payment plans?
We don’t offer in-house financing, but our payment structure is tied to construction milestones. You’ll make payments as phases are completed — not all upfront. We’re also happy to work with your lender to provide the documentation they need.
Can I use a VA loan for an ADU?
VA loans are typically for primary residences and may not cover a standalone ADU directly. However, if you’re refinancing your primary home and using the equity to fund the ADU, VA loan options may apply. We recommend speaking with a VA-approved lender to explore your specific situation.
When do I need to pay?
Payments are structured around construction milestones. A typical schedule includes a deposit at contract signing, then payments at foundation completion, framing, rough-in, and final walkthrough. This means you’re only paying for completed work, and your lender can disburse funds accordingly.
How do I know if I have enough equity?
Most lenders allow you to borrow up to 80–85% of your home’s current value minus your remaining mortgage balance. Your bank or credit union can give you a quick equity estimate. During our consultation, we can also help you understand what project size your equity may support.
Let's Talk About Your Project Budget
A free consultation helps us understand your goals and give you a realistic picture of costs.
Schedule Your Free Consultation