Home Equity Loans
Summary: Home equity loans allow you to borrow against the equity in your primary residence to fund your ADU project.
Key points:
- Easy to qualify for
- Variable interest rates
- Repayment terms vary
Construction Loans
Summary: Construction loans are specifically designed for building projects and can provide funding for your ADU.
Key points:
- Flexible repayment terms
- Fixed interest rates
- May require a construction loan officer
Cash-Out Refinancing
Summary: Cash-out refinancing allows you to refinance your primary residence and take out additional funds for your ADU project.
Key points:
- Can provide significant funding
- Interest rates are typically higher than home equity loans
- May require a higher down payment
Grants and Incentives
Summary: Grants and tax incentives can provide funding and reduce costs for your ADU project.
Key points:
- Check for local and state grants
- Explore tax incentives for ADU projects
- Grants may be available for sustainable features and energy-efficient upgrades
Payment Plans
Summary: Payment plans can help you manage the cost of your ADU project over time.
Key points:
- Choose a plan that fits your budget
- Consider interest rates and fees
- Evaluate long-term costs and benefits