FINANCING
How do I finance
my ADU project?
There is no single right answer — it depends on your equity, your credit and the kind of ADU you're building. Here are the routes our clients use most, and the lender partners who know prefabricated construction inside out.
YOUR OPTIONS
Eight ways to fund
a backyard home.
01
Personal funds
The simplest route. No lender, no interest, no approval process.
02
Cash-out refinance
Refinance the existing mortgage on your primary residence and take the equity out as cash.
03
Home equity line of credit
A HELOC secured against your primary residence, drawn down as the project needs it.
04
Construction or remodeling loan
Built for projects like this — funds release in stages as the work progresses.
05
Home renovation loan
Renovation financing that treats the ADU as an improvement to your property.
06
Reverse mortgage
For qualifying homeowners, a way to release equity without a monthly payment.
07
Private or "hard money" lender
Faster and more flexible than a bank, at a higher cost of borrowing.
08
Park Model RV lenders
Park Model RVs have their own specialist lenders, closer to financing a vehicle than a house.
LENDER PARTNERS
People who already
understand prefab.
MyADU4Less works with several lender partners to help our clients fund their ADU project. You are never required to use one of them — but they are very familiar with prefabricated construction, which tends to make everything move faster.
CASH-OUT REFINANCE · HOME EQUITY
Supreme Lending
Rick Kesseler · NMLS #188061
CASH-OUT · HOME EQUITY · CONSTRUCTION
IFC Mortgage
David Church
- (760) 943-6777
- davidc@ifcmortgage.com
- 326 Encinitas Blvd, Ste 200, Encinitas, CA 92024
REVERSE MORTGAGES
Pacifica Mortgage & Real Estate
Peter Clayton · NMLS #352051 · CBRE #01242599
Lender partner details are provided for your convenience and may change. MyADU4Less does not provide financial advice — please confirm terms directly with the lender.
NEXT STEP
Know the number
before you borrow.
Start with a free site assessment. We'll confirm an ADU fits your property and prepare a real budget, so you can talk to a lender with actual figures in hand.
Get a Free Site Assessment →or call (951) 679-9907 ext 1
MyADU4Less
Full-service design & build firm for prefabricated ADUs (Granny Flats) throughout Southern California.