how to finance an adu: Many options available from TurnKey ADU
Home Equity Loans & HELOCs
One of the most common ADU financing methods is a Home Equity Loan. For those who own their home outright, it makes sense to leverage the value of the home against improvements to be made on the property, since those improvements will ultimately increase the overall value of the home. A Home Equity Loan is a particularly smart choice if you plan to rent out your ADU.
There are two different variants of Home Equity financing – a classic Home Equity Loan, which provides a fixed amount of cash and a fixed repayment schedule, and a HELOC (Home Equity Line of Credit), which is structured as a revolving line of credit and has shorter repayment terms. Both options are perfectly well-suited to financing an ADU, but one may make more sense for your specific situation. Be sure to evaluate your project timeline and consider how the cash outlay will impact you before choosing which method to use.
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Turnkey ADU Living are an expert accessory dwelling unit (ADU) partner. Our specialty is in delivering pre-fabricated units of the highest quality, at a fraction of the cost of custom built units. Our team of experienced realtor’s, designers, home builders, architects and engineers are committed to supporting you with your project, ensuring a solid return on any investments.