HELOC for ADU Financing in California
Use a Home Equity Line of Credit to Build Your ADU — With Maximum Flexibility
Want to build an ADU without touching your first mortgage? A HELOC (Home Equity Line of Credit) gives California homeowners a flexible, interest-only way to fund their ADU — with no refinance and no large upfront payments.
It’s a smart way to access your equity on your terms.
What Is a HELOC?
A HELOC is a revolving credit line that allows you to borrow against the equity in your home, similar to a credit card — but with far lower rates and higher limits.
You can:
Draw funds as needed (pay-as-you-go)
Only pay interest on the amount you use
Reuse it again later, if approved
Perfect for phased ADU construction, unpredictable timelines, or when you want lower payments during the build.
Why Choose a HELOC for Your ADU?
Here’s why homeowners in California love using HELOCs for their ADU:
No need to refinance your 1st mortgage
Draw only what you need, when you need it
Interest-only payments during the draw period
Re-use your line of credit for other projects
W-2, self-employed, and asset-based borrowers welcome
HELOCs are all about control and flexibility — especially if your ADU build is staged.
Who Qualifies for a HELOC?
HELOCs are widely accessible. You’ll typically need:
Property in California (SFR or up to 4 units)
At least 15–20% home equity
Credit score of 660+
Verifiable income (W-2, bank statements, or assets)
Not sure what applies to you?
Check Your ADU HELOC Eligibility →
How Much Can I Borrow?
Your HELOC limit depends on:
Home value
Mortgage balance
Credit and income
Many ADU homeowners get $50,000–$250,000+, with interest-only payments during the draw phase and flexible repayment afterward.
Real Examples of ADU HELOC Use
Santa Ana Homeowner
Opened a $180K HELOC to pay contractors in stages — interest-only payments during build. Funded in 7 days.
San Diego Duplex Owner
Used a $95K HELOC to start garage conversion with plans to draw more as needed.
How It Works
Funding your ADU with a HELOC is quick and mobile-friendly:
Apply online — soft credit pull only
Verify property value + income
Open your credit line
Draw funds as needed during the ADU project
Make interest-only payments during the draw period
Everything is digital, and we serve homeowners across all of California.
Is a HELOC Right for You?
If you want flexibility, control, or plan to build in phases — a HELOC is likely your best option.
Compare with:
We’ll help you choose the best fit for your ADU and lifestyle.
FAQs: HELOC for ADU Financing
Q: Will a HELOC affect my first mortgage?
No — it’s a separate line of credit and does not change your existing loan.
Q: Can I use it in stages?
Yes — draw only what you need and keep the rest unused until later.
Q: What if I’m self-employed or recently retired?
We offer Bank Statement, Asset-Based, and Stated Income HELOCs — flexible documentation accepted.
Ready to Unlock Your Equity?
A HELOC is one of the easiest ways to fund your ADU — without committing to a lump sum upfront or touching your low-rate mortgage.
Click below to see what you qualify for: