Equity Based Loans for ADU Financing in California
Build Your ADU Using the Equity You Already Own — No Income Needed
Have home equity but can’t prove income on paper? Whether you’re retired, between jobs, or just not ready to share financials, an Equity-Based Loan could help you fund your ADU fast — using your property value, not your pay stubs.
These loans are designed for California homeowners who are asset-rich, income-light — and ready to turn their backyard into something valuable.
What Is an Equity-Based Loan?
An equity-based loan allows you to qualify based solely or primarily on your home’s equity, not your job, bank statements, or tax returns.
Lenders look at:
Your property’s current value
Your first mortgage balance
The amount of available equity you can tap
If the equity is there — you can get approved. Fast.
Why Use an Equity-Based Loan for Your ADU?
This is the simplest way to unlock value from your home, without jumping through traditional hoops.
No income verification required
Low documentation — just ID, property info, and credit
No tax returns, W-2s, or bank statements
Funding in as little as 5 days
Keep your first mortgage intact
Perfect for:
Retirees
Property investors
Recently unemployed
Anyone who’s “house rich, paper poor”
Who Qualifies?
You may be eligible if you:
Own property in California (SFR, duplex, triplex, fourplex)
Have at least 30–40% equity in your home
Have good credit (typically 640+)
Want to fund an ADU without proving income
This is the most flexible loan type we offer.
Not sure if you qualify?
Check Your ADU Options →
How Much Can I Borrow?
Loan amounts depend on your home equity, not your income.
Most ADU clients borrow between $75,000 and $250,000+, based on:
Property value
First mortgage balance
Local market conditions
Even if you have little to no income, you may qualify if your equity is strong.
Example ADU Projects Funded with Equity-Based Loans
Palm Desert Homeowner
Used $185K in equity to build a detached 2-bed ADU — approved in 5 days, no income docs.
Sacramento Fourplex Owner
Tapped $130K in unused equity to convert backyard garage into a rental ADU.
How the Process Works
Apply online – soft credit pull only
Provide ID + property details
We assess equity + credit
Fast approval and digital closing
Funds sent in 5–7 business days
✔️ No income docs
✔️ No tax returns
✔️ Just equity and a clean file
Compare to Other ADU Loan Options
Looking for more flexible documentation? Try:
We’ll help you choose the best-fit loan for your property and profile.
FAQs: Equity-Based Loans for ADU Projects
Q: What documents do I need to apply?
Usually just your ID, credit report (soft pull), and property details.
Q: What if I have no job or income?
That’s fine — we focus on equity, not employment.
Q: Does this impact my first mortgage?
No — it’s a separate 2nd mortgage or line of credit.
Ready to Use Your Equity to Build an ADU?
If you have equity, you may be days away from funding your new ADU — even if you can’t qualify anywhere else.