questions? you're in the right place
ADU financing
You might be wondering what kind of financing is right for your ADU project — luckily, we have the answers you need!
- Josh Bartucca - Sr. Loan Officer
- 916-549-3884
- josh.bartucca@renofi.com
- www.renofi.com
- NMLS ID: 461713
- RenoFi (NMLS ID: 1802847)
we're here to help
financing options
Home equity line of credit
A HELOC, or home equity line of credit, allows you to access the cash you need for your ADU project by borrowing against your home’s equity. HELOCs typically have lower interest rates than loans, making them an attractive option.
Cash-out refinance
A cash-out refinance replaces your current mortgage with a new mortgage at a higher value than you currently owe. This is a good option that consolidates your debt for your house + ADU project into one payment.
project or construction loan
Also known as a home improvement loan, these loans are designed for work on your house like improvements and repairs … or adding an ADU! While this type of loan may have a slightly higher interest rate, it doesn’t use your home as collateral like a HELOC does.
have some questions?
How much does a typical ADU cost?
Our tiny homes start at 125k, but that price depends on the size and finishes you choose. We offer standard options as well as upgrades and modifications to suit your needs.
does an ADU increase my property value?
Tiny homes can increase your property value and make your home stand out to potential buyers if you decide to sell. In addition, some localities allow subdividing and selling your tiny home.
what are my financing options?
Typically, construction loans, home equity lines of credit (HELOC), or cash-out refinancing are the options people take to add an ADU to their property. We have preferred lenders that can help you select the best option!
can i rent my tiny home?
In the Phoenix, AZ area, tiny homes cannot be short-term rentals, but can be leased out long-term (more than 30 days).
how do i know if i can build a tiny home on my property?
You’ll want to start by checking your zoning laws and the requirements for a detached dwelling. Generally, in Phoenix, AZ and the surrounding areas, your lot needs to be at least 10,000 square feet. In addition, ADUs are subject to maximum height and lot coverage requirements.
can i increase the square footage of the model i choose?
We can typically increase square footage by increasing the linear size, however, we don’t change the configurations of our models. This means we could increase a tiny house by 10 feet on each side, and the inside space would increase accordingly.
what other customizations do you offer?
All of our interior and exterior standard finishes, like cabinet pulls, flooring, interior paint, roofing, and siding can be upgraded. In certain cases, we can also accommodate modifications to match HOA requirements.
how long does it take to build an adu?
Our ADUs typically take between 6-9 months to build! However, this is dependent on your particular project and the timeline can change with your needs and requirements.
I have an hoa. Can i still have an adu?
You sure can! Some HOAs have regulations, but if your HOA allows ADUs, we can accommodate the requirements such as lap siding to match the neighborhood aesthetic.
