ADU financing options displayed with visuals of a modern ADU, illustrating affordable solutions for expanding your living space.

ADU financing in Los Angeles: How to finance an ADU

Financing an ADU can be an important step toward creating additional living space. We can help you understand ADU financing in Los Angeles, Burbank and other areas of Los Angeles County and introduce you to convenient financing options. Our expert team will find the best financing option to fit your needs and budget. Whether you are looking to increase your living space or build a new facility, we will make the process affordable and convenient for you, just contact us.

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How we help with ADU financing

If you are wondering how to finance an ADU, we know the answers. EG Modern offers professional assistance in finding the best options. Our experts will help you understand all the intricacies of ADU financing and get the best financing terms for your project.

ADU financing options we will help you with

Home Equity Line of Credit (HELOC)

Home equity line of credit is one of the most popular ADU financing options in Los Angeles County. It is a flexible financing option that allows you to utilize the existing equity in your property. Choosing a home equity line of credit will give you a line of credit from which you can draw funds as needed, paying for the construction of your ADU in stages. This financing option offers lower interest rates than personal loans, and interest only accrues on the amount used. Repayment of the loan can be fixed or dependent on a repayment schedule. This approach makes HELOCs convenient for projects where costs may vary during the process.

ADU-specific loans

There are specialty ADU construction loans that are tailored to meet the unique needs of this type of construction. This specifically ADU construction loan offers more favorable terms than traditional home loans. The loans typically have low interest rates and long repayment terms that reduce monthly payments. They may include funds for design, materials and construction costs. Specialty ADU loans are suitable for property owners who want to get started on a project quickly and reduce overall costs. We can help you choose the best option for your budget and the specifics of your project.

Compact ADU with modern design, offering efficient use of space without sacrificing comfort.

Stylish compact ADU showcasing functional layout for small living spaces.

Personal loans

If you don't want to use the property as collateral, consider a personal loan. This type of ADU financing is suitable for covering materials, labor and other construction costs. Personal loans typically have shorter repayment terms and higher interest rates than HELOCs, but they offer flexibility and quick approval. Since no collateral is required, they are suitable for those who don't want to risk their real estate. Personal loans can also be useful to cover unexpected expenses during the construction process.

Cash-out refinancing

This option allows you to refinance your existing mortgage loan to get funds to finance an ADU.
This is a favorable loan option because it allows you to lower the interest rate on your mortgage loan while providing financing for the project. What is the process involved? The current mortgage loan is replaced with a new mortgage loan and includes the amount of the additional loan. This approach allows you to keep your monthly payments low and utilize your accumulated equity with minimal cost. Refinancing is particularly suitable for owners who have accumulated significant equity and want to optimize their finances for investment in an ADU.

Benefits of Financing Your ADU

ADU financing has a number of benefits:

Quick start of the project

Financing allows you to start building your ADU right away without waiting for the entire amount to be accumulated.

Flexible ADU loan terms

Various ADU financing options offer favorable loan terms, making repayment easier.

Image showing savings that can customer has with EG Modern.

Long-term savings

Favorable terms can help you save on interest rates and lower your overall repayment costs in the long run.

Why choose us for ADU financing in Los Angeles County?

We are EG Modern and we are ready to offer the best financing options for your project because we understand the complexities of ADU financing in Los Angeles, Burbank, and other areas of San Fernando Valley. Our professionals will help you from choosing an option to securing financing. As an experienced ADU contractor in Los Angeles, we guarantee that the process will be quick and easy. Contact us for a free consultation to analyze your project in more detail.