Comparing rates? See all 7 ADU loan types side-by-side.
Current rate ranges, terms, and qualification requirements in one table.
ADU Loan Calculator — Compare Every Financing Option in 60 Seconds
Estimate the monthly payment on an accessory dwelling unit (ADU) loan across every major product — Home Equity Line of Credit, construction-perm, cash-out refinance, DSCR, RenoFi, and fixed home equity loans. Enter your build cost, down payment, credit score band, and state to see side-by-side rate and payment scenarios plus the rent an ADU could realistically earn in your market.
Enter your project details
Loan amount: $200,000
HELOC
Variable rate, interest-only draw option
Flexible line of credit. Only pay interest on what you draw.
Construction-Perm
Draws during build, converts to mortgage
Funds disbursed by milestone. Permanent loan activates at completion.
Cash-Out Refi
Replaces your current mortgage
Combines existing mortgage + ADU cost into one new 30-year loan.
Rent-coverage estimate
Typical ADU rent in the National region runs about $1,800/mo. That covers roughly 112% of the featured HELOC monthly payment shown above.
Get matched with 3 ADU lenders in your state — free
We will introduce you to three vetted ADU-experienced lenders. No obligation. No credit pull until you choose one.
Compare ADU lenders
Quick links to lenders that serve ADU borrowers. Sponsored.
ADU loan product comparison
| Product | Typical rate | Term | Best for |
|---|---|---|---|
| HELOC | 7.5–10.5% variable | 10 draw + 20 repay | Homeowners with 20%+ equity who want flexibility |
| Home Equity Loan | 7.3–10.3% fixed | 10–30 yr | Borrowers who want a fixed monthly payment |
| Cash-Out Refi | 7.5–8.5% fixed | 30 yr | Current mortgage rate already near market |
| Construction-Perm | 8.0–12.0% | 12–18 mo then 30 yr | Ground-up builds over $200K |
| DSCR | 8.5–12.0% | 30 yr | Investors qualifying on rent |
| RenoFi | 8.0–11.0% | 10–20 yr | Limited current equity, new-build ADUs |
Frequently asked questions
What is the best loan to finance an ADU in 2026?
For most homeowners with significant equity, a HELOC or home equity loan offers the lowest rates and fastest approval. For ground-up builds over $200,000, a construction-to-permanent (construction-perm) loan is typically the best structure because it disburses funds in draws and converts to a permanent mortgage when the ADU is complete. Investors who qualify based on projected rental income often use a DSCR loan.
How much does an ADU loan cost per month?
A $250,000 ADU loan at 7.5% over 20 years runs roughly $2,015 per month in principal and interest. HELOCs tend to be 0.25–0.5% cheaper than cash-out refi, while construction-perm loans add 0.5–1.0% during the build phase. Use the calculator above to see an exact monthly payment for your build cost, down payment, and state.
Can ADU rent cover the loan payment?
In many West Coast and Northeast markets, yes. A detached 800 sq ft ADU rents for $2,200–$3,000 per month in cities like San Diego, Seattle, and Boston — often enough to cover the full HELOC payment on a $200K–$300K build. The calculator shows the estimated rent coverage percentage based on your region.
What credit score do I need for an ADU loan?
Most lenders require a 680+ FICO for a HELOC or home equity loan. Construction-perm loans typically require 700+. DSCR loans for investors are generally available down to 660 but price in meaningful rate bumps below 720.
Do I need equity to finance an ADU?
For HELOCs, home equity loans, and cash-out refis, yes — lenders generally require 15–20% equity to remain after the draw. RenoFi and Fannie Mae HomeStyle loans are exceptions: they let you borrow against the post-construction appraised value, which can unlock financing for homeowners with limited current equity.
Rebuild your cost estimate with different inputs.
Project long-term return on your ADU investment.
Complete guide to every ADU loan product.
Managing a Construction Loan? Stay on Top of Every Draw.
TerraLine gives you a real-time view of your loan balance, disbursements, committed costs, and remaining budget — so draw day never surprises you.
Compare ADU-friendly lenders
Verified ADU financing partners. Sponsored links — see disclosure below.
Credible
Compare prequalified HELOC and home-equity rates from multiple lenders in minutes — checking rates won't affect your credit score.
RenoFi
Renovation loans that qualify against your home's post-construction (after-renovation) value — built for new ADUs where you don't yet have the equity.
Advertiser disclosure: Some links on this page are affiliate links. If you open an account or get matched with a lender through them, ADUGlossary may earn a commission at no additional cost to you. This does not influence our editorial comparisons.