How to Finance Your ADU in Bay Area
Compare rates, find local lenders, and discover local grants to fund your backyard cottage or garage conversion in 2026.
Financing Options Comparison
| Loan Type | Rate | Max Amount | Pros | Cons |
|---|---|---|---|---|
| HELOC | 7.5% - 9.5% | Up to 85% LTV | Flexible draws Interest only period | Variable rates Requires current equity |
| Cash-Out Refi | 6.5% - 7.5% | Up to 80% LTV | Fixed rate Single mortgage | Resets 30yr clock High closing costs |
| Construction Loan | 7.0% - 9.0% | Based on future value | Great for low equity Large loan amounts | Complex draws Higher rates initially |
| Home Equity Investment | No Monthly Pmt | Up to $300k | No monthly payments Easy qualification | Give up future appreciation Expensive long-term |
Local Grants & Incentives in Bay Area
GSFA Platinum ADU Grant
California Golden State Finance Authority grant for ADU construction on owner-occupied properties.
Value: Up to $40,000San Jose ADU Ally Program
Streamlined permitting, pre-approved plans, and financing navigation for San Jose homeowners.
Value: Technical AssistanceTop ADU Lenders Operating in Bay Area
Patelco Credit Union
Local HELOCs for Bay Area Homeowners- Rates: From 7.25%
- Max Loan: Subject to LTV
First Republic Bank
Jumbo Construction Loans- Rates: From 7.0%
- Max Loan: $2,000,000
Opes Advisors
ADU-Specific Renovation Loans- Rates: From 7.5%
- Max Loan: $500,000
RenoFi
Renovation Loans Based on After-Renovation Value- Rates: From 7.25%
- Max Loan: $500,000
Figure
Fast Online HELOC (5-Day Funding)- Rates: From 7.75%
- Max Loan: $400,000
San Francisco FCU
Home Equity Loans & Lines- Rates: From 7.0%
- Max Loan: Subject to LTV
Compare Bay Area ADU loan rates
Submit your project details and we'll match you with HELOC, construction-perm, and RenoFi lenders active in Bay Area. Soft pull, no obligation.
Get 3 free quotes from vetted Bay Area ADU builders
No spam. No obligation. Avg response time: 1 business day.
We never sell your data. You control which builders contact you.
Got Your Financing? Now Manage the Build.
TerraLine connects your loan, budget, and schedule in one place. See exactly how much you've drawn, what's committed, and what's left — no spreadsheets needed.
Compare national ADU lenders for Bay Area
Sponsored. Outbound links use rel=nofollow sponsored until partnerships are active.