How to Finance Your ADU in Charlotte

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 Charlotte

Queen City ADU Program

Up to $80,000 forgivable interest-free loan if you rent to tenants at or below 80% AMI. Launched September 2025.

Value: Up to $80,000 forgivable loan

Top ADU Lenders Operating in Charlotte

Skyla Credit Union

Local HELOCs for Charlotte Homeowners

Rates: From 7.0%
Max Loan: Subject to LTV

First Bank (NC)

Construction-to-Permanent Loans

Rates: From 7.5%
Max Loan: $500,000

Griffin Funding

ADU & Investment Property Loans

Rates: From 7.75%
Max Loan: $500,000

BayCoast Mortgage

ADU-Specific Financing Options

Rates: From 7.5%
Max Loan: $400,000

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

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