How to Finance Your ADU in Denver
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 Denver
Denver ADU Pilot Program
City of Denver offers streamlined permitting and reduced fees for qualifying ADU projects in certain neighborhoods.
Value: Reduced fees + faster permitsColorado Housing Finance Authority
CHFA offers below-market financing for housing projects including ADUs dedicated to affordable housing.
Value: Below-market ratesTop ADU Lenders Operating in Denver
FirstBank (Colorado)
Local construction loans and HELOCs- Rates: From 7.0%
- Max Loan: Subject to LTV
Bellco Credit Union
Colorado-based home equity and renovation loans- Rates: From 7.25%
- Max Loan: Up to 90% LTV
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
Unison
Home Equity Investment — no monthly payments- Rates: No monthly payment
- Max Loan: Up to $500,000
LightStream
Unsecured Home Improvement Loans- Rates: From 7.49%
- Max Loan: $100,000
Prosper
Unsecured Personal Loans for smaller ADUs- Rates: From 8.99%
- Max Loan: $50,000
Compare Denver ADU loan rates
Submit your project details and we'll match you with HELOC, construction-perm, and RenoFi lenders active in Denver. Soft pull, no obligation.
Get 3 free quotes from vetted Denver 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 Denver
Sponsored. Outbound links use rel=nofollow sponsored until partnerships are active.