How to Finance Your ADU in Spokane
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 Spokane
City of Spokane Middle Housing Support Team
Free City of Spokane resource that helps homeowners confirm ADU feasibility, understand HB 1337 allowances (including up to two ADUs per lot with no owner-occupancy), and navigate permitting before hiring a builder. Contact MiddleHousing@spokanecity.org or (509) 625-6500.
Value: FreeWashington State Housing Finance Commission (WSHFC)
Statewide down-payment assistance and affordable home financing offered through local partners such as Canopy in Spokane. Program terms change — verify current eligibility with a participating lender.
Value: VariesHB 1337 Reduced ADU Impact Fees
Under Washington's HB 1337, Spokane caps ADU impact fees at 50% of the single-family rate and cannot require owner-occupancy — improving the financing math on ADU rentals. Confirm current fees with the City of Spokane.
Value: ~50% fee capTop ADU Lenders Operating in Spokane
STCU
Home Equity Loans & HELOCs for Spokane Homeowners- Rates: From ~6.74% APR (verify)
- Max Loan: Subject to LTV
Numerica Credit Union
HELOC with Fixed-Rate Lock (up to 15 yrs)- Rates: Rates vary — verify
- Max Loan: Subject to LTV
Washington Trust Bank
Construction & Home Equity Loans — Spokane's Hometown Bank- Rates: Call for current rate
- Max Loan: Based on appraisal
Global Credit Union
HELOC with No Annual Fee- Rates: Rates vary — verify
- Max Loan: Subject to LTV
Canopy Credit Union
Home Loans & WSHFC Partner Financing- Rates: Rates vary — verify
- Max Loan: Subject to LTV
RenoFi
Renovation Loans Based on After-Renovation Value- Rates: From ~7.5%
- Max Loan: $500,000
Compare Spokane ADU loan rates
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