ADU Financing

Get financing for an accessory dwelling unit in 60 seconds with no impact to your personal credit score.
How much would you like to finance?

ADU Financing With Acorn Finance

Check New Loan Offers With No Impact To Your Credit Score


Get Your Financing Quickly

Easy Monthly Payments

Secure ADU Financing Today

Get your new accessory dwelling unit financed today. If you are in the middle of a home remodel and you’re thinking of adding an ADU or even pole barn structure, Acorn Finance can get you the money you need.

No matter your credit score, if you want to secure financing for an ADU in California, Texas, Georgia, or anywhere across the U.S., Acorn Finance will provide pre-qualified loans in seconds to get funds quickly. Easily sort all the loan offers by what matters to you: interest rate, payment amount, length of the loan term.

Never impact your credit score when comparing rates between our network of trusted partners. 100% online, customer-friendly process is designed to help you find affordable payment options with lenders that can quickly finance an ADU you want to build.

Acorn Finance Icon

How We're Different

Get Offers in Seconds

Get pre-qualified for multiple loan offers with an easy online form.

Won't Impact Your Credit

Receive pre-qualified offers with no impact to your credit scores.

Competitive Payment Options

Loans up to $100,000; Terms up to 12 years; APRs as low as 3.99%.

Receive Funds Quickly

In some cases, receive funds in as little as one business day.

“The process couldn’t have been any easier. I filled out a short form that took me less than 2 minutes and within seconds I got multiple offers from lenders.”


– Mike T. (TN)

“It was important to me that I could review my offers without any impact to my credit score, before deciding on the best loan option.”


– Carol R (FL)

“I like the easy online and 100% paperless experience of Acorn Finance. I received my money two days after completing my application.”


– Bob S (WI)

Ready To Secure ADU Financing?

Compare accessory dwelling unit financing options without affecting your credit score.


Best Accessory Dwelling Unit (ADU) Financing Options

An accessory dwelling unit (ADU) is an attractive option for creating more space while increasing your home’s value. So what does an ADU cost? Can you obtain financing for an ADU? The good news is, yes you can obtain ADU financing. You can also get tiny home financing if you prefer to live a more mobile lifestyle. While there really is not any bad news, ADU’s can be costly to build or convert. Below we will discuss average ADU costs, regulations, financing information, and more regarding ADU’s. Keep reading to learn all about ADU’s!

Read More

What is an Accessory Dwelling Unit (ADU)?

An independent residential stand alone, attached or detached unit located on the same lot as a single family home is known as an accessory dwelling unit (ADU). ADU’s commonly are referred to as accessory apartments, secondary suits, granny flats, and so on. Although it may sound complex, ADU’s are actually a very simple and old idea. Additional examples of an ADU can include…

– Tiny house in the backyard (as long as it’s on a foundation)

– Apartment over the garage

– Basement apartment

What is the purpose of an ADU?

In most cases, the primary purpose of an ADU is to create more space. Adding an ADU can be a great way to invest in your current home while making it more functional and increasing its value.

What qualifies as an ADU?

An ADU is usually defined as an additional living area that is independent of the main dwelling unit. The main dwelling unit should include a full kitchen and bathroom. An ADU can be classified as interior, attached, or detached. An interior ADU is usually a conversion of a garage or basement that is attached to the primary dwelling. Although an interior ADU is attached to the main dwelling it is different from an attached ADU. An attached ADU is also attached to the primary dwelling but it’s added rather than an existing space that is converted. A detached ADU is a free-standing structure such as a garage or guest house. An ADU should have one address and one utility meter, even if two families are staying on the property. While a two family property usually has a separate mailing address and separate utility meter.

Can you rent out an accessory dwelling unit?

Depending on your location, your accessory dwelling unit may or may not be rented. Some places may have regulations such as the owner must live on the property or that you can not advertise your ADU for rent.

Can you get a loan for an ADU?

Yes, you can get a loan for an interior, attached, or detached ADU. Most homeowners use either a secured loan or unsecured loan. New homeowners who have not yet built up enough equity in their homes may need to use unsecured loans, while those with credit challenges may be more likely to qualify for a secured loan, if they have sufficient home equity. A little later on we will dive into more detail on ADU financing options. But for now to keep it simple we will help you understand secured vs. unsecured loans. Secured loans typically require collateral such as your home. In order to qualify for a secured loan you’ll probably need to have plenty of equity in your home. Secured loans may offer lower interest rates, higher loan amounts, and longer terms. While this may sound appealing, homeowners should consider the risk involved with a secured loan. If you default on a secured loan you can risk losing your home. An unsecured loan does not require collateral and is much easier and faster to acquire. While the rates may be higher, they may not be much higher, especially in the current market. Acorn Finance has lending partners that offer unsecured ADU financing up to $100,000.

Do you need an architect for an ADU?

Hiring an architect for an ADU project is a wise investment. With the right tools and skill set you may be able to DIY an ADU but we highly recommend hiring an architect. An architect can help homeowners create an authentic, charming, and functional space. An architect is an important professional to have on your team of professionals. Once the architect is finished with the design portion, it’s the contractor’s job to bring the vision to life. It’s important to make sure the contractor and architect work well together. Whether you connect with a preferred contractor or architect first you should ask for referrals.

Can I put a second dwelling on my property?

Whether or not you can put a second dwelling on your property usually depends on your location and local regulations. In areas with a high cost of living ADUs are becoming more popular. Many local governments have voted to make permitting easier for ADUs in order to improve the quality of life for those within the community. The community can also benefit by retaining more residents. In places such as California, families need multiple incomes and support to achieve financial stability. ADUs can support multigenerational living while giving everyone the space they need. To learn more about your local regulations you should contact the local government agency or consult a contractor that specializes in your area.

Can you build a 2-story ADU?

As we mentioned earlier, there are three main types of ADUs; interior, attached, or detached. Detached ADUs can be 1 or 2-stories as long as their height does not exceed 25 feet. You should note that maximum height regulations may vary depending on location. Adding a second story loft in your ADU is becoming more and more popular. It keeps the space open and versatile while providing a unique design element. With many jobs transitioning to remote work, homeowners are looking to create functional workspaces. A loft can make a great office, bedroom, TV area, and so much more.

Does an ADU have to have a kitchen?

ADU’s do not have to have a kitchen in most cases. In California or expensive living areas, ADU’s are commonly used as independent rental units that include their own kitchen, entrance, bathroom, living space, parking space, and more.

Does adding an ADU increase property taxes?

In most places, adding an ADU will increase property tax but only on the marginal value. It’s usually treated like a home addition but the existing homes value is not reassessed.

How much does an ADU cost to finance on average?

ADU’s vary widely when it comes to cost. Factors such as whether the unit is attached or detached and design costs, permit costs, and so on can influence the cost of adding an ADU. Detached new construction typically costs more than attached or basement accessory dwelling units. On average ADU’s range from $150-$300 per square foot. In order to determine what your ADU could cost you should consult a professional and get an estimate.

How much does it cost to add an ADU?

ADUs vary widely when it comes to cost. Factors such as whether the unit is attached or detached and design costs, permit costs, and so on can influence the cost of adding an ADU. Detached new construction typically costs more than attached or basement accessory dwelling units. On average ADUs range from $150-$300 per square foot. In order to determine what your ADU could cost you should consult a professional and get an estimate.

Does an ADU have its own address?

No, an ADU should have the same address as the main dwelling or residence. If it appears there are two structures on one property but they have separate addresses or unit numbers this is most likely a two-family property. A two-family property is different from an ADU. ADUs typically mimic the style of the primary residence whether they are attached or detached. In addition, an ADU should not have its own utility meter. In most cases, the property owner is required to occupy the primary residence to fulfill zoning requirements for an ADU.

Can my HOA prevent me from building an ADU?

HOAs can prevent you from building an ADU. While it may be frustrating to have someone regulate what you can and can’t do to your home, try to remind yourself of what the HOA wants. HOAs want to make neighborhoods uniform and tidy. Therefore, even if your HOA turns down plans for an ADU, don’t just give up. Contact the HOA and see if there is anything else you can provide for approval. Another scenario is that the HOA may approve your plans but with costly restrictions. If you live in an area with an HOA you should prepare for obstacles they may place in the way. You may want to consider whether the HOA will enforce changes to your plans that would increase your cost, and what this will mean for your loan amount if you choose to finance the project.

Does an ADU increase property value?

Recent studies demonstrate that accessory dwelling units can increase home value by an average of 51%. In some areas, homeowners are being encouraged to add accessory dwelling units. Officials and communities believe that ADU’s can be the solution to helping aging family members, creating more room for children, or creating space to generate more income in areas that are particularly expensive to reside in.

Best ADU Financing Options

Adding an ADU can be a costly but well worth it investment. Luckily, financing options are available to make adding an ADU more affordable. Let’s compare the 3 best ADU financing options for 2020.

1. Personal Loan for an ADU

Personal loans are available for all types of credit and can be used for ADU financing. Although rates may be higher compared to secured loans, most personal loans don’t require any collateral. Personal loans are often easier to secure and tend to be less risky than comparable options. Acorn Finance is a top-rated platform that helps consumers receive multiple personalized and competitive personal loan offers up to $100,000 within seconds.

Benefits of an ADU Personal Loan

– Simple application and approval process

– No collateral needed

– Fixed interest rate for the duration of the loan (in most cases)

– Competitive interest rates

– Borrow almost any amount (typically between $1,500 – $100,000)

– Generous amount of time allowed to repay loan

– Quick funding

Personal Loan Cons

– Interest rates may be slightly higher than comparable options

– Credit history necessary in most cases

– Fixed payments

– Many personal loans have origination fees

– Some personal loans come with prepayment penalties

2. Home Equity Line of Credit

Do you have equity in your home? If so, a home equity loan can allow you to borrow against your house. These funds can be used to complete the ADU project you’ve been daydreaming about. However, doing your research is critical to determine whether a home equity line of credit (HELOC) is the best option for you. Compared to a personal loan, a home equity line of credit can be a riskier option.


– Good credit customers typically pay no closing costs

– No fees for cash draws

– Low interest rates (loan is secured by your home equity)

– Tax advantages

– Pay off loan early with no additional fees (in most cases)

– No justification needed for how the money is spent


– Low payment option may cause the loan to extend far longer than you wanted or create a bad financial situation

– Interest rates are adjustable, they can rise

– Requires ongoing attention to avoid a sudden increase in payment

– Look out for hidden fees

– Your home may decrease in value

3. Credit Card

Credit cards can be a convenient solution for ADU financing but you should consider the pros and cons. Some credit cards may offer special 0% interest promotions that you can take advantage of. However, in most cases credit cards have higher interest than personal loans. Credit cards may help cover some of the expenses associated with your ADU project but are most likely not the solution for financing the whole bill.


– Build your credit

– Convenient

– Potential to earn rewards

– Buy now, pay later

– Theft protection

– Special promotions may apple


– Higher interest rates

– Annual fees may apply

– Vague approval requirements

– Read the fine print

– Increased risk for fraud

Is ADU Financing the right choice?

In conclusion, a personal loan can be the least risky and best option for financing an accessory dwelling unit. Acorn Finance is a reliable and top-rated company that provides personal loans for ADU financing. Our platform can allow you to receive and compare multiple personalized and competitive loan offers within seconds. In addition, your credit should not be affected by submitting an application.

Three steps to get started with Acorn Finance:

#1. Complete and submit a short loan application online

#2. Receive multiple pre-qualified offers

#3. Get connected with lenders to obtain your pre-qualified loan

Transform your home today… apply online for ADU financing now!

Are You A Contractor?

Stop letting ADU financing deals slip through your fingers.

Close more sales with easy, affordable financing options for your customers