A huge upside to building an ADU on your property is that you can use an equity line of credit to finance it. Superior ADUs has built relationships with specific lenders who are able to help you go through the process. The most exciting part of this is that indirectly your tenants pay for the cost of the ADU!
Let’s take the example of a homeowner whose home is worth $600,000 with an outstanding mortgage on it of $200,000. If the homeowner has good credit, he or she can obtain a $90,000 equity line for 4.43% APR on a 30-year loan (10-year draw term & 20-year payback), resulting in a monthly payment of $452. Let’s look at the numbers using the example above of the Hillcrest model’s garage conversion:x