ADU Financing

How much can I borrow for an ADU?

How much you can borrow for an ADU depends on your credit profile, income, debt-to-income ratio, and the lender you’re matched with. HFS Financial connects homeowners with lenders offering home improvement loans up to $450,000, though most ADU projects require far less than the maximum. The right move is to borrow only what your ADU project actually needs rather than maxing out your approval.

What credit score do I need to get an ADU loan?

There’s no single minimum credit score for an ADU loan. HFS Financial’s lending partners work with a range of credit profiles, and the score you need depends on the lender, the loan amount, and your overall financial picture. Generally, the higher your credit score, the better the interest rate and terms you’ll qualify for. The only way to know what you’d actually qualify for is to check — and HFS Financial’s 60-second inquiry uses a soft credit check, so you can see your options without affecting your credit score.

How long can I finance an ADU?

Loan terms for an ADU through HFS Financial’s lending partners range from 1 to 30 years. A longer term lowers your monthly payment but increases the total interest you’ll pay over the life of the loan. A shorter term raises your monthly payment but reduces the total interest. The right term depends on how much you’re borrowing and what monthly payment fits comfortably into your budget.

Do I need equity in my home to get an ADU loan?

No. HFS Financial partners with lenders offering unsecured personal loans for ADU projects, which means no home equity is required. There’s no appraisal, no lien on your house, and no risk of losing your home if something goes wrong. Approval is based on your credit and income, not the value of your property.

How much will my monthly payment be?

Your monthly payment depends on three things: how much you borrow, the interest rate you qualify for, and your loan term. A longer term lowers the monthly payment but raises total interest; a shorter term does the opposite. To see an estimate for your specific ADU project, use the HFS Financial home improvement loan calculator — plug in the loan amount and term and it’ll show you what a monthly payment might look like before you ever submit an inquiry.

How fast can I get approved?

The HFS Financial loan inquiry takes about 60 seconds and uses a soft credit check, so it doesn’t affect your score. Once you’re matched with a lending partner and you move forward with a formal application, smaller loans can fund as quickly as the same day or the next business day. Larger loans typically take 3 to 7 business days to fund once approved. The timeline depends on the lender you’re matched with and how quickly you provide any documents they request.