ADU Financing

Getting an ADU loan through HFS Financial takes four steps:

• Inquire – See your rate in 60 seconds with the online Check My Rate tool. It’s a soft credit check, so your score stays untouched.
• Prequalify – Review your options online, or call and talk them through with a loan specialist.
• Verify – Upload a few basic documents to confirm your financial information.
• Get funded – The money goes directly to you, so you pay your builder on your schedule.

There’s no prepayment penalty on any loan option, and the Check My Rate tool is the fastest way to see what you qualify for.

ADU financing through HFS Financial covers any style of secondary dwelling your lot and local rules allow.

Detached ADUs

A standalone unit in the backyard is the classic ADU. One loan covers the full build: site prep, foundation, framing, and finishes.

Attached ADUs and garage conversions

Building onto the main house or converting a garage usually costs less than starting from scratch, and the loan works the same way. Borrow what the project needs, starting at $1,000.

Casitas

Common across the Southwest, a casita gives guests or family their own private space. Casita financing works like any other ADU loan, with fixed rates and no home equity required.

Guest houses

A guest house adds room for visitors now and flexibility later. One loan covers the build, the utilities, and the finishes.

Backyard cottages

A backyard cottage can be an office, a studio, or a rental. Approval is based on your credit and income, not on what the cottage will be used for.

Granny flats

A granny flat keeps family close while giving everyone their own front door. Terms from 1 to 30 years keep the monthly payment manageable.

Prefab and modular ADUs

Prefab units go up faster than stick-built construction, and because funds go directly to you, the manufacturer’s deposit and the site work come from the same loan.

An ADU is new construction, and construction lending usually means appraisals, draw schedules, and borrowing against your house. ADU financing through HFS Financial skips all three. Loans up to $450,000 are based on your credit and income, funds can arrive in as little as one day after approval, and the money is paid directly to you. Your home equity stays where it is, available for whatever comes later.

An ADU is a big number to look at all at once. The ADU loan calculator breaks it into a monthly payment. Plug in a loan amount and term to see what fits your budget, then Check My Rate shows your actual options.

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 personal loans for ADU projects, which means no home equity is required. There’s no appraisal and no need to refinance your mortgage. 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 ADU 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 approved, funds can arrive in as little as one day, paid directly to you. The exact timing depends on the lender you’re matched with and how quickly you provide any documents they request.