Financing
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Financing Your Elbow Room ADU, Studio, or Pod
There are many ways to finance your dream ADU. The qualifications and stipulations vary for different financing options and lenders.
There are several routes to ownership and encourage you to explore those listed below and any you discover in your search.
Personal Loans
Personal loans are great for smaller projects under $100k. Applications tend to be quick with no effect on credit scores. These loans have faster funding than traditional loans.
HELOC & HILOC
Consider a HELOC or HILOC for any sized project. You can leverage the equity in your home to increase the value of your property now. Elbow Room's partnership with Frost Bank has been successful for many customers seeking a HELOCs or HILOCs and want to use their Elbow Rooms for personal purposes.
Other banks, credit unions, and mortgage holders may be open to these lending options for commercial use or rental income. They may also offer new construction loans for building ADUs on vacant property.
Retirement Loans
Retirement account loans, such as 401K accounts, may allow up to 5 years for repayment on as much as 50% of the account balance. To start this conversation, reach out to your financial planner.
More Financing Ideas for ADUs, Studios, & Pods
Find out about the many ways to finance your ADU or studio. Click on the button below to read an article by Renfi. There are so many ways to make your dream a reality.