Financing Your ADU: What You Need to Know
Building a backyard home might be more affordable than you think.
With interest rates still high, many homeowners assume they need to refinance their current mortgage to fund an ADU. But that’s not your only option—especially if you’ve already locked in a great rate.
Here’s the good news: You don’t have to touch your first mortgage to build an ADU.
Many homeowners are tapping into their existing home equity through a HELOC (Home Equity Line of Credit) or a second mortgage—sometimes going up to $1 million or 90% LTV (Loan-to-Value).
That means you can fund your build while keeping your low-rate mortgage intact.
Why Does This Work Well in California?
In high-value markets like the Bay Area, homeowners often have hundreds of thousands of dollars in equity that they’re not using. Turning that equity into a high-performing real estate asset—like a rental-ready ADU—is a smart way to generate passive income without selling or refinancing.
If your goal is to build long-term wealth, expand your living space, or create multigenerational housing, a HELOC or second mortgage can give you the financial flexibility to move forward.
Apex Homes Can Help！
At Apex, we guide homeowners through the entire ADU process—from financing and design to permitting and construction. We work with trusted local lenders who understand ADUs and can help you explore all available options based on your goals and home equity.
Not sure where to start? Our team offers free consultations and feasibility studies to help you understand what’s possible—financially and structurally.
Where Apex Makes It Easier
But the real advantage starts with our pre-approved ADU plans, officially recognized by local city governments for faster permitting and fewer delays.
Our plans are already accepted in ten California cities, including:
- San Jose
- Antioch
- Campbell
- Chino
- Cupertino
- Gilroy
- Mountain View
- Rancho Cucamonga
- Saratoga
- Pomona
That means less paperwork, shorter wait times, and a smoother path to construction—especially when paired with smart financing options.
Ready to Unlock Your Equity?
With Apex’s pre-approved ADU design plans, building your unit is faster and easier—no guesswork, no delays. These plans are optimized for permitting across nine California cities and designed with both function and aesthetics in mind.
View our floor plans to explore layouts, features, and finishes that work for your lot and lifestyle.
Let’s explore what you can build—and how to fund it without disrupting your current mortgage. Apex will guide you every step of the way, from feasibility to financing to final build.
