Accessory Dwelling Units (ADUs)

Ready to add an Accessory Dwelling unit to expand your square footage, create a mutigenerational living space, generate rental income, and potentially increase the value and resale appeal of your home?

At Planet Home Lending, we have loan products to help you put one in your own backyard.

What can an Accessory Dwelling Unit (ADU) be used for? The options are nearly endless.

  • College students home for summer break
  • Small business headquarters or home office
  • Living quarters for relatives
  • Rental income that preserves your privacy
  • Content creation or production studio space
  • A guest house for extended or seasonal visits

Call us today at 888-966-9044 to learn about your options or apply for a free quote.

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Accessory Dwelling Units Fast Facts

ADUs are attached or free-standing units, like a mother-in-law apartment or a guest house. An ADU includes all the basics — a living area, sleeping area, kitchen, and bathroom.

And now that more people are working from home, an ADU can even serve as a home office, or as a base to run a small business.

Accessory dwelling units can be built on-slab like regular construction, or be manufactured housing (prefab units built elsewhere and assembled on site). Either way, Planet is here to help you finance your new ADU. Give us a call at 888-966-9044 and let’s talk.


Accessory Dwelling Units FAQ

How do people pay for ADUs?

With Planet, there are multiple options. You can access the equity in your home with a renovation home loan, a cash-out home loan, or other mortgage loan options that fit your needs.

What are the requirements for an ADU home loan or mortgage?

Much like a regular mortgage, ADU requirements will depend on your unique financial needs. Planet offers Freddie Mac ADU home loan options, as well as Fannie Mae ADU loans. We can even provide Jumbo financing for more expensive projects or highly competitive markets.

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What kind of mortgage loans can help me build an ADU?

Planet offers multiple different types of loans that could suit your needs.

Freddie Mac and Fannie Mae both offer ADU home loans, and there are also other loans that allow you to access the equity in your home, roll construction costs into your mortgage loan, or are specifically designed for renovations.

Your best bet is to call and speak with one of our mortgage professionals. We’re here to help get you a great home loan at a great rate. Call us today at 888-966-9044.

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Can I build an ADU on my property, like in my backyard or by my garage?

That depends on your local ordinances, but your Planet mortgage expert will be able to help you find your best financing option once you confirm that your ADU will meet local zoning rules.

Is an ADU the same thing as a tiny home?

Not exactly, no. While they may look similar, tiny homes are usually mobile. An ADU is permanently built on-site.

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Can I convert my garage into an ADU?

Not every ADU is in the backyard. Some homeowners will convert an existing garage or other structure into an accessory dwelling unit. Planet offers renovation loans that might be the perfect choice for conversions just like yours.

What are ADU home loans rates like right now?

Rates change fast, sometimes daily or even more often. At Planet, we always work to get you the best rates available. Call us for current rates and professional assistance today.

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