Make Your ADU Affordable with Flexible Financing

Building an Accessory Dwelling Unit (ADU) is one of the smartest investments you can make—but the upfront costs can feel overwhelming. The good news? There are affordable ADU financing solutions that make it possible for homeowners to build now and pay over time.

At Blue Diamond General Contractors, we don’t just design and build ADUs—we also help you explore the best financing options so your project fits your budget.

How Much Does an ADU Cost?

The cost of an ADU can vary depending on size, style, and whether you choose prefab or stick-built construction. On average, ADUs in California range from $15,000 to $300,000+.

But here’s the good news: with the right financing plan, your ADU can pay for itself over time through rental income or increased property value.

Popular ADU Financing Options

1. Home Equity Loans & HELOCs

Tap into your home’s equity to fund your ADU.

  • ✅ Low interest rates compared to personal loans
  • ✅ Borrow only what you need (HELOC)
  • ✅ Fixed payments make budgeting easy

2. Cash-Out Refinance

Refinance your current mortgage for a larger loan and use the difference to build your ADU.

  • ✅ Roll your ADU financing into one monthly mortgage payment
  • ✅ Take advantage of today’s competitive interest rates
  • ✅ Potentially lower your overall payment if rates are favorable

3. Renovation Loans (Fannie Mae HomeStyle, FHA 203k)

Specialized programs designed for home improvements and ADUs.

  • ✅ Lower down payments
  • ✅ Flexible credit requirements
  • ✅ Can finance both purchase + renovation

4. Personal & Construction Loans

Short-term loans tailored to construction costs.

  • ✅ Flexible approval process
  • ✅ Faster access to funds
  • ✅ Can bridge the gap until permanent financing

5. State & Local ADU Grant Programs

California offers grants and incentives for ADU construction.

  • ✅ Programs like CalHFA’s ADU Grant (up to $40,000 for eligible homeowners)
  • ✅ Designed to reduce upfront costs of design, permits, and construction fees
  • ✅ Limited availability—apply early

How BDGC Helps with Financing

We’re not just builders—we’re your partners in making your ADU a reality. Our team will:

  • Review your budget and goals
  • Connect you with trusted lenders and financing programs
  • Help you apply for California ADU grants and incentives
  • Align your financing plan with your design and construction timeline

Start Building Your ADU Without the Stress

Don’t let financing hold you back from creating rental income, housing family, or increasing your property value.

👉 Schedule a free consultation today and let our team walk you through your ADU financing options. We’ll help you design, permit, finance, and build your dream unit—all under one roof.