Bring Your Little Vision to Life
ADU Financing in Atlanta
Unlock your financing potential without impacting your credit score! Benefit from our network of lenders offering competitive rates and flexible terms, all with no hard inquiry to your credit. Check your eligibility today.
Renofi provides secured and unsecured loans. Contact them today to see your loan options.
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Funding Your Investment
Financing options
Home Equity Line of Credit (HELOC)
In the current economic landscape, many homeowners are turning to a Home Equity Line of Credit (HELOC) as a flexible financing option. This credit line is secured by the equity in your home and consists of two phases: a draw period and a repayment period. You only pay interest on the funds you use, which are available to you typically for a term of about 10 years—perfect for funding your project as needed.
Cash-Out Refinance
Similar to a HELOC, a cash-out refinance leverages your home’s existing equity, but it works differently. Instead of adding a new line of credit, this option replaces your current mortgage with a new one, potentially at a different rate. The difference between the new mortgage amount and your previous one is given to you in cash, which you can use to finance an ADU or other home improvements.
This method is particularly advantageous if you have significant home equity and if your current mortgage rate is higher or comparable to the current market rates.
Renovation or Construction Loan
Unlike equity-based options, a renovation or construction loan provides financing without using your home as collateral. This makes it a suitable choice if you want to avoid securing your property or if you have limited equity in your home.
However, keep in mind that this type of loan often comes with stricter eligibility requirements, including higher credit scores and income levels. Additionally, these loans may carry higher interest rates, which can result in a more substantial monthly payment than other options.
Additional Options
Beyond the traditional routes, there are several other ways to finance your project, such as:
- Taking out a personal loan or line of credit
- Using retirement savings or other personal investments
- Selling another property or asset
- Borrowing from family or friends
- Obtaining private money loans
- And many more creative solutions
These alternatives can provide flexibility and additional ways to fund your next project.
DISCLAIMER
FYI
Disclaimer: The information provided on this website is for general informational purposes only and should not be considered financial advice. We are not financial consultants, and we do not offer personalized financial, investment, or legal advice. Before making any financial decisions, including financing an accessory dwelling unit or any other project, we strongly recommend consulting with a qualified financial advisor or professional to assess your specific needs and circumstances.
