ADU financing in Sacramento
How to finance your Upside ADU
Most Sacramento owners finance an ADU with home equity — a HELOC or cash-out refinance — or a renovation or construction loan underwritten against the finished value. Upside introduces you to vetted local lenders, then you start the build for $1,000 down with payments tied to inspected milestones.
Lender intros, not in-house lending · $1,000 down (CA legal max) · inspection-tied draws · grant status current as of June 2026.
Financing options we work with
There's no single "ADU loan" — you fund the build with a loan you already qualify for, secured against your home or its finished value. These are the four routes our Sacramento clients use most. We don't lend; we connect you with loan officers who close these every week and who count projected ADU rent toward qualifying.
HELOC / home-equity line
Draw against your existing equity as the build hits each milestone, then pay interest only on what you've pulled. The most common route for Sacramento owners sitting on appreciation.
Cash-out refinance
Replace your mortgage and pull equity in one loan to fund the ADU. Makes the most sense when today's rate isn't far from your existing one.
Renovation loan (RenoFi / HomeStyle)
Underwrites against your home's after-completion value instead of current equity — so a brand-new ADU can pencil even if you bought recently.
Construction-to-permanent
Funds the build in draws, then converts to a standard mortgage at completion — a single loan, a single closing, no second refinance.
Which loan wins depends on your equity, your current rate, and your timeline — the full mechanics, rate trade-offs, and eligibility for each product live in our neutral California ADU financing guide. This page is about getting you funded; the guide explains how each loan actually works.
Grant & program status
The CalHFA $40,000 ADU Grant is exhausted. As of June 2026, the program's funds are depleted and it is not accepting new applications. Plenty of builder and lender sites still list it as available — that's stale. There is no statewide ADU grant taking applications in California right now, so don't build your budget around free money that isn't there.
Exhausted — no new applications
Equity or renovation/construction financing
We alert active clients the day it's announced
For the full history of the grant, who qualified, and what may replace it, see the financing guide and our 2026 California ADU law update.
Monthly payment vs. rent
The reason ADUs finance so well: the rent usually covers most of the payment. A 750 sq ft detached unit near $228,750 financed over 30 years runs about $1,599/month, while the same unit rents for roughly $1,900–$2,500/month across much of the Sacramento region. For many owners that's a unit that nearly pays for itself — and a lender who counts that rent toward qualifying.
Figures use a 7.5% rate over 30 years on the full project cost; your actual payment depends on rate, term, down payment, and loan type. Rent comps, payback math, and per-neighborhood yields live in our ADU rental income & ROI guide.
Worked example: 750 sq ft detached
The Sacramento sweet spot — under the 750 sq ft impact-fee exemption, but renting like a real home. Here's the financed-payment-against-rent snapshot at our published rate.
What an ADU might cost per month
A round-number way to picture it. Finance $250,000 over 30 years at ~7.5% and the payment lands near ~$1,750/month — often offset by roughly $1,500–$2,800/month in Sacramento ADU rent. In many cases the rent covers most or all of the payment, which is why an ADU can pencil even when you borrow the full cost.
Illustration only — not a loan offer. Rates, terms, and your actual payment vary by lender, credit, equity, down payment, and loan type; rent depends on size, location, and finish. Common ways Sacramento owners fund a build: a HELOC or cash-out refinance against existing equity, a renovation loan such as Fannie Mae HomeStyle (or RenoFi) underwritten against the finished value, or a construction loan that converts to a mortgage at completion. We introduce the lenders; you choose the loan. Run your own numbers in the cost calculator.
How payments work with Upside
Your loan funds the build, but it never gets ahead of the work. You put $1,000 down — the California legal maximum, not a percentage — and the balance is paid in milestone draws tied to inspected phases. A draw releases only after that stage passes a real inspection, so your lender's money and our crews move in the same step. We coordinate the lender's draw schedule with our inspection milestones so there's no gap between a passed inspection and a released payment.
$1,000 down — the legal cap, not a percentage
Lender draws release after each inspected phase
Balance funds at final inspection & walkthrough
The full draw schedule and the price it's drawn against live on our pricing page; how your deposit is held and protected lives on our guarantee page. This page owns the financing; those pages own the price and the deposit terms.
Get pre-qualified
Tell us about your lot and goals and we'll do two things: run a feasibility check on your property, and introduce you to a vetted ADU lender who can pre-qualify you — often with projected rent counted toward your income. No cost, no obligation, no credit pull from us.
- Matched to a lender who specializes in ADU loans
- Broker-grade rent projection to support your qualifying income
- Feasibility + ballpark all-in number for your specific lot
- Lender introductions, not gatekeeping — you pick the loan
Want to size the build first? Estimate your cost or see published pricing before you talk to a lender.
Start your pre-qualification
One business day to a real human — not an auto-responder.
Step 1 of 3
ADU financing FAQs
Most Sacramento owners finance an ADU with home equity — a HELOC or cash-out refinance — because rates and fees beat unsecured loans. Owners with thin equity use a renovation loan (RenoFi or Fannie Mae HomeStyle) that underwrites against the home's after-completion value. Upside introduces you to lenders who do all three.
No. The CalHFA $40,000 ADU Grant Program is exhausted and is not accepting new applications as of June 2026. Many builder sites still advertise it as live — it isn't. Budget around the loan options on this page, and we'll flag you the moment a new funding round is announced.
Often, yes. Many lenders count a share of the projected ADU rent as income when you qualify, which can meaningfully raise your borrowing power. We hand the lender a broker-grade rent projection for your unit and submarket so that income is documented, not guessed.
$1,000, or 10% of the contract — whichever is less. Because every ADU costs far more than $10,000, your deposit is capped at $1,000 by California law. After that you pay in milestone draws tied to inspected phases, so your financing only funds work that's already passed inspection.
Neither — we're your builder, not your lender. We introduce you to vetted local lenders and loan officers who specialize in ADU financing, then coordinate their draw schedule with our inspection-tied milestones. You choose the lender and the loan; we keep the build and the money in step.
Often, yes. A 750 sq ft detached ADU near $228,750 financed over 30 years runs roughly $1,599/month, while the same unit rents for about $1,900–$2,500 in much of the Sacramento region — so rent can cover most or all of the payment. Run your exact numbers in the calculator.
Informational only, not financial advice. Loan terms, rates, and program availability change — confirm details with a licensed lender. For neutral, statewide loan mechanics, read the California ADU financing guide.
Find out what you can finance
Get matched with an ADU lender, a feasibility check on your lot, and an all-in number — then start the build for $1,000 down with inspection-tied draws.