Skip to content
Thinking About an ADU? Start With a Free Property Assessment. Check My Property →
09.1HELOC Guide

Using home equity to build an ADU.

A home equity line of credit lets you borrow against the value you've built in your home — often a practical fit for staged construction.

→How It Works

Draw period

Borrow as needed up to your limit, often paying interest only on what you've drawn.

Repayment period

After the draw period, principal and interest payments begin.

Variable rate

Most HELOC rates move with the market; understand how payments could change.

What lenders look at

Home value, existing mortgage balance, credit, income, and debt-to-income ratio.

Estimated home value$1,100,000
Current mortgage balance$450,000
Combined loan-to-value limit80%
Illustrative available equity
$430,000
= $1,100,000 × 80% − $450,000

Educational calculation only. ADU GRID is not a lender and does not offer loans or financial advice. Actual borrowing capacity depends on appraisal, credit, income, debt-to-income ratio, and lender terms. Consult a qualified lender.

→Free Property Assessment

Find out what your property could support.

Share your address and goals. An ADU specialist will review the details and contact you to discuss what may make sense.

CallCheck My Property