Department 04 Financing Division

The Bank
Vault

Every homeowner deserves financing options.
With 50+ programs available, we'll find the right path for your ADU project.

50+
Financing Programs
94%
Approval Rate
$0
To Get Started
Find My Options Explore Programs

How Would You Like to Finance Your ADU?

Choose your path based on your situation. We have options for every homeowner.

I Have Home Equity

HELOCs, Cash-Out Refi, Home Equity Loans

I Need a Construction Loan

Build-to-Perm, Renovation Loans

I Want Grants & Incentives

State, Federal & Local Programs

Special Programs

VA, FHA, First-Time Buyers, Seniors
Complete Program Directory

All Your Financing Options

From federal programs to local grants, we've compiled every available option for Massachusetts and Rhode Island homeowners.

Federal Programs

Government-backed financing with competitive rates

FHA
3.5% Down

FHA 203(k) Renovation Loan

Finance your ADU construction as part of your home purchase or refinance. Includes renovation costs in one loan.

  • Credit scores from 580
  • Up to $35,000 for Standard
  • Unlimited for Full 203(k)
Check Eligibility
VA
0% Down

VA Renovation Loan

Veterans and active military can finance ADU construction with no down payment and no PMI required.

  • No down payment required
  • No PMI ever
  • Competitive rates
Check Eligibility
FANNIE MAE
3% Down

HomeStyle Renovation

Conventional loan option for ADU construction. Finance up to 75% of the "as-completed" value.

  • Up to 75% of future value
  • 620+ credit score
  • Single close option
Check Eligibility
FREDDIE MAC
3% Down

CHOICERenovation

Similar to HomeStyle with flexible renovation financing including ADU construction projects.

  • Resilience improvements eligible
  • 620+ credit score
  • Energy efficiency bonuses
Check Eligibility
USDA
0% Down

USDA Rural Development

Zero-down financing for eligible rural and suburban areas. Many MA/RI towns qualify!

  • No down payment
  • Low mortgage insurance
  • Income limits apply
Check Eligibility
HUD
No Equity Needed

HUD Title 1 Property Improvement

Government-insured loans for home improvements. No equity required for loans up to $25,000.

  • Up to $25k unsecured
  • Up to $60k secured
  • 20-year terms available
Check Eligibility

Massachusetts State Programs

State-sponsored financing and incentives for MA homeowners

MASSHOUSING
Low Rates

MassHousing Home Improvement Loan

Below-market interest rates for home improvements including ADU construction for qualifying homeowners.

  • Up to $50,000
  • Below-market rates
  • Income limits apply
Check Eligibility
Popular
MASS SAVE
0% Interest

Mass Save HEAT Loan

0% interest financing for energy-efficient ADU construction. Combine with insulation and HVAC upgrades.

  • 0% APR for 7 years
  • Up to $25,000
  • Must include efficiency upgrades
Check Eligibility
LOCAL
Grant Funding

Community Preservation Act (CPA)

Some MA municipalities offer CPA funds for affordable ADU development. Check your town's program.

  • Grant funding available
  • Town-specific programs
  • Affordability requirements
Check Your Town

Rhode Island State Programs

State-sponsored financing and incentives for RI homeowners

RIHOUSING
Low Rates

RIHousing Home Repair

Low-interest loans for home repairs and improvements including ADU projects for income-qualifying households.

  • Below-market rates
  • Deferred payment options
  • Income limits apply
Check Eligibility
ENERGY
0% Interest

Rhode Island Energy HEAT Loan

0% financing for energy efficiency improvements. Perfect for building an energy-efficient ADU.

  • 0% APR financing
  • Up to $25,000
  • Must meet efficiency standards
Check Eligibility
RI COMMERCE
Tax Credits

RI Residential Tax Credits

Various tax credit programs for energy efficiency and housing development in Rhode Island.

  • Solar investment credits
  • Energy efficiency rebates
  • Historic preservation credits
Check Eligibility

Traditional Bank Financing

Leverage your home equity or secure construction financing

HELOC

Home Equity Line of Credit. Draw funds as needed during construction.

Call our financing partners for current rates

Home Equity Loan

Fixed-rate lump sum based on your home's equity. Predictable payments.

Call our financing partners for current rates

Cash-Out Refinance

Refinance your mortgage and pull out equity for ADU construction.

Call our financing partners for current rates

Construction Loan

Short-term financing during build, converts to permanent mortgage.

Construction-to-Perm available

Grants & Tax Incentives

Free money and tax benefits you shouldn't miss

FEDERAL
30% Credit

Residential Clean Energy Credit (IRC §25D)

  • Covers certain clean energy systems (e.g., solar, batteries, geothermal)
  • Percentage-based credit against federal tax liability
  • Not a grant
  • Not guaranteed
  • Eligibility varies by taxpayer and project structure
FEDERAL
Up to $3,200

Energy Efficient Home Credit

Tax credits for heat pumps, insulation, windows, and efficient HVAC in your ADU.

  • • Heat pumps: Up to $2,000
  • • Insulation: Up to $1,200
  • • Windows/doors: Up to $600
LOCAL
Varies

Municipal ADU Incentives

Some towns offer permit fee waivers, density bonuses, or development grants for ADUs.

Check Your Municipality

Special Circumstance Programs

Targeted programs for specific homeowner groups

Veterans

VA loans, SAH grants, and special programs for service members.

Learn More →

Seniors (62+)

Reverse mortgage options and age-in-place programs.

Learn More →

First-Time Buyers

Buy a home with ADU potential using special first-time buyer programs.

Learn More →

Income-Qualified

Subsidized rates and down payment assistance programs.

Learn More →
100% Free

Unlock Your Financing Options

Discover which of the 50+ programs you may qualify for.

By submitting, you agree to our Terms of Service and Privacy Policy. We'll never sell your information.

Trust Badges
256-bit Encryption
No Credit Check
Results in 24hrs
For Lenders & Loan Officers
Become a VERIFIED ADU Financing Partner
The ADU Exchange connects homeowners with trusted, verified financing professionals who understand ADU-specific lending. Get listed in The Bank Vault, appear alongside our curated program directory, and be the lender homeowners turn to when they're ready to fund their build.
🏦
Secure Your Partnership Today
Limited spots per region
🎯
Reach Homeowners at the Right Moment
Homeowners on our platform are actively researching ADU financing. They're browsing loan programs, comparing options, and looking for a lender who gets it. Your listing meets them exactly when they're making that decision.
🏆
Stand Out as the ADU Expert
Most loan officers can't explain an FHA 203(k) vs. a construction-to-perm loan for ADUs. Verified partners are positioned as specialists — the go-to professional when a borrower's regular bank says "we don't do that."
🧰
Free Tools That Help You Close
Every partner gets access to our Objection Crusher, Pre-Qual Worksheet, and Financing Encyclopedia — interactive tools you can use with clients to match them to the right program, overcome hesitation, and move to application faster.
⚡
The ADU Market Is Moving — Don't Get Left on the Outside
Massachusetts now requires every municipality to allow ADUs by right. Homeowners across the state are exploring their options right now — and they're looking for financing partners who understand this space. The lenders who establish themselves early will own the referral relationships for years to come. Partner spots are limited per region. If you're not inside The Bank Vault, your competitor will be.
Apply Now →