What are the best ways to finance an ADU in Seattle?
I have decent equity but not $400k cash. What loan products actually work for ADUs?
Five options work in 2026: (1) HELOC — fastest if you have 30%+ equity, but variable rate. (2) Cash-out refinance — locks in the rate but resets your mortgage clock. (3) Renovation loan (FHA 203k or Fannie Mae HomeStyle) — lets you finance the full ADU based on after-completion value. (4) Construction-to-permanent loan — best for ground-up DADUs, single closing. (5) Specialty ADU lenders (RenoFi, Aven) — value the post-build appraisal, often the highest borrowable amount. Talk to two lenders before picking.
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