ADU financing · Florida · 2026
How to finance an ADU in Florida.
A Sidesuite is $99,999 for the finished home, plus installation quoted for your lot. That fits inside most home-financing products on the market — and several lenders now write loans specifically against ADU future rental income. Here are the five paths most Florida homeowners actually use, with what each one costs and who it's right for.
Compare your financing options.
| Path | Best for | Typical rate (2026) | Needs equity? |
|---|---|---|---|
| HELOC | Homeowners with 20%+ equity | 7.5% – 9.5% | Yes |
| Cash-out refinance | Locked into a low old rate? Skip this. | 6.75% – 7.75% | Yes |
| Construction-to-perm loan | One loan that funds build then converts | 7.25% – 8.5% | Some |
| ADU-specific (RenoFi, HFS, others) | Low equity, strong income | 8.5% – 11% | No |
| FHA 203(k) | Lower credit; primary residence | 6.5% – 8% | Some |
Which one is right for you.
1. HELOC (Home Equity Line of Credit)
The most common ADU funding source. A HELOC is a revolving credit line secured against your home's equity — you draw what you need, pay interest only on the drawn amount. For a $99,999 Sidesuite plus installation (estimated around $30,000, quoted for your lot), a $150,000 HELOC covers the home and installation, with about $20,000 left toward permits, site prep and utility tie-ins, which vary by lot.
Florida-active HELOC lenders: Figure, your existing bank, regional credit unions. Florida credit unions to look at: Suncoast, VyStar, GTE Financial.
2. Cash-out refinance
Replace your mortgage with a larger one and pocket the difference. Only sensible if your current rate is at or above today's market — if you locked a 3% mortgage in 2021, do not touch it. Use a HELOC or a second-position loan instead.
3. Construction-to-perm loan
A single loan that funds construction (interest-only during build) and converts to a standard mortgage at completion. One closing instead of two. Good for homeowners without enough equity for a HELOC but with strong income. Florida options: TD Bank, Bank of America, and many regional banks.
4. ADU-specific lenders
The newest category. Lenders like RenoFi and HFS Financial underwrite against the property's post-ADU appraised value — meaning you can borrow against equity you don't have yet. Rates are higher than a HELOC, but it's the only path that works if you bought your house recently and haven't built equity yet.
5. FHA 203(k) Rehabilitation Loan
A federal program that bundles a primary mortgage and renovation costs into one loan. ADUs qualify in many jurisdictions if they meet HUD's accessory unit rules. Best for buyers purchasing a property and wanting to add an ADU as part of the deal. HUD program details.
What a Sidesuite costs to finance per month.
Say you finance about $130,000 for the home and installation, before lot-specific costs (permits, site prep, utility tie-ins). That's the $99,999 home plus the ~$30,000 installation estimate; your quote depends on your lot. At a HELOC's typical 8.5% rate:
| Loan amount | Rate | Term | Monthly payment | Typical rent | Rent minus payment |
|---|---|---|---|---|---|
| $130,000 | 8.5% | 15 yr | $1,280 | $1,400 | +$120/mo |
| $130,000 | 8.5% | 20 yr | $1,128 | $1,400 | +$272/mo |
| $130,000 | 8.5% | 30 yr | $1,000 | $1,400 | +$400/mo |
One more dollar lever: workforce-housing fee waivers.
Some Florida cities and counties waive or reduce impact fees — including water and sewer connection fees — for housing rented at affordable or workforce-housing rates. Programs are jurisdiction-specific (Miami-Dade, Hillsborough, Palm Beach, and Orange County all run them) but the practical effect is the same: if you're financing a Sidesuite and willing to commit the unit to workforce-tier rents (as your city or county defines them), some of those fees can come off what you borrow. Worth a 10-minute call to your city or county housing office before you finalize the financing package. More detail on the ADU cost page.
Common financing questions.
Do I need a down payment for an ADU?
If you use a HELOC or cash-out refi, no — the loan is secured by your home equity. If you use an ADU-specific or construction-to-perm loan, expect 10–20% down or "skin in the game" of similar amount.
Can I count future ADU rent as income for the loan?
With ADU-specific lenders, yes — that's their entire pitch. With traditional banks, sometimes: Fannie Mae's HomeStyle Renovation loan allows projected rental income to count toward qualifying, with a market rent appraisal.
What credit score do I need?
HELOC: typically 680+ for the best rates, 640+ to qualify. FHA 203(k): 580+ with a 3.5% down payment. ADU-specific lenders: usually 660+.
Does Sidesuite offer financing?
Not yet. Sidesuite's lender partners are opening soon. In the meantime, the paths above all work for a Sidesuite at $99,999 plus installation.
Reserve your spot while you line up financing.
Reserving is $999, fully refundable, and charged only after your address passes. Not sure about your lot yet? Check My Lot answers instantly.