A $85,000 ADU is small enough to fit inside almost every home-financing product in 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.
| 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 |
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 $85,000 Tooly plus $20,000–$40,000 in site work and permits, a $150,000 HELOC covers the whole project.
Florida-active HELOC lenders: Figure, your existing bank, regional credit unions. Florida credit unions to look at: Suncoast, VyStar, GTE Financial.
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.
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.
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.
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.
Assuming you finance the full $105,000 all-in (unit + site work + permits) at a HELOC's typical 8.5% rate over 15 years:
| Loan amount | Rate | Term | Monthly payment | Typical rent | Cash flow |
|---|---|---|---|---|---|
| $105,000 | 8.5% | 15 yr | $1,034 | $1,400 | +$366/mo |
| $105,000 | 8.5% | 20 yr | $911 | $1,400 | +$489/mo |
| $105,000 | 8.5% | 30 yr | $807 | $1,400 | +$593/mo |
Under Florida Statute 166.04151 and the Live Local Act framework, local governments are authorized to 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 Tooly and willing to commit the unit to workforce-tier rents (typically 80–120% AMI), a chunk of your all-in cost can come off the loan. 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.
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.
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.
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+.
Not currently. We're talking to a handful of lenders about a Tooly-specific financing product. In the meantime, the paths above all work for a $85,000 Tooly build.
Tell us your situation in the reservation form and we'll point you to the lender that fits.
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