Flexible ADU Financing Options
Secure Financing for Your Dream ADU
Explore easy, flexible financing options that make ADU construction affordable and achievable for your budget.
Immediate Approval
Quickly see your financing options.
Flexible Terms
Choose options that suit your budget.
Easy Payments
Manageable Installments for financial ease.
Financing made easy for your tiny home or ADU
At Tiny Homes of Iowa, LLC, we understand that financing a new construction can be a daunting task. That’s why we’ve tailored a variety of financing options to ease the burden, allowing you to focus on the excitement of building your new ADU. From traditional loans to innovative funding solutions, we guide you through the financing process, ensuring you find the option that best fits your financial situation.
“Looking for a solution for your aging parents, or loved ones in need of care? Tiny Homes of Iowa can provide the perfect ADU. The process will be clear, simple, and empathetic. May your parents live comfortably nearby, giving you peace of mind!”
Financing Options
Home Equity Line of Credit (HELOC)
In the current economic climate, a Home Equity Line Of Credit (HELOC) is the most common financing option that our current customers are using. This is a line of credit taken out based on the equity you have and broken into two pay periods, a draw period, and a payback period, and you are only charged interest on the amount of the loan that you use which you can draw from to pay for your project during a specific period, typically around 10 years.
The payments on this type of loan still come in far lower than what you can often rent it out for or the cost of housing an aging parent in an apartment or assisted living facility making this an incredibly affordable option!
The Tiny Homes Of Iowa ADU Bridge Loan
We’ve developed a loan specifically for those that just don’t quite have enough equity in their home without the new value of the ADU being put on.
With this option, you can have the money for your ADU lent to you upfront and once the unit is built you then pay off this loan using either a cash-out refinance or HELOC based on the NEW value of your property! And to make it even better, once you get the loan rates are locked in so it won’t change on you and there are no payments during the duration of the loan!
Cash-Out Refinance
A cash-out refinance is very similar to a HELOC in that it is based on your current equity, but rather than being secondary to your mortgage, a cash-out refinancing replaces your current mortgage and you can use the difference that goes to you in cash as a way to pay for your ADU.
This is a great option if you have a lot of equity in your home and if your current interest rate is similar to or higher than the current going rate!
Renovation or Construction Loan
Unlike loans based on existing equity, a renovation/construction loan does not use your home as collateral so if you are wanting to avoid that or don’t have much equity then this may be a great option.
However, this does often have more strict credit and income requirements as well as a higher interest rate typically, making the monthly payment often higher than with other options.
Alternative Options
Beyond these traditional loans there are still a few other options that you can look into, including:
- A personal loan or line of credit
- Use of retirement accounts or personal investment
- Sale of another home or property
- Borrowing from family and friends
- Private money loans
- And more
Ultimately there are most likely many more options than you would realize as well as dozens of different lenders with different terms to help you get approved for the payments that work best for you and your goals!
Three Steps To Happy Living
Step 1: Schedule a Call
Let’s talk about your dream tiny home or ADU and how we can make it a reality.
Step 2: Design & Approval
Collaborate on a custom design that meets your needs and get all necessary approvals.
Step 3: Enjoy Your New Space
Move into your new tiny home or ADU and start living your best life.
Build Your Dream Tiny Home or ADU
Many people want close, convenient living for family or to earn rental income but struggle with the maze of building regulations, which makes them feel stressed out. At Tiny Homes of Iowa, we help them build the perfect tiny home or ADU, so they can stop worrying and finally enjoy financial and familial peace.
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At Tiny Homes of Iowa, LLC, we know that you want to be an empowered homeowner with smart, custom living solutions. To achieve this, you need a practical and close living solution that enhances your family’s life or your income. The problem is navigating zoning laws and managing the construction process is complex and daunting, which makes you feel overwhelmed and frustrated.
We believe it’s just plain wrong that individuals desiring to enhance their living situation face such obstacles and red tape. We understand the struggle with navigating these challenges, which is why we provide a turnkey, white glove experience in building tiny homes and ADUs.
Here’s how we do it:
- Schedule a Call:
We start by understanding your needs and how an ADU can fulfill them. - Customized ADU Design:
We tailor the design to fit your property and meet your specific needs, ensuring every detail is perfect. - Achieve Your Ideal Living Solution:
Enjoy the completion of your tiny home or ADU, enhancing your lifestyle or financial goals.
So, schedule a call with us. And in the meantime, check out our guide on ADU benefits. So you can stop feeling overwhelmed by construction challenges and instead enjoy the success of having a perfect tiny home or ADU.