Explore home-equity, construction, renovation, state-backed and special-purpose financing pathways, then connect with professionals who understand how ADU projects actually move from plans to keys.
One advisor for your entire ADU journey. The Biss ADU Project Roadmap™ tells you what to do, in what order, and with which professionals, from "Can I build an ADU?" to "Here are the keys."
SPONSORED · Biss ADU Solutions is founded by Matthew Bissonnette, founder of The ADU Exchange. Affiliated companies. You are never required to use any Ecosystem provider. Full disclosure at bissadusolutions.com.The right financing structure depends on whether you already own the home, how much equity you have, the type of ADU you are building, the stage of design and permitting, and how construction funds need to be released.
Compare HELOCs, home-equity loans and cash-out refinance strategies.
I need to finance the buildExplore construction-to-permanent and renovation-mortgage structures.
I want state-backed optionsStart with official resources across all six New England states, then compare participating lenders and program rules.
My situation is differentReview FHA, VA, first-time buyer, aging-in-place and income-qualified pathways.
Dedicated statewide ADU construction financing: up to $250,000 total for detached ADUs and up to $150,000 total for attached ADUs through an amortizing loan plus 0% deferred match. Plans and permits must be ready.
MassHousing ADULP →ADU-specific purchase/refinance pathway for attached and interior ADUs. Detached ADUs are not financed through this RIHousing product.
RIHousing ADU financing →CHFA offers FHA 203(k) Limited/Standard and conventional renovation mortgages for eligible homebuyers. CHFA does not label this as an ADU-specific program, so confirm your proposed ADU scope with a participating lender.
CHFA renovation programs →New Hampshire Housing's 2026 Homeowner ADU Guide includes an appendix of banks and credit unions offering ADU-oriented second mortgages, equity-construction loans and home-equity products.
NH Homeowner ADU Guide →No dedicated statewide MaineHousing ADU construction loan was identified in the current official resources reviewed. Eligible purchasers can explore MaineHousing's Purchase Plus Improvement option, while existing owners should compare local construction/equity products.
MaineHousing homebuyer resources →Vermont's VHIP 2.0 can support creation of an ADU on an owner-occupied property with forgivable financing up to $50,000 per ADU, generally requiring a 20% match and affordability/rental commitments.
VHIP 2.0 →
From construction & renovation loans to HELOCs, home-equity loans & cash-out refinancing, John Alexopoulos and radius help New England homeowners finance the ADU that keeps family close — since 1999.
ADU Financing, Built Around Your Project
John Alexopoulos, Loan Officer · NMLS #252572 · Licensed in Massachusetts. Employed by radius financial group inc., Corp NMLS #1846 — MA Lender/Broker License #MC1846. 600 Longwater Drive, Suite 107, Norwell, MA 02061. Verify licensing at nmlsconsumeraccess.org. State licenses: radiusgrp.com/licenses.
Loan programs may change at any time with or without notice. Information deemed reliable but not guaranteed. All loans are subject to income verification, credit approval, and property appraisal. This is not a commitment to lend. Rates and terms are not advertised here and depend on individual qualification — contact John Alexopoulos for current options. Not all applicants will qualify.
This advertisement is not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this advertisement.
ADVERTISEMENT — Paid partner placement. The ADU Exchange LLC is not a lender, mortgage broker, or financial institution; does not originate, broker, or service loans; and does not endorse, guarantee, or set the terms of any financing program. All lending services are provided solely by radius financial group inc. © radius financial group inc.® is an Equal Housing Lender. All Rights Reserved.
A lender can give you a better answer when the project itself is defined. You do not need every final detail, but you should be able to explain what you want to build, what stage you are in and how much you expect the project to cost.
Browse federal, Massachusetts, Rhode Island, home-equity and special-purpose financing pathways. Availability and eligibility vary by program, lender, borrower and property.
Government-backed financing with competitive rates
Finance your ADU construction as part of your home purchase or refinance. Includes renovation costs in one loan.
Veterans and active military can finance ADU construction with no down payment and no PMI required.
Conventional loan option for ADU construction. Finance up to 75% of the "as-completed" value.
Similar to HomeStyle with flexible renovation financing including ADU construction projects.
Zero-down financing for eligible rural and suburban areas. Many MA/RI towns qualify!
Fannie Mae now allows ADU rental income to count toward mortgage qualification. Use projected rent from your ADU to help qualify for a purchase or refinance.
Effective March 31, 2026, Fannie Mae expands eligibility for properties with ADUs, including manufactured homes with ADUs and multi-unit properties.
Government-insured loans for home improvements. No equity required for loans up to $25,000.
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Locally owned. Complete solar + battery systems, engineered for your ADU.
The vetted Master GC for Merrimack Valley. Plans, permits, framing and finish from one licensed team, selected and verified by The ADU Exchange so you never start with a random contractor.
Homeowners reading about federal ADU programs are actively searching for a lender. Get in front of motivated borrowers at the exact moment they need you.
State programs are not uniform. Massachusetts and Vermont now have especially ADU-specific state support; Rhode Island has an ADU-focused 203(k) pathway; New Hampshire publishes a lender guide; Connecticut and Maine currently require more use of broader renovation, homebuyer or private-lender products.
MassHousing ADULP is a dedicated construction-to-permanent second-mortgage program for income-eligible owner-occupants with plans and permits ready. Total financing can reach $250k detached / $150k attached through an amortizing loan plus 0% deferred match.
RIHousing FHA 203(k) can finance purchase/refinance plus an attached or interior ADU. The program does not finance detached ADUs and requires program education, a qualified consultant and licensed contractor.
CHFA Renovation Loan Programs include FHA 203(k) Limited/Standard and conventional renovation financing for eligible purchasers. CHFA's published materials are not ADU-specific, so ADU eligibility should be confirmed with a participating renovation lender.
New Hampshire Housing's 2026 Homeowner ADU Guide includes a lender appendix naming financial institutions with ADU-oriented second mortgages, equity-construction loans and home-equity products. Terms vary by lender.
MaineHousing currently publishes homebuyer and improvement resources rather than a dedicated statewide ADU construction loan. Its Purchase Plus Improvement option may help eligible purchasers finance certain improvements; existing homeowners should also compare local bank/credit-union construction and equity products.
VHIP 2.0 supports creation of ADUs on owner-occupied properties with forgivable financing up to $50,000 per ADU. A 20% match applies, and affordability/rental commitments are part of the program structure.
State-sponsored financing and incentives for MA homeowners
MassHousing's ADULP combines a 20-year amortizing second mortgage with additional 0% deferred matching financing. Homeowners must have plans, permits and other pre-development materials ready before applying.
0% interest financing for energy-efficient ADU construction. Combine with insulation and HVAC upgrades.
Some MA municipalities offer CPA funds for affordable ADU development. Check your town's program.
$10M over 2 years from the Governor's Capital Investment Plan. Technical assistance, predevelopment support, and financial help for homeowners navigating ADU construction.
Free, ready-to-use ADU floor plans coming late April 2026. Winning designs from the statewide challenge will be publicly available, saving homeowners thousands in design costs.
MA homeowners exploring state ADU programs need a local lending partner they can trust. This premium placement is reserved for one qualified lender in your region.
State-sponsored financing and incentives for RI homeowners
Purchase or refinance financing that can include an attached or interior ADU. RIHousing requires its 203(k) education class, an FHA-approved RI 203(k) consultant, and an RI-licensed and insured contractor.
0% financing for energy efficiency improvements. Perfect for building an energy-efficient ADU.
Various tax credit programs for energy efficiency and housing development in Rhode Island.
Every homeowner on this page is comparing financing options right now. Banks listed in The Bank Vault get direct exposure to qualified, motivated ADU borrowers across New England.
Get Listed TodayLeverage your home equity or secure construction financing
Home Equity Line of Credit. Draw funds as needed during construction.
Fixed-rate lump sum based on your home's equity. Predictable payments.
Refinance your mortgage and pull out equity for ADU construction.
Short-term financing during build, converts to permanent mortgage.
Reach homeowners comparing construction-to-perm loans for new ADU builds
Reserve This Placement →Top placement with expanded listing, rate display, and priority lead routing
Reserve This Placement →Target homeowners tapping home equity to fund their ADU projects
Reserve This Placement →Free money and tax benefits you shouldn't miss
Federal heat pump, insulation, and window credits ended for property placed in service after Dec 31, 2025. Mass Save HEAT Loan & rebates are now the primary path forward.
Some towns offer permit fee waivers, density bonuses, or development grants for ADUs.
Check Your MunicipalityTargeted programs for specific homeowner groups
Buy a home with ADU potential using special first-time buyer programs.
Learn More →Subsidized rates, down payment assistance, and the new MassHousing ADU Loan Program (income limits at 135% AMI).
Learn More →What's changed and what's now active across federal, MA, and RI programs as of 2026.
The Affordable Homes Act took effect Feb 2, 2025, every single-family zone in MA now allows ADUs by-right. Over 1,200 ADU permits issued statewide in the first year.
The One Big Beautiful Bill ended IRC §25D (30% solar) and §25C (heat pumps, insulation, windows) for systems placed in service after Dec 31, 2025. Solar leases & PPAs still qualify under §48E through 2027.
Desktop Underwriter now automatically counts ADU rental income (capped at 30% of total qualifying income) on one-unit primary residences for purchase & limited cash-out refis.
First-of-its-kind state ADU financing, second mortgages up to $250K (detached) or $150K (attached) at 5.25% fixed for 20 years. Income limits at 135% AMI. Live since March 17, 2026.
Governor Healey announced 8 winning ADU designs on May 1, 2026 from over 100 submissions. Free, code-compliant plans publishing on mass.gov, could save homeowners thousands in design costs.
All 39 RI municipalities must allow ADUs by-right (up to 900 sf for 1-bedroom, 1,200 sf for 2-bedroom). RIHousing offers FHA 203(k) financing for attached and interior ADUs, including refinance.
Every statistic is sourced and every legal claim traces to statute or agency guidance. Nothing here is legal, tax, or financial advice.
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New England ADU news, rule changes, financing, permit intelligence and trusted professionals, plus a recipe, seasonal living tips and adoptable pets worth meeting.
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