The Bank
Vault
Every homeowner deserves financing options.
With 55+ programs available, we'll find the right path for your
ADU project.
Every yard deserves an ADU. From factory-built container homes to custom luxury builds & everything in between — there's a fit for every yard, every budget, and every family legacy. Find them all at The ADU Exchange.
MassHousing ADU Loan Program is NOW LIVE — Second mortgages up to $250K at 5.25% fixed rate. Apply Now →
How Would You Like to Finance Your ADU?
Choose your path based on your situation. We have options for every homeowner.
Tomorrow Starts NOW.
Factory-built & state-approved. Smart, sustainable Corten steel ADUs delivered in 8–12 weeks, not 6–12 months. Solar & battery standard.
All Your Financing Options
From federal programs to local grants, we've compiled every available option for Massachusetts and Rhode Island homeowners.
Federal Programs
Government-backed financing with competitive rates
FHA 203(k) Renovation Loan
Finance your ADU construction as part of your home purchase or refinance. Includes renovation costs in one loan.
- Credit scores from 580
- Up to $35,000 for Standard
- Unlimited for Full 203(k)
VA Renovation Loan
Veterans and active military can finance ADU construction with no down payment and no PMI required.
- No down payment required
- No PMI ever
- Competitive rates
HomeStyle Renovation
Conventional loan option for ADU construction. Finance up to 75% of the "as-completed" value.
- Up to 75% of future value
- 620+ credit score
- Single close option
CHOICERenovation
Similar to HomeStyle with flexible renovation financing including ADU construction projects.
- Resilience improvements eligible
- 620+ credit score
- Energy efficiency bonuses
USDA Rural Development
Zero-down financing for eligible rural and suburban areas. Many MA/RI towns qualify!
- No down payment
- Low mortgage insurance
- Income limits apply
ADU Rental Income for Qualifying
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.
- ADU rent counts toward qualifying
- Capped at 30% of total income
- DU 12.1 updated Q1 2026
- Purchase & limited cash-out refi
Expanded ADU Property Eligibility
Effective March 31, 2026, Fannie Mae expands eligibility for properties with ADUs — including manufactured homes with ADUs and multi-unit properties.
- Broader ADU definitions
- MH + ADU combos eligible
- Effective March 31, 2026
HUD Title 1 Property Improvement
Government-insured loans for home improvements. No equity required for loans up to $25,000.
- Up to $25k unsecured
- Up to $60k secured
- 20-year terms available
Fall River, MA
Power Your ADU From the Sun.
Locally owned. Complete solar + battery systems — engineered for your ADU.
Your Bank Could Be Right Here
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.
Massachusetts State Programs
State-sponsored financing and incentives for MA homeowners
MassHousing ADU Loan Program
Second mortgages for ADU construction — fixed-rate with deferred zero-percent matching funds to lower effective rates. Applications open statewide as of March 17, 2026.
- Up to $250,000 (detached)
- Up to $150,000 (attached)
- 5.25% fixed rate, 20-year term
- Income limit: 135% of area median
Mass Save HEAT Loan
0% interest financing for energy-efficient ADU construction. Combine with insulation and HVAC upgrades.
- 0% APR — 3, 5, or 7 yr terms (income-tiered)
- Up to $25,000
- Must include efficiency upgrades
Community Preservation Act (CPA)
Some MA municipalities offer CPA funds for affordable ADU development. Check your town's program.
- Grant funding available
- Town-specific programs
- Affordability requirements
MHP ADU Incentive Program
$10M over 2 years from the Governor's Capital Investment Plan. Technical assistance, predevelopment support, and financial help for homeowners navigating ADU construction.
- Predevelopment funding
- Technical assistance included
- Full launch spring 2026
MA ADU Design Challenge
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.
- $60K+ in prizes awarded
- Free downloadable plans
- Code-compliant designs
Massachusetts Lenders:
High DemandMA 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.
Rhode Island State Programs
State-sponsored financing and incentives for RI homeowners
RIHousing Home Repair
Low-interest loans for home repairs and improvements including ADU projects for income-qualifying households.
- Below-market rates
- Deferred payment options
- Income limits apply
Rhode Island Energy HEAT Loan
0% financing for energy efficiency improvements. Perfect for building an energy-efficient ADU.
- 0% APR financing
- Up to $25,000
- Must meet efficiency standards
RI Residential Tax Credits
Various tax credit programs for energy efficiency and housing development in Rhode Island.
- Solar investment credits
- Energy efficiency rebates
- Historic preservation credits
These Borrowers Are Looking for You
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 TodayTraditional Bank Financing
Leverage your home equity or secure construction financing
HELOC
Home Equity Line of Credit. Draw funds as needed during construction.
Home Equity Loan
Fixed-rate lump sum based on your home's equity. Predictable payments.
Cash-Out Refinance
Refinance your mortgage and pull out equity for ADU construction.
Construction Loan
Short-term financing during build, converts to permanent mortgage.
Construction Lender
Reach homeowners comparing construction-to-perm loans for new ADU builds
Reserve This Placement →Premium Featured
Top placement with expanded listing, rate display, and priority lead routing
Reserve This Placement →HELOC / Equity Lender
Target homeowners tapping home equity to fund their ADU projects
Reserve This Placement →Grants & Tax Incentives
Free money and tax benefits you shouldn't miss
Residential Clean Energy Credit (IRC §25D)
- 30% credit terminated for systems placed in service after Dec 31, 2025 (One Big Beautiful Bill)
- Unused credit from 2025 returns can still be carried forward indefinitely
- Solar leases & PPAs still qualify under §48E through 2027
- State & utility rebates remain available (Mass Save, RI Energy)
- Consult a tax professional for your specific situation
Energy Efficient Home Credit (§25C)
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.
- • Heat pumps: ended Dec 31, 2025
- • Insulation: ended Dec 31, 2025
- • Windows/doors: ended Dec 31, 2025
Municipal ADU Incentives
Some towns offer permit fee waivers, density bonuses, or development grants for ADUs.
Check Your MunicipalitySpecial Circumstance Programs
Targeted programs for specific homeowner groups
First-Time Buyers
Buy a home with ADU potential using special first-time buyer programs.
Learn More →Income-Qualified
Subsidized rates, down payment assistance, and the new MassHousing ADU Loan Program (income limits at 135% AMI).
Learn More →Regulation Updates & Alerts
What's changed and what's now active across federal, MA, and RI programs as of 2026.
MA ADU By-Right Law In Effect
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.
Federal Solar & Energy Credits Sunset
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.
Fannie Mae DU 12.1 — ADU Income Live
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.
MassHousing ADU Loan Program
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.
MA ADU Design Challenge Winners
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.
RI ADUs By-Right Statewide
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.