Financing Your Casita

How to Fund
Your Build.

Most homeowners finance a casita with one of three options — a HELOC, a cash-out refinance, or a construction loan. Here's how each works and how to figure out which is right for you.

Your Three Options

Compare financing approaches

Most Common
HELOC

Borrow against your existing home equity. Draw funds as needed during construction — you only pay interest on what you've used.

✓ Keep your current rate
✓ Draw as needed
✓ Interest-only during build
✓ Quick if you have equity
Good if Rates Dropped
Cash-Out Refinance

Refinance your mortgage and pull out equity in a lump sum. One combined payment for your home and the casita build.

✓ Single monthly payment
✓ May lower overall rate
✓ Lump sum upfront
✓ Resets mortgage term
Low-Equity Option
Construction Loan

Short-term loan designed for building — converts to a permanent mortgage at completion.

✓ Designed for construction
✓ Converts to long-term mortgage
✓ Doesn't require high equity
✓ Higher initial rate

Preferred Lenders

We connect you with lenders who specialize in ADU financing.

Most conventional lenders aren't set up for ADU construction. We work with local lenders who know the process and move efficiently once your permit is approved.

When you request a free consultation, we'll discuss your financing situation and connect you with the right lender for your needs.

Request a Lender Introduction →

Build Costs

What does a casita cost to finance?

Model Size Starting Upper Range
The Studio400 SF$133,000$160,000
The Casita576 SF$163,000$195,000
The Retreat720 SF$192,000$230,000
The Hacienda980 SF$230,000$280,000
The Sonoran1,400 SF$325,000$395,000

Prices are planning estimates. Final cost confirmed after site evaluation. Includes drawings, permits, construction, and standard finishes.

Ready to take the next step?

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