HELOC vs Construction Loans for Your Granny Flat
Construction

HELOC vs Construction Loans for Your Granny Flat

Planning a granny flat for 2025 requires smart financing amid rising costs. This guide compares HELOCs and construction loans, detailing how each works, associated costs, timelines, and ideal applications to help you fund your accessory dwelling unit effectively, prevent delays, and enhance long-term property value.

By Stacy CadriNovember 24, 2025
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HELOCs vs Construction Loans for Granny Flats

HELOCs vs Construction Loans for Granny Flats

Constructing a granny flat in 2025 offers opportunities to increase property value and generate income, yet selecting appropriate financing proves essential. This analysis examines home equity lines of credit and ADU construction loans, including expenses, durations, advantages, drawbacks, and qualification criteria, to assist homeowners in determining the most suitable option based on equity, objectives, and project scale prior to initiating construction.

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