Anchored Tiny Homes financing options.
Anchored Tiny Homes offers a variety of franchising options.

Financing Options

There are more options than you may think!

As you get closer to deciding whether or not you would like to build an ADU on your property, one of the biggest questions that many homeowners have is “can I finance this? And if so, what are the options?” This is exactly where we can help!

Here are each of the main options available to you, but if you would like to quickly see what would be the best fit for you and get an idea of payments and terms, reach out today and our financing team can walk you through 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 Anchored 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!

Anchored Tiny Homes offers a variety of franchising options.

Financing Options

There are more options than you may think!

As you get closer to deciding whether or not you would like to build an ADU on your property, one of the biggest questions that many homeowners have is “can I finance this? And if so, what are the options?” This is exactly where we can help!

Here are each of the main options available to you, but if you would like to quickly see what would be the best fit for you and get an idea of payments and terms, reach out today and our financing team can walk you through 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 Anchored 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!

Contact us to learn more about financing options

Ready to See if You Qualify?

Are you ready to see what financing options you qualify for and what the payments would look like so that you can get an idea of what would be the best fit for you?

Request a FREE property analysis and estimate TODAY and we will be able to go over more details with you as well as connect you with our financing team once we have analyzed your property and given you a firm estimate at no cost. This way you can have complete clarity on what the cost is and how that would break down into your payments.

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What Our Customers Say About Us

  • Wendy “Wendizzle”
    We did a phone call and Rick was very knowledgeable and had screen sharing so I could see my options.
  • Blanca Gavina
    I’ve been working with Anchored Tiny home for almost 2 years. Roman Sandoval has been wonderful! His communication is amazing and has offered me exceptional customer service. He has answered all of my questions promptly and he is very thorough. I absolutely love my new ADU!
  • Bradley Jones
    Anchored Tiny Homes is the unquestionable leader in the building of accessory dwelling units across the United States. They will change the course of affordable housing in America.
  • Justin Swartsel
    Justin, David, and Dylan are people of the highest caliber and I would not hesitate for an instant to work with them.
  • Alyssa Scavetta
    We got a small 10x10 ADU built in our backyard to use as an office space for myself. When we first talked to Duran, we also wanted something that could double as a guest room. Duran worked with the best in the business to take this tiny ADU to the next level. We're talking vaulted ceilings, a doggie door in the side of the house, recessed lightning, nice modern wood floors, and plenty of light. Plus, I got to have stucco walls to match the exact paint color of our house, and roof shingles to match as well! Duran and Anchored Tiny Homes left no stone unturned. And they did it all in 2 months. I am so so pleased with the results of this project. I would highly recommend Anchored Tiny Homes to anyone in Central Texas looking for an affordable, custom, high quality ADU built on their land!
  • Sunny Lombardi
    I am kicking off an ADU build with ATH any day now…well down the path and will add to this initial review later. I did want to share what my experience has been to date with ATH. I was super fortunate to meet Lawrence Kao of ATH first. As a sales professional myself I can’t help but not only think about the product but also the salesperson style. Lawrence has been an easily accessible and responsive pro. He has been able to answer any question I have had with ease and has instilled the kind of trust that causes one to feel great to work with the business and person representing it. Can’t wait for next steps and am stoked the project kicked off with Mr. Kao!
  • Drew Hallberg
    Working with Justin and his team is always a pleasure. They are hardworking, knowledgeable, and ready to serve. I trust this team and know that they care about their product and the customer experience.
  • Brian Negri
    Lawrence Kao has been a colleague and mentor of mine. He is the consummate professional and a true expert in the ADU world. When considering an ADU, you want a good partner and that's what Lawrence brings to your project.
  • Cathy Buckland
    Jeremy is a stand up guy. Full of integrity. I would trust him with any project.
  • Kyra Daunt
    Such a great company ! You’ve come to the right place if you’re looking for a team that’s patient, and attentive to your ideas. Not a cookie cutter experience.
  • Alicia Smith
    Lawrence has been an incredible resource in assisting us in strategies in developing on our properties. His wealth of knowledge on ADUs specifically on the investment side is incredible. We look forward to partnering with Anchored Tiny Homes on our further investment endeavors.
  • Ian McVay
    Jeremy is honest, a strong communicator, and has attention for detail. You can count on him to get the job done well!
  • Amanda Viehman
    Definitely a team you can count on to get the job done!
  • Daniel Dourte
    These are people of integrity and excellence. Recommend!
  • Kathleen Ruston
    I had a great conversation with Jeremy. It’s clear that he knows what he’s doing. I would recommend his service to anyone looking for a tiny home!!
  • Susan Bultman
    It’s nice knowing that people who are helping you plan your dream tiny home for yourself or your in-laws or your teenager are individuals of character and integrity. Thank you.
  • Kyle DePriest
    Fantastic experience. Working with Justin and the team is an absolute pleasure. They are able to address all of my questions and concerns and are helping me construct exactly what I want. Can't recommend them enough!
  • Chelsea Wilkinson
    Jeremy is the best guy to have on your team when building something. He works hard & does whatever is needed to see the project through! Couldn’t recommend Anchored Tiny Homes enough!
  • AM Nest
    Justin is the epitome of reliability. He always follows through on his promises and has never let me down. It's rare to find someone you can trust without a second thought.
  • Douglas Haus
    Trust worthy, reliable friendly service from a team with great integrity!
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