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

  • Joel Singh
    We had a great experience working with Anchored Tiny Homes for our ADU. The entire team was very professional and responsive. The contractors did a great job and we are very happy with the end result. Highly recommend for your backyard ADU project.
  • Sharon Narain
    I would love to work with Anchored tiny homes again and again, just love how they built my ADU. This company is simply the best for all the housing needs.
  • Irene Sagaral
    I’m very excited our tiny home is almost done. Appreciate Colton for working with us. Martin who overseas the work done is very nice man and very responsive which we appreciate very much. Will try and update with photo once our backyard ADU is finally finish! It’s almost there!
  • Olya S
    Anchored Tiny Homes is a growing ADU construction company. Colton P. the CEO has good communication skills and easy to work with. I'm happy I was able to do business with him. Really recommend to work with him.
  • Anthony Scarpelli
    Quality product, owners on top of it when things came up. Price was very fair.
  • Diane Lawver
    We had Anchored Tiny Homes build us the 32' Jibe model as a registered RV. The team did a superlative job! The quality of the construction and dedication to customer service was the BEST we have experienced in a long time! They correctly interpreted our design requests, were responsive to our questions, invoiced exactly what they estimated at the beginning of the project, and were very engaged in coming up with best options when there were choices. They have assembled a team of professionals who made us very happy that we selected this business to help us create our vision. It turned out even better than we could have ever hoped.
  • Jackie Danielsson - Ables
    We had Anchored Tiny Homes build an ADU for my Mom in our yard. The minute I met Scott when he came to our home I knew this family had construction experience! The crews became like family, the results are beautiful! Happy to have Mom here and she is happy with her home.
  • Christine Blyumberg
    There little house are so cute! If I were single I'd definitely would want one of these homes for myself.
  • Sean Parsons
    Anchored Tiny Homes is the best! They are very responsive and super professional.
  • Nichole Wolfe
    We love Anchored Tiny Homes, we wanted an addition or an ADU for our current home in Folsom. We met with many different contractors, but Anchored Tiny Homes went above and beyond and most importantly they were use to working with small spaces. They knew how to maximize every area. Our new ADU is spacious and beautiful inside and out. Their crew is spectacular. From the their PM Shannon, who was responsive and efficient. To their carpenters Jared and his amazing crew! They have an incredible vision and talent. Doing any type of construction project is stressful and there are hiccups always, but we love the product and the staff and will refer everyone we know! Thank for our awesome unit! We love it!
  • Debra Ann
    I LOVE my custom Tinys!! Colton and his team have incredible heart, which is something I look for first when shopping for anything local. Their work is phenomenal and their response for anything missed or needing extra attention is above and beyond. They stand by their work!! Beautiful!
  • LaMarr Carr
    These guys have come up with one of the best ideas I have seen for addressing homelessness and the crisis in homes in California way to go guys great job🤯😁
  • Dominic Ino
    The tiny homes were beautiful and Clay was super nice and helpful!
  • Pamela Kizer
    I really love the tiny homes so much..
  • Kelly Taylor
    I can’t say enough about Anchored Tiny Homes! Colton and the whole Paulhus family are nothing short of amazing, and their desire to provide a unique solution to the housing crisis in California is inspiring. Their homes are absolutely beautiful, and you can see the attention to detail in everything they do. Highly recommend!!
  • Karsten Kaczmar
    Absolutely loved our tour. We are planning on buying a tiny, but needed some help really mailing down exactly what we needed. We toured all sorts of sizes and shapes, and Clay walked us through everything that we were thinking about. We left with a clear idea if what we need, and were really impressed with the craftsmanship of the units. We will almost certainly be building with them soon.
  • jon Waldie
    Went to see their work product and was duly impressed. Great service, beautiful tiny home options. Reccomend you make an appointment, you wont be disappointed
  • zach donati
    Best tiny home place they did great on our tiny home we are so happy they made it for us . Everything is perfect with it and we couldn’t be happier !!!
  • Zach Donati
    They made us a awesome tiny home and made it just the way we had in the design any problems we had they fixed and address this company is very honest and hard working . They make the best tiny homes the quality is only the best . If I could give a trillion stars I would Thankyou colton and crew for the best tiny home ever !!!!
  • TruthxArmy
    Great customer service. Knowledgeable employees. Surprisingly spacious homes.