Home / HELOC / The ADU does not count as value until it is real and legal.
Updated September 2026
HELOC guide
The ADU does not count as value until it is real and legal.
A HELOC can fund an addition or an ADU, but the line is sized on the house today. The rent you hope to get from the new unit does not raise today's DSCR or today's value. Permits, zoning, and the HOA can kill the project after the money is in hand, so check those before you draw. Change orders need room in the line. If the property is a rental and the ADU is how you will qualify a new loan later, that later loan is DSCR, after the unit exists. Do not blend the two timelines.
Sending a file is not an approval and not a credit pull. We text the same business day. We do not call. If we can structure it, we name the door. If we cannot, we say so.
The screen
| Before you draw | Confirm |
|---|---|
| Zoning and permits | The unit is allowed |
| Budget | Bid plus a cushion for changes |
| Value | As-is, not after the build |
| Future rent | A later DSCR file, not this HELOC |
What we fund
- Permitted ADU plans
- An addition with a contractor bid
- Owners who separated today's line from tomorrow's rental loan
What we still need. Short list.
- The first mortgage balance, rate, and whether it can stay.
- A value we can support, and the cash you actually want.
- The property state. HELOC is only GA, FL, TN, AL, NC, and SC.
- Income path: full doc, bank statements, or rent on a DSCR HELOC.
Questions
Can the future ADU rent qualify me now?
No. Rent we cannot document does not qualify a loan.
What if the HOA bans ADUs?
Then do not borrow to build one. The lien will still be there.
Is this a construction loan?
No. A HELOC does not fund draws against inspections the way a construction loan does. You manage the builder.
Related
These are the guidelines we screen. They are not a promise that your file hits the maximum. Credit-event seasoning, occupancy, and property condition still have to be confirmed. Not a commitment to lend. We text. We do not call.