Financing the construction of an ADU in CO

I’ve started working on building an ADU in the backyard and have a plan, approximate cost ($180k-225k depending on how much work I do myself) and have started talking to the money people. My current mortgage is $90k and the house is worth between $220k and 260, probably at the higher end. The banker I’ve been speaking with said I can do a HELOC, possibly a consumer construction loan or commercial construction loan (investment property). I’m confused. Could I do a second construction mortgage? A HELOC would be plenty to start the project or do a downpayment but not enough to fully finance the structure.

I guess what’s the best way to do this with as little cash possible?

Credit is good, I do have cash and investments but I’d rather not have to use that with the way rates are. Thanks!

submitted by /u/MrDywel
[link] [comments]

I’ve started working on building an ADU in the backyard and have a plan, approximate cost ($180k-225k depending on how much work I do myself) and have started talking to the money people. My current mortgage is $90k and the house is worth between $220k and 260, probably at the higher end. The banker I’ve been speaking with said I can do a HELOC, possibly a consumer construction loan or commercial construction loan (investment property). I’m confused. Could I do a second construction mortgage? A HELOC would be plenty to start the project or do a downpayment but not enough to fully finance the structure. I guess what’s the best way to do this with as little cash possible? Credit is good, I do have cash and investments but I’d rather not have to use that with the way rates are. Thanks! submitted by /u/MrDywel [link] [comments]

<a href="Read More“>View Full Article

Need More Commercial Real Estate Leads?SAVE 40% this month!

Our commercial valuation calculator was created to evaluate commercial real estate. In 6 quick steps you will know your NOI, CAP RATE, and IRR.

Now you can get your own branded version of our calculator!