ADU financing
Nobody has $128,625 in a drawer. But most Wasatch Front homeowners are sitting on more than that in equity, plus an empty yard. ADU financing is the mechanism that turns one into the other — and because Arena publishes a fixed price, your lender has a real number on day one instead of a guess.
A line of credit against your home. Draw as the build progresses, pay interest only on what you've used, usually variable rate. Fast to set up, and the payment can be small during construction.
Replace your mortgage with a larger one and take the difference in cash. One fixed payment. Makes less sense if you're giving up a low rate to do it.
Lends against the finished value of the property, not just today's. Some Utah lenders count projected ADU rent toward qualifying. Converts to a standard mortgage at completion.
| Fixed build price, The Lookout (735 sq ft) | $128,625 |
| Financed over 30 years at 7.0% (illustrative) | $856 / mo |
| Typical Wasatch Front rent, 2 bed / 2 bath | $1,400 / mo |
| Rent minus payment | +$544 / mo |
Payment = P × r ÷ (1 − (1 + r)−n) with r = 7.0% ÷ 12 and n = 360. A HELOC is usually interest-only during the draw, so the early months look different. Land, sitework, permits, taxes and insurance are not in this table. Rent is an average, not a guarantee. This is an estimate, not financial advice. Run it on your own lot →
A construction lender underwrites against a budget. When the builder's number is "somewhere between $150k and $350k depending", the lender pads it and you borrow more than you need. Arena's price is fixed before you apply — so the loan matches the build.
Give you the fixed number, the plan, and the build timeline in writing so your application is complete. Introduce Utah lenders who do ADU projects regularly. And be honest that we build houses — we don't give financial advice.
Questions
Yes. The common routes are a home equity line of credit (HELOC), a cash-out refinance, a renovation or construction loan, and for some owners a construction-to-permanent loan. Several Utah lenders will count projected ADU rent toward qualification. Arena can point you to lenders who do ADUs regularly.
Most HELOC lenders let you borrow up to 80–85% of your home's value minus what you owe. On a $600,000 Wasatch Front home with a $350,000 mortgage, that is roughly $130,000–$160,000 of room — about the price of The Lookout.
Often, yes. The Lookout at $128,625 financed over 30 years at 7.0% is about $856 a month; a two-bedroom on the Wasatch Front rents for roughly $1,400. Your rate, term and equity change the shape, which is why the estimator prints its assumptions.
Generally the new unit is assessed as an improvement, so yes, in proportion to the value it adds. The added value is also what a lender or buyer sees. Confirm with your county assessor.
No. Arena is a builder. We publish the price so your lender has a real number to work with, and we can introduce Utah lenders who do ADU projects — but we do not give financial advice.
Enter your address. We'll confirm the plan, the fixed price and whether the October 1 law applies to your lot.