ADU financing
Most Wasatch Front homeowners are sitting on equity, plus an empty yard. ADU financing turns one into the other. Your lender gets the component build-up, not 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.
| Build price | Quoted from the component build-up |
| Typical Wasatch Front rent, 2 bed / 2 bath | $1,400 / mo |
The payment is worked from that quote, your rate and your term. A HELOC is usually interest-only during the draw. Land, site work, the front door, taxes and insurance are not in the build-up. Permits are. Rent is an average, not a guarantee. This is not financial advice. Match a plan to your lot →
A construction lender underwrites against a budget. A range makes the lender pad the loan. Arena's quote is the component build-up, so the loan matches the build.
Give you the component build-up, 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. The loan is sized to the quoted build-up, not to a guess.
Often the rent covers a big share of the payment. The payment is worked from the quoted build-up, your rate and your term — not from a price per foot. A two-bedroom on the Wasatch Front rents for roughly $1,400. Your equity changes the shape.
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. The component build-up is the number your lender works from. We can introduce Utah lenders who do ADU projects. We do not give financial advice.
Enter your address. We'll confirm the plan, the component build-up, and whether the October 1 law applies to your lot.