Accessory Dwelling Units (ADUs) are a great way for homeowners to create additional income for expenses associated with owning a home. They also provide a cost-effective housing option for residents of our region.
What is an ADU?
An ADU – sometimes referred to as an in-law suite, guest apartment or secondary unit – is an independent residential unit on the property of a main home (either connected to, within or separate from the main unit). ADUs may offer housing to extended family members, caregivers or to external tenants for rent. Please consult with the town your home is located in for permitting requirements.
Finance the Creation of an ADU with Cape Cod 5
Cape Cod 5 offers a home equity loan and a mortgage program to support the creation of ADUs to help meet the needs of homeowners, while also addressing the demand for diverse local housing options. Click below to learn more and view details of each option.
ADU Home Equity Loan
The Details:
Property must be Borrower’s primary residence located within the Bank’s lending market area
ADU must be installed on the property securing the loan, subject property must be a 1-4 family residential property
Collateral type: 1st, 2nd or 3rd mortgage on subject property
Borrower must provide approval from the Town authorizing the construction of an ADU
Borrower must provide a copy of their accepted contract/agreement for the construction of the Affordable Housing Accessory Dwelling Unit from a licensed contractor at the time of application (self-contractor jobs not allowed)
Funds will be fully disbursed in the form of two checks once any right of rescission has elapsed. Each check issued will be for 50% of the loan amount, one check will be payable to the Borrower(s) and the Contractor and the second check will be payable to the Borrower(s) directly.
Ineligible Properties: Condos, cooperatives, Second Homes, commercial mixed use, investment / rental properties, titles held in LLCs or Irrevocable Trusts, or Life Estates
Please visit our Loan Rates page for loan amounts and terms.
Interested in an ADU home equity loan? Apply online now.
ADU Mortgage Program
The Details:
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Maximum loan amount of $1 Million
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ADU must be installed on the property securing the loan, subject property must be a 1-4 family primary residence
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Collateral type: 1st mortgage on subject property
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Borrower must provide a copy of their accepted contract/agreement for the construction of the Affordable Housing Accessory Dwelling Unit from a licensed contractor at the time of application (self-contractor jobs not allowed)
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Borrower may use up to 75% of documented, expected rental income to qualify
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Ineligible Properties: Condos, cooperatives, Second Homes, commercial mixed use, investment / rental properties, titles held in LLCs or Irrevocable Trusts, or Life Estates
Ask us about repayment terms and additional information
Interested in our ADU mortgage program?
Contact a Cape Cod 5 Mortgage Loan Officer today.
