Financing an ADU in Arizona

An accessory dwelling unit — a casita, a garage conversion, a guest house — can add rental income or room for family without moving. The build is the easy part to picture. Paying for it is the part most people have questions about.

There is no single "ADU loan." Which route makes sense depends on how much equity you have, what the project costs, and what you want your payment to look like when it is finished. These are the paths worth understanding:

Cash-out refinance

Replace your current mortgage with a larger one and take the difference in cash. Often the choice when today's rate is close to the rate you already have.

Home equity options

Borrow against your equity while leaving your first mortgage alone — usually the better fit when you are holding a low rate you do not want to give up.

Renovation financing

Loan programs that underwrite to the home's value after the work is done rather than what it is worth today, which matters when the ADU is what creates the value.

Let's figure out which one fits

Send us your details and a Bloom loan advisor will look at your equity, your current rate, and the project budget, then walk you through the realistic options. No obligation.