Financing Your Abodu
Top ways to finance an ADU:
Cash out refinance
An option for homeowners with significant equity in their property
Another option for homeowners with significant equity in their property
Commonly used by homeowners planning to rent out their Abodu, but also a potential fit for owner-users
For those looking to invest in their property without using financing
No Payment Equity Loan
Investor request no monthly payment for 10 years, and small equity share for repayment in 10 years
Reverse mortgage for seniors, with no monthly mortgage payment for borrowers over 62 yrs old.
For the first 12 months, the Home Equity Line of Credit (HELOC) promotional rate is fixed at 0.99% APR. However, after the promotional period, the rate will be subject to change based on the Wall Street Journal Prime “Prime” rate published on the last business day of the month, according to the lender's guidelines. Please note that the rate and terms are subject to change without notice, and approval is based on the lender's underwriting criteria. Abodu will provide a refund at the close of escrow to cover the difference between the 3.99% APR interest rate payment and the 0.99% APR interest rate payment. For example, if you have a Home Equity Line of Credit with a balance of $10,000 and a 3.99% APR for the first 12 billing cycles, you will need to make 12 interest-only payments of $33.25. However, with our 0.99% APR interest rate, the interest-only payment is only $8.25 per $10,000. Therefore, we will credit back $25 per $10,000 at the close of escrow to cover the buydown. Offer valid to new customers starting Feb. 2023 and can expire anytime. For more information, please contact us.*
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