Last Updated: February 25, 2025
Traditional mortgage and loan products are offered by major banks, credit unions, non-bank leaders and private lenders. To understand the differences between these industry players, here is a comprehensive overview. Personal lending products, residential and commercial mortgages offered by lenders are subject to their standard lending criteria. Conditions apply. For more information please contact the lenders directly.
A key decision is whether to work with a mortgage broker or directly with a lender. Mortgage brokers gather proposals from multiple banks and lenders to find the best deal for you. If you have an established relationship with a bank, they might offer you a better rate, so it’s the best place to start.
A lump sum loan secured by home equity, typically higher interest rates than first mortgages. Useful if the primary mortgage is locked in at a low rate.
Allows buyers to finance the purchase price + renovation costs in a single mortgage. Renovation funds are disbursed in stages as work progresses. Maximum loan-to-value (LTV up to 95%) for owner-occupied homes. Works best for properties needing ADU/multiplex conversion at purchase.
If the multiplex conversion is a commercial venture and operating as a rental business, you may qualify for business financing.
Loan for homeowners 55+ leveraging home equity. A reverse mortgage usually allows you to borrow up to 55% of the appraised value of your home.
Loan specifically for home improvements that are not secured by your property. They are quicker and easier to secure than more traditional loans and are based on your income qualifications and not property value/equity.
Unsecured revolving line of credit.
Flexible borrowing against home equity (up to 65% LTV). Best for smaller ADU projects where costs fluctuate over time.
Short-term loan to fund building projects. Usually, the lender will not fund the loan until you also have a building permit in hand.
Allows homeowners to access up to 80% of their home’s appraised value to finance ADU/multiplex conversions. Lower interest rates than HELOCs or private loans.
Financing Options
Disclaimer
Highline Beta does not endorse, validate, or take responsibility for the accuracy, interpretations, conclusions, or opinions expressed in the featured materials and other content. Users should conduct their own due diligence and seek professional advice where necessary. While Highline Beta strives to ensure accuracy and keep content up to date, financing programs, grants, and regulations may change. We encourage users to consult with qualified financial advisors, lenders, or legal professionals before making any financial decisions.
