Build an Income Unit, Guest Cottage, or Aging-in-Place Suite — with Local Financial Support
Homeowners on Cape Cod and the Islands are in a unique position: housing demand is high, zoning is evolving, and several local banks have stepped up to offer dedicated ADU financing options.
Whether you’re building for family, creating a short- or long-term rental, or looking to age in place, there are flexible loan products designed for you — right here in your region.
🏦 Local ADU Loan Programs
1. Cape Cod 5 – ADU Financing Solutions
Cape Cod 5 offers a suite of financing options for homeowners looking to add an ADU to their property.
Loan Types Available:
- ADU Home Equity Loan – Lump-sum, fixed-rate loan using your home’s equity
- ADU Mortgage Program – Loans up to $1 million with flexible terms
- Home Equity Line of Credit (HELOC) – Revolving credit line you can draw from as needed
Features:
- Competitive rates
- Flexible terms tailored to ADU use
- Local decision-making and customer support
🔗 Learn more at capecodfive.com/adu
2. Seamen’s Bank – ADU Loan Product
In partnership with the Lower Cape Housing & ADU Resource Center, Seamen’s Bank offers financing that’s friendly to ADU projects.
Highlights:
- Loans use home equity or projected rental income as qualification
- 15- and 30-year loan terms
- Support for detached or attached ADUs
- Free consultations available at participating housing resource centers
Ideal For:
- Homeowners planning to rent the ADU
- Seniors planning to downsize into an ADU on their property
3. The Cooperative Bank of Cape Cod – ADU Lending
The Cooperative Bank of Cape Cod has crafted ADU-specific home equity products designed for flexibility and accessibility.
Options Include:
- Home Equity Loans
- Home Equity Lines of Credit (HELOCs)
- Loans up to $450,000
Key Benefits:
- Quick local approvals
- Use funds for design, permitting, construction
- Personalized service from Cape-based loan officers
🔗 More info at thecooperativebankofcapecod.com
🧰 What Can These Loans Cover?
- Architectural & design costs
- Permits and inspections
- Site work and utility upgrades
- Construction (prefab or stick-built)
- Interior furnishings or finishes
🔍 Qualifying for Cape ADU Loans
Requirements may vary by bank, but generally:
- You must own the home
- The home must be in Barnstable, Dukes, or Nantucket County
- You should have sufficient equity (or expected rental income)
- The ADU must be built legally and meet zoning requirements
✳️ Bonus: Cape ADU Technical Support
Many towns across the Cape — including Wellfleet, Eastham, Orleans, and Provincetown — have partnered with the Lower Cape Housing & ADU Resource Center to provide:
- Free consultations
- Design and permitting guidance
- Referrals to approved lenders and contractors
📍 Visit the resource center
📧 Or contact ADU Link to get connected.
📞 Ready to Build Your Cape Cod ADU?
Let ADU Link help you connect with the right financing resource for your property and goals.