Private Financing Options for Massachusetts Homeowners

If you’re not eligible for city or state programs, or you’d rather explore private lending, several local banks and credit unions across Massachusetts offer competitive financing options that can be used to fund your ADU project.

These institutions may not offer zero-interest or forgivable loans, but they do provide accessible home equity loans, lines of credit, construction loans, and refinance options tailored to homeowners looking to invest in their property.

💬 Why Consider a Bank or Credit Union?

  • 🏡 They understand the local market
  • 💼 They may consider rental income as part of your qualification
  • 💳 They offer multiple flexible financing products for property improvements
  • 👥 You may already have a relationship with one

🔹 Example Institutions Offering ADU-Friendly Lending

Cape Cod 5

  • Offers ADU-specific financing including home equity loans, HELOCs, and mortgages up to $1M
  • Known for their flexibility and experience with ADU clients

🔗 Learn more

Seamen’s Bank (Outer Cape)

  • Considers projected rental income for ADU loan qualification
  • Offers 15- and 30-year financing options for ADU builds

🔗 Learn more

Rockland Trust

  • Offers competitive cash-out refinance and home equity products
  • Known for working with homeowners on creative housing solutions

🔗 Visit site

Metro Credit Union & HarborOne

  • Offer low-rate home equity loans and HELOCs
  • Local underwriting and fast approvals
  • Good for internal conversions or garage ADUs

🔍 Not Seeing Your Bank Listed?

Most Massachusetts-based banks and credit unions offer lending products that can be used for ADUs — even if they don’t advertise them specifically. Here’s how to ask:

🧭 What to Ask Your Bank or Credit Union:

  • “Can I use a home equity loan or HELOC for an ADU project?”
  • “Will you consider projected rental income as part of the application?”
  • “Do you offer construction loans or rehab loans for detached units?”
  • “Have you worked with ADU borrowers before?”

📌 ADU Link Tip

If you have at least 20% equity in your home, you may qualify for private financing even without a grant or public loan program. Start with the bank that holds your mortgage — they may offer streamlined terms or loyalty incentives.

📞 Need a List of Local Lenders Near You?

We can send you a list of Massachusetts-based lenders familiar with ADU projects — just fill out a short form and we’ll connect you to helpful options.

➡️ Request local lender list
📧 [email protected]

ADU Link — Empowering Homeowners With the Tools to Build Smarter