Understand the commitment first
A HELOC is secured by your home. It typically lets you draw funds up to an approved limit during a draw period. Rates are usually variable, so payments can change. Failure to repay can put your home at risk. Review the CFPB’s HELOC explanation before comparing offers.
Can I keep my existing mortgage?
A HELOC can be a separate loan alongside an existing mortgage. It adds a repayment obligation; it does not eliminate the first mortgage payment. Ask the lender to explain the combined monthly obligation and how payments could change after the draw period.
What should I bring to an initial conversation?
- Your California property address or ZIP code and whether you own it.
- An estimate of your property value and outstanding mortgage balance, if you have them.
- Your intended ADU use: family, personal space or a potential rental.
- Your estimated total project budget, timing and any written quotes.
These are conversation starters, not qualification criteria. Do not upload Social Security numbers, account statements or other sensitive documents through our inquiry form.
Questions to ask before accepting a HELOC
- Is the rate variable, and what index, margin, adjustment limits and fees apply?
- How do payments differ during the draw and repayment periods?
- What happens if construction is delayed or the project costs more than expected?
- Does the product permit the intended use, and when can funds be accessed?
- Are there minimum draws, early closure charges or other restrictions?
How much can I borrow?
Your estimated equity alone does not determine an approved limit. The lender evaluates the property and borrower under its own requirements. ADU Fund Co does not quote a universal credit score, equity percentage or approval amount.
Does a HELOC cover the whole prefab project?
Compare the available financing with a complete written project budget, including items outside the prefab unit itself. An attractive unit price is not the same as the total amount needed to complete the project.
Sources & scope
Sources checked October 10, 2026. General educational information, not an individual financing recommendation. Loan terms and approval are determined by the lender. ADU Fund Co helps with initial inquiries and next steps.