ADU Financing Just Got Easier | Future-Value HELOC Options

Use future value. Keep your first mortgage. Build what comes next.

What if the answer to your family’s next housing need is already sitting in your backyard?

A beautiful little home for Mom or Dad.
A place for an adult child who needs independence—but would love to stay close.
A guest space.
A home office.
Or, where local rules allow it, possibly even a rental that creates another stream of income.

Accessory Dwelling Units—ADUs—have been getting a lot of attention lately, and for good reason.

Here in Utah, new rules that took effect October 1, 2026 expanded opportunities for detached ADUs in certain communities. Qualifying municipalities must now allow detached ADUs on eligible single-family lots of at least 11,000 square feet, and some cities may allow them on even smaller lots. Local zoning, setbacks, building codes, HOA requirements and other rules still matter, so every property needs to be looked at individually.

But there’s another part of the ADU conversation that I think is just as exciting:

How do you pay for it?

Because having the space and the vision is one thing. But having another $150,000, $200,000—or more—sitting in the bank is something else entirely.

The Financing Has Been the Missing Piece

For many homeowners, the first thought is:

“Do I have enough equity?”

And the second thought is:

“Please don’t tell me I have to refinance my first mortgage.” 😊

I hear you.

A lot of homeowners are sitting on first-mortgage rates they have absolutely no desire to give up. A traditional cash-out refinance replaces that mortgage. A traditional HELOC or second mortgage generally looks at the equity you have in the property today.

But what if the project you’re about to build is going to add substantial value to your property?

What if we could consider the value you’re creating?

Now we can!

Your FUTURE Value May Help Fund the Project

Here at Fairway, we have access to a renovation HELOC (home equity line of credit) that can consider the estimated after-renovation value of the property when determining how much financing may be available.

What?! Oh, yes! That is the part that makes me sit up and pay attention!

Instead of looking only at what the home is worth today, we are able to consider what the property is expected to be worth after the eligible ADU or renovation is completed.

That can create a very different financing picture and opportunity!

Let’s use a simple example.

Imagine:

Your home is worth approximately $670,000 today
You’re considering an ADU project costing around $215,000
The completed property is projected to be worth approximately $885,000

A traditional equity product may focus heavily on that $670,000 current value.

But a future-value renovation HELOC may be able to consider the $885,000 projected completed value instead (the value after the ADU is built).

That additional value would then provide financing capacity that simply wasn’t available based on the property as it sits today.

That is a HUGE DIFFERENCE!

And Your First Mortgage Can Stay Put

This may be my favorite part.

Because this is separate financing, you are able to leave your existing first mortgage exactly where it is.

No replacing the first mortgage.

No giving up a great first-mortgage rate just to access funds for the project.

Instead, we’re potentially adding a second-lien renovation HELOC designed to help finance the improvement.

For homeowners who have said:

“I would love to build an ADU, but I am NOT touching my mortgage rate.”

This is a conversation worth having.

What Could an ADU Change for Your Family?

This is where the numbers become much more personal.

Maybe Mom or Dad could live close enough that you can help when needed—but still have their own home, kitchen and privacy. Maybe your college graduate could have an affordable place to live while building savings for the future. Maybe you need a more flexible space as your family grows and changes. Maybe you’re thinking about multigenerational living. Maybe a detached ADU could become part of your long-term income or retirement strategy, where permitted.

Or maybe you simply have a big backyard and have wondered for years:

“Could we put something back there?”

Now may be a very good time to find out!

Factory-Built Housing Makes This Even More Interesting

You already know I’ve been spending a lot of time looking at manufactured, modular and other factory-built housing.

And ADUs are another reason I’m so fascinated by this space!

Depending on the property, jurisdiction, home type and project, factory-built or modular construction may offer another way to create a beautiful detached living space without approaching the project exactly like a traditional site-built home.

Housing is changing!

Construction is changing!

Local rules are changing!

And now the financing is changing, too!

That combination creates possibilities that simply weren’t as accessible before.

Let’s See What’s Possible on YOUR Property

Every property is different, and this is definitely not a one-size-fits-all program.

We need to look at things like:

Your city or county’s ADU rules
Lot size and zoning
Setbacks and building requirements
HOA restrictions, if applicable
The type and cost of the proposed ADU
Your current property value
The projected completed value
Your existing mortgage
Your income, credit and overall qualification
The contractor and project plans

But you don’t have to figure all of that out first.

That’s where I come in.

Let’s have a conversation. Tell me what you’re dreaming about. And let’s start pulling the pieces together.

Your Backyard May Hold More Possibility Than You Think

For years, we’ve looked at housing mostly one way:

Buy a house.
Sell a house.
Move to another house.

But affordability, changing family needs and new housing options are forcing all of us to think differently.

Sometimes the next home doesn’t have to be across town.

It may be 30 feet from your back door!

And now, there may be a financing option that lets you use the value you’re about to create—without disturbing the mortgage you already have.

That is what makes this so exciting to me.

If you’ve ever looked into your backyard and thought: “Could we build an ADU there?”

Send me the address. Let’s look at the property, the rules, the potential future value and the financing together. Because the ADU dream may be closer than you think.