A revolving line of credit secured against your home's equity. You draw against the line as needed and pay interest only on what's drawn.
The most common ADU financing vehicle in California. Variable rate (8.5-10.5% typical April 2026), low closing costs ($500-$2k), and draws can match construction milestones. Best for homeowners with $200k+ existing equity and tolerance for variable-rate exposure.
Part of the BackyardADU California ADU Glossary — plain-English definitions of the regulatory, construction, and financing terms you'll encounter during a California ADU project.