Financing an ADU with no usable equity is possible, but the standard renovation loans are an awkward fit, so expect to shop for a specialty product. The agency renovation loans (FHA 203k and Fannie Mae HomeStyle) let you roll improvement costs into the financing based on the after-improved value of the property, which works well for something like adding a bedroom or bath to the existing house. An ADU is often treated as a separate additional structure rather than an improvement valued on that as-completed basis, so those programs may not underwrite it the way you are hoping. The likelier path is a lender with ADU-specific guidelines. Fannie Mae, Freddie Mac, FHA, and VA have moved slowly here, while a growing number of private and portfolio lenders have rolled out ADU-friendly programs that will lend against the completed value. Availability and terms vary and the space keeps evolving, so confirm what products exist when you are ready. Be realistic that an ADU-specific loan probably will not be the cheapest money on the menu, but a workable option usually exists. The durable sequence: get firm construction costs first, then a projected as-completed value, then match those numbers to the right product. We are glad to help you find and compare the ADU financing options that fit your property in a free Roadmap conversation.