Financing Options for ADU & Home Remodeling in San Diego

Building an ADU or taking on a major home remodel is an exciting step — but financing the project can feel overwhelming. At Fabrick Construction, we guide San Diego homeowners through the most practical financing paths so you can move forward with confidence.

Home Equity Line of Credit (HELOC)

A HELOC lets you borrow against your home’s equity with flexible draws as you need them.

Pros:

• Interest paid only on what you use
• Flexible for phased projects
• Often lower rates than personal loans

Cons:

• Variable rates can rise over time
• Requires significant existing equity

Cash-Out Refinance

This replaces your current mortgage with a larger one, allowing you to pull out cash for your ADU or remodel. Note: In today’s market, cash-out refinances may be less favorable for homeowners whose mortgages are locked in at historically low rates, making this option potentially less attractive compared to others.

Pros:

• Lower, fixed-rate payments
• Longer repayment terms
• Good option if rates are favorable

Cons:

• Full refinance required
• Higher closing costs than a HELOC

Renovation & Construction Loans

Designed specifically for building projects, these loans roll construction costs into your mortgage or provide staged draws.

Pros:

• Tailored for ADU and remodeling projects
• Funds tied to project milestones
• May allow lower down payments

Cons:

• More paperwork and inspections
• Interest-only during construction phase

Personal & Bridge Loans

Short-term loans can help cover immediate expenses or fill a gap while waiting for permanent financing.

Pros:

• Fast approval and funding
• Useful for small remodels or bridging timing gaps

Cons:

• Higher interest rates
• Shorter repayment windows

How to Choose the Right Financing Option

Every homeowner’s situation is different. Factors like credit score, equity, income, and long-term goals all play a role.

General guidance:

• Use a HELOC for flexibility and smaller projects
• Consider a cash-out refinance for stable, long-term financing
• Explore renovation loans for larger ADU or remodel projects
• Lean on short-term loans only when necessary

Why Work With Fabrick?

At Fabrick Construction, we’ve partnered with homeowners across San Diego County to make financing straightforward. While we don’t issue loans ourselves, we connect you with trusted lenders who understand ADU and remodeling projects.

We help you:

• Match the right financing path to your project size and goals
• Structure your build in stages that align with your budget
• Plan ahead so funding never slows construction

Ready to Explore Financing Options?

No matter where you are in San Diego — from Point Loma to Carmel Valley, Del Mar to Oceanside — Fabrick can help you understand your financing choices and build with confidence.

👉 Book your free ADU and remodeling consultation today to discuss both your project and financing strategy.

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Disclaimer: The information provided here is for general informational purposes only and should not be considered financial advice. We are highlighting common industry trends and financing options that may be available to many homeowners. Every situation is unique, and we encourage you to consult with a qualified financial advisor or lender before making any decisions.