Accessory Dwelling Unit Financing
Expand your home. Expand your options.
Create more space for family, rental income, or your next chapter — with financing that fits your needs.
Ready to explore your ADU idea?
What is an ADU?
An Accessory Dwelling Unit (ADU) is a smaller, independent living space on your property — like an in-law suite, basement or garage conversion, or a detached backyard cottage.
ADUs can make it easier to:
- Support aging parents
- Give adult children an affordable place to live
- Create space for returning family members
- Add flexibility for changing needs
Financing Options at Metro
Whether you’re converting an existing space or planning a new detached unit, Metro offers flexible ways to finance your project.
Possible options include:
- Home Equity Loans
- Home Equity Lines of Credit (HELOC)
- Cash-out refinancing solutions
Not sure which one is right for you? A Metro home loan specialist can walk you through your options and help you understand what fits your goals and budget. Talk to a specialist today and start planning your future ADU!
Why Build an ADU?
ADUs are becoming more popular across Massachusetts because they offer:
- Multigenerational housing options
- Potential rental income
- Additional living space without moving
- Long-term property value
- A practical solution to rising housing costs
A well-planned ADU can provide both financial and lifestyle benefits.
Apply Now
How to Get Started
Building an ADU can feel like a big step — but we’ll help you take it one stage at a time.
1. Talk with a Metro specialist
Share your project idea and what you want to create.
2. Explore financing options
We’ll help you understand what’s possible based on your home, budget, and plans.
3. Start your ADU project with confidence
With the right financing plan, you’ll be ready to build the space that works for your life.
Additional Financial Assistance for Boston Residents
The City of Boston offers several ways to help homeowners plan and finance ADUs, making it easier to create more housing options in our neighborhoods.
ADU Bank Loan Pilot Program
- Additional financing available through partner lenders like Metro
- Must first apply for and receive funding from the Boston Home Center
- Designed to increase access to larger financing options for eligible homeowners
ADU Loan Program
- Up to $50,000 at 0% interest
- No monthly payments; repayment occurs only when the property is sold, transferred, or refinanced
- Available to owner-occupants of 1–3 unit homes (income limits apply)
ADU Technical Assistance Grant
- Up to $7,500 for pre-construction costs such as design, permits, and planning
- No repayment required
- Includes personalized staff guidance to help you navigate the process