SWRPC Hosts Accessory Dwelling Unit (ADU) Financing Webinar
- December 16, 2025
- Housing,
Several lending institutions, builders, and housing experts came together on Tuesday, December 2, 2025 to discuss options for homeowners looking to finance an ADU. Guest speakers included Christine Greenwood-Smart from Savings Bank of Walpole, Roy Graves from NH Mutual Bancorp, Cathy Murray from Mascoma Bank, Chris Lee from Backyard ADUs, RJ Adler from Wheelpad, and Ryan Pope from NH Housing.
ADUs in the Monadnock Region
Chloe Gross started the evening by providing the audience with context for who this webinar was for and how it came to be. She discussed the current status of ADUs in the Monadnock Region and reviewed recent legislative changes that have laid the groundwork for easier implementation across the state.
Ryan Pope discussed cost and financing considerations for ADUs such as the unique costs and challenges of individual sites, factoring in contingency, and potential increases in taxes. Ryan also discussed various ADU-specific financial products such as home equity loans and lines of credit, as well as a new home improvement financing product. One main takeaway from Ryan’s presentation was that talking to your bank about your situation is critical for finding the product that works best for you.
ADU Financing Products
Each of the guest speakers then had five minutes to present their products which range from ADU-tailored construction loans and Home Equity Lines of Credit (HELOC) to manufactured ADUs and short-term solutions for home accessibility needs. Savings Bank of Walpole highlighted their new ADU Construction Loan product which allows homeowners to access financing for an ADU without changing the interest rate on their existing mortgage. SBW’s ADU loan product is a second-lien loan with a fixed interest rate. Likewise, Mascoma Bank’s ADU loan products qualify as second mortgages. Mascoma Bank is also offering 90% loan-to-value with no required mortgage insurance. To learn more about each product, view the webinar recording at www.youtube.com/watch?v=Wxjxh4cWO7g.
Panel Discussion and Audience Q&A
The panel discussion was moderated by Ryan Pope. Questions included,
Q. How should homeowners decide which product is best for them and their situation?
A. Talk to your bank! Consider interest rates and existing loan obligations. What are your goals? Do you have substantial equity in your home? These kinds of questions will help you and your lending team determine whether an ADU loan, a traditional construction loan, or a HELOC make the most sense for you.
Q. How have Backyard ADUs and Wheelpad clients financed their products?
A. Backyard ADUs has seen an increase in cash purchases from clients who recently sold their house. However, a growing number of clients are using ADU financing tools such as an ADU mortgage or HELOC. Others are participating in Massachusetts’ Home Modification Loan Program that provides zero interest loans for people over the age of 55 or with disabilities. Vermont and Maine also have financial programs aimed at homeowners looking to increase housing on their property.
Q. Are there specific kinds of construction (manufactured, stick-built, panelized) that make it easier for banks to finance?
A. Construction financing and residential lending both typically require the project to be attached to the existing structure or permanently situated on the real estate (i.e. not on wheels). However, there may be more flexibility with Home Equity Loans because the equity already exists with the homeowner. In sum, yes, the type of structure does impact the kind of financing options that are available.
To view the webinar, visit www.youtube.com/watch?v=Wxjxh4cWO7g.
For more information, contact Chloe Gross at [email protected].
