Accessory Dwelling Unit (ADU) Loans

Stronger Homes, Stronger Communities

 
Unlock the potential of your property with our flexible Accessory Dwelling Unit (ADU) Loan solutions. We are proud to partner with San Gabriel Valley Habitat for Humanity to offer ADU loans to our members. Whether you're looking to build, expand, or renovate, we offer a range of customizable loan options designed to fit your unique vision and budget.  
 
Benefits to applying for an ADU Loan through Pasadena FCU are:
  • Flexible terms and amounts - Home equity products can often be customized with flexible repayment options to fit your budget and timeline.
  • Fewer Fees -  No application, origination, or prepayment fees.
  • One-on-one guidance -  Whether it’s choosing between a lump sum loan or a revolving credit line, you get direct help making the best choice for your ADU project.
Through this partnership, our members can transform their properties by building ADUs that provide additional housing options for extended family, aging parents, or even rental income.
 
Program Benefits:
  • Free Consultations - Get personalized support and expert advice to help you get started.
  • Rebuilding Assistance - From home plans to engineering and permitting, we’ll help you navigate the process every step of the way.
  • Flexible Payment Plans - Spread costs over a period of time to make rebuilding more manageable.
Contact one of our loan specialists today to get the process started. Call us at 800-445-7328 or send us an email at lending@pfcu.org and let us know you're interested in learning more about ADU financing.

What's an Accessory Dwelling Unit (ADU)?

An Accessory Dwelling Unit (ADU) is a small, independent living space located on the same property as a single-family home. Often called a “granny flat,” “in-law suite,” or “back house,” an ADU can provide extra space for family members, generate rental income, or simply make better use of your property. These units are fully equipped with their own kitchen, bathroom, and living area—making them a flexible and sustainable housing option for homeowners looking to expand their living arrangements or support loved ones.
 

What are the different types of ADUs?

There are multiple ways to build an ADU:
 
  1. Detached ADU
    A standalone unit built separately from the main home, often in the backyard. This is ideal for added privacy and independence.
      
  2. Attached ADU
    An extension of the existing home that shares at least one wall with the main house but has its own entrance and living amenities.
      
  3. Garage Conversion ADU
    An existing garage is converted into a fully livable space, complete with a kitchen, bathroom, and sleeping area.
      
  4. Internal ADU
    A unit built within the existing footprint of the home—such as in a basement or converted attic—with a private entrance and essential amenities.
      
  5. Junior ADU
    A smaller, more compact type of Accessory Dwelling Unit, usually up to 500 square feet, that’s created within the walls of an existing single-family home, usually by converting a bedroom or other unused space.
     
  6. Above-Garage ADU
    A living space constructed on top of an existing or newly built garage, offering an efficient way to add square footage without expanding the home’s footprint.

What are the requirements to apply for an Additional Dwelling Unit (ADU) Loan?

To qualify, you must be a member of Pasadena FCU and have the following:
  • A single-family residence that you have owned at least three years as your only property.
  • Current on your mortgage, property taxes, and homeowners' insurance.
  • No open collections, charge offs or bankruptcies (within the last 7 years)
  • A minimum FICO credit score of 620
If you're unsure about the above requirements, speak with one of our loan specialists for more information.