Financing
Ways to pay for your build
Most of our clients do not pay cash. Here are the routes that actually work for ADUs, additions and remodels in the Sacramento region — and how the money lines up with the construction schedule.
Start here
Know your number before you draw a plan
The projects that run smoothly are the ones where the budget was settled first. A lender can tell you what you qualify for in a week; a redesign after the fact costs months. We are happy to give you a written scope and cost range to take to a lender before you commit to anything with us.
Talk it through
Ask us what a project like yours typically costs and how owners nearby funded theirs. No obligation.
Options
Six ways homeowners fund a project
Which one fits depends on your equity, your existing mortgage rate and the size of the build.
Renovation / construction loan
Underwritten on the finished value of the property rather than today's value, so the ADU or addition helps you qualify for the money that builds it.
- Funds released in draws as milestones complete
- Single close options available
- Appraisal based on after-completion value
Best for ADUs and large additions
Home equity line of credit (HELOC)
A revolving line secured against the equity you already hold. You draw only what the build needs and pay interest on the drawn balance.
- Keeps your existing first mortgage rate
- Flexible draws through the project
- Interest-only periods are common
Best when you already hold strong equity
Cash-out refinance
Replace your existing mortgage with a larger one and take the difference as project funds. Works best when today's rates are close to the rate you hold.
- One loan, one payment
- Long amortisation keeps payments lower
- Closing costs roll into the new loan
Best when refinancing makes sense anyway
Cash and staged savings
Some owners fund design and permits out of pocket, then finance only the construction phase once drawings and approvals are in hand.
- No interest on the early phases
- Firm numbers before you borrow
- Can be combined with any loan below
Best for smaller remodels
Milestone payment schedule
Every DK Homes contract ties payments to completed, inspected stages of work. You never pay ahead of the build.
- Deposit, then stage payments
- Clear scope attached to each stage
- Final payment after your walkthrough
Standard on every DK Homes contract
Third-party home improvement lenders
Unsecured project loans for smaller kitchen, bathroom or landscape work where a secured loan is more paperwork than it is worth.
- No lien against the home
- Fast approval
- Shorter terms, higher rates
Best for projects under $100k
Side by side
Comparing the main routes
| Route | Based on | Typical timeline | Best fit |
|---|---|---|---|
| Renovation / construction loan | Finished value | 4–8 weeks | ADUs, additions, whole-home builds |
| HELOC | Current equity | 2–5 weeks | Remodels, garage conversions |
| Cash-out refinance | Current value | 4–6 weeks | Large projects, rate-driven timing |
| Home improvement loan | Income and credit | Days | Kitchens, baths, landscape |
General guidance only. Terms, rates and timelines vary by lender and by borrower — confirm everything with your own lender.
ADU cost estimator
See your number before you call
Set your size and type. Nothing to fill in, no email required.
Type
Estimated project cost
Rates being confirmed
We are updating our per-square-foot rates for 700 sq ft detached adu builds. Ask for the current figure and we will give it to you in writing after the free feasibility review.
Our lending partners
Financing through US Bank and Hearth
Start your application online with Hearth and see the monthly payment options you qualify for — it takes about a minute. US Bank offers home improvement financing for larger projects. DK Homes is a general contractor, not a lender; terms come from the lender.
How it works
From approval to the first draw
01
Get a written scope
Lenders fund a defined project. We give you a scope and cost range you can hand straight to an underwriter.
02
Talk to a lender early
Before design starts. Knowing your ceiling shapes the drawings and saves a redesign later.
03
Appraisal and approval
For construction loans the appraiser values the property as if the project were already finished, using our plans.
04
Draws follow the build
Funds release stage by stage as inspections pass. We handle the paperwork the lender needs from the builder side.
Budget
What moves the number
Two projects of the same size can land thousands apart. These are the items that make the difference, and the ones we price openly in your proposal rather than burying in an allowance.
- Size and type of the unit or remodel
- Site conditions, grading and access
- Utility connections and panel upgrades
- City fees, school fees and impact fees
- Finish level of kitchens, baths and flooring
- Structural work on existing walls or roof
Questions
Financing FAQs
Want the numbers for your property?
We will put together a written cost range and a payment estimate so you can talk to a lender with real figures.