Accessory Dwelling Unit Loan Program
MassHousing will soon introduce a new Accessory Dwelling Unit Loan Program that will provide income-eligible homeowners with affordable financing to add an additional unit to their properties. The program is expected to launch in the Spring of 2026.
What is an ADU?
Accessory dwelling units (ADUs) are small residential living spaces that are located on the same lot as another home. ADUs can be inside an existing home (e.g., converting a basement into an apartment), attached to a primary residence as an addition, or completely detached (e.g., a cottage or converted garage in your backyard).
Accessory Dwelling Unit Loan Program Features
- Loans of up to $250,000 for detached ADUs, and up to $150,000 for attached ADUs.
- Loans combine an amortizing, interest-bearing loan with additional zero-interest, deferred-repayment financing.
- Funds must be used to cover the costs of construction of an ADU.
Eligibility
To be eligible for the Accessory Dwelling Unit Loan Program, homeowners must
- Own a single-family home, which they occupy as their primary residence
- Meet income guidelines, which vary by location
- Have necessary plans, permits and other pre-development materials in hand and be ready to move forward with construction
Additional eligibility requirements will apply.
How to Apply
Accessory Dwelling Unit Loan Program loans will be offered through MassHousing-approved partner lenders. Details will be posted to this page when the program opens for application in Spring 2026. Updates will be posted to this page, as well as MassHousing's Facebook and Instagram accounts.