RENOVATION AND ADU FINANCING

ARV HELOC

Your renovations will create equity, and a renovation HELOC gives you access to it before you build.

Step 1 of 2

Your property and project

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Occupancy

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Important estimate details. Results are estimates, not an application, approval, commitment to lend, or credit decision. Final value, line, rate, credit score, and eligibility are subject to appraisal, underwriting, and current program terms.

The ARV HELOC modeled here has a variable rate. Payment estimates assume the full line is drawn. The interest-only payment applies during the first 10 years; the 20-year principal-and-interest payment is illustrative and assumes today’s rate remains unchanged. Actual future payments may differ, and payments exclude fees.

Renovation financing guide

Plan your renovation or ADU with an ARV HELOC

ARV HELOC stands for After Renovation Value Home Equity Line of Credit. It is designed to let qualifying homeowners access equity expected to be created by approved renovations—equity that may not be in the home today.

Instead of looking only at current value, an ARV HELOC may also consider the home’s estimated value after the work is complete. This can create another home renovation financing option for an ADU, addition, major remodel, or whole-home project. Use the calculator above to explore how the project and property details may affect an initial estimate.

Why consider ARV-based financing

Plan around the potential equity your renovation may create

Consider future equity

An ARV HELOC may let qualifying homeowners borrow based on potential equity from eligible improvements instead of limiting the estimate to equity already available today.

Support a larger project

Qualifying renovation HELOC projects may include an ADU, addition, kitchen remodel, major systems work, or a coordinated whole-home renovation.

Compare scenarios first

Adjust the budget, expected completed value, credit profile, and requested line to see how the estimated rate and payments may respond.

The process

How ARV HELOC financing works

  1. 01

    Describe the property today

    Start with the home’s current estimated value and all existing mortgages, HELOCs, and other home-secured debt.

  2. 02

    Outline the renovation

    Build a realistic project budget using contractor estimates, plans, material choices, or early feasibility research.

  3. 03

    Estimate the completed value

    Consider the scope of work and comparable renovated homes. A lender appraisal ultimately determines the after-renovation value used for financing.

  4. 04

    Review the line and payments

    Use the estimate to plan, then review documentation, project eligibility, appraisal requirements, and current terms with a loan professional.

Compare your options

Traditional HELOC vs. ARV HELOC

Comparison of traditional and After Renovation Value home equity lines of credit
ComparisonTraditional HELOCARV HELOC
Value consideredPrimarily the home’s current appraised valueMay consider the estimated value after eligible improvements
Common useProjects supported by equity already available todayRenovations or ADUs expected to meaningfully change the property
Project detailsStandard property, income, asset, and credit documentationMay also require plans, budgets, contractor details, and project review
Final lineDepends on current equity and underwritingDepends on the completed-value appraisal, project review, and underwriting

ARV HELOC questions

Frequently asked questions

What is an ARV HELOC?

ARV HELOC stands for After Renovation Value Home Equity Line of Credit. It is designed to let qualifying homeowners access equity expected to be created by approved renovations—equity that may not be in the home today. The completed-project value remains subject to appraisal and underwriting.

How is after-renovation value determined?

The expected value is evaluated using the proposed scope of work, the property, and comparable completed homes in the local market. Your estimate is useful for early planning, but the lender’s appraisal and underwriting process determines the value used for financing.

Can an ARV HELOC be used for ADU financing?

An ARV HELOC may be available for an eligible attached or detached accessory dwelling unit, garage conversion, or other permitted living-space project. Availability depends on the property, local requirements, project feasibility, appraisal, and current program guidelines.

How is a renovation HELOC different from a traditional HELOC?

A traditional HELOC is generally based on the equity available in the home today. A renovation HELOC may consider the home’s expected value after approved work is complete, which can be helpful when a substantial renovation or ADU is expected to change the property.

How do the rate and payment estimates work?

The ARV HELOC modeled here has a variable rate, so the rate and payment can change. This calculator shows an estimated interest-only payment for the first 10 years and an illustrative principal-and-interest payment amortized over the following 20 years, assuming the full line is drawn and today’s estimated rate remains unchanged.

Does this calculator show what I will be approved for?

No. The calculator provides planning estimates based on the information entered. It is not an application, approval, commitment to lend, or credit decision. Final eligibility and terms depend on appraisal, documentation, underwriting, and current program guidelines.

One-on-one guidance

Talk through your renovation plans

Schedule a conversation about ARV financing, project costs, and your next steps.

Book a Consultation