Accessory Dwelling Unit

Discover the potential of your property with our Accessory Dwelling Unit. Add value to your home and keep the low-interest rate of your first mortgage.

 

Key Features

  • Flexible ADU Type
  • Rental Income Consideration
  • Innovative Financing Options
  • An Accessory Dwelling Unit (ADU) is another living space that can be added to an existing single-family or 2-4 units property.
  • ADUs can be:
    • Attached to the main house
    • Detached as a separate building
    • Converted from an existing space such as a garage or basement
  • ADUs can provide:
    • Additional income
    • Housing options
    • Flexibility for homeowners
  • Value: ADUs can increase the value and equity of your property.
  • Income: ADUs can generate rental income.
  • Housing: ADUs can provide affordable housing for family members, friends, or tenants.
  • Environment: ADUs can reduce your environmental impact by using less land, energy, and water than typical single-family homes.
  • Second Mortgage: Keep your low interest rate first mortgage.
  • Up to a 30-Year Term: More affordable payments than the traditional 15-year HELOC or 2nd mortgage.
  • Fixed Interest Rate: Predictable, stable payments for better financial planning.
  • Rental Income: Funds from the unit may be considered in qualifying for your loan.
  • Private or Government Mortgage Insurance: Not required.
  • Borrower(s) must own and occupy the property.
  • Borrower(s) must meet current credit and qualifying requirements.
  • Property must conform with all state and local zoning, building, and safety codes and regulations.
  • Non-conforming properties may be brought into compliance with loan proceeds.

The Ketchikan Gateway Borough and the City and Borough of Juneau has created ADU Grant Programs that are designed to boost housing inventory across our communities by offering financial incentives to existing homeowners who add an additional dwelling unit (ADU) to their property. 

Through these programs, we hope to create more opportunities for affordable housing and support the growth and sustainability of our neighborhoods. Explore the links below to learn more about the eligibility criteria, application process, and benefits of the ADU Grant Program.

Learn more about the Ketchikan Gateway Borough's or the City and Borough of Juneau's ADU Grant Programs.

As of October 1, 2024 – APR of 5.912%, based on a $150,000 loan amount with a 30-year term and an interest rate of 5.750%, would result in a monthly principal & interest payment of $875.36. The estimated monthly payment does not include amounts for property taxes and insurance. Loan approval is subject to credit approval, property approval, and loan program guidelines. Interest rates and program terms are subject to change without notice. Your actual interest rate and APR may differ.