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36 <br />In this step you will… <br />• Learn about resources <br />to help you make an <br />informed decision. <br />• Learn about potential <br />financing options. <br />Obtaining financing is often the greatest challenge homeowners face in trying to build an <br />ADU. That’s because the upfront cost can be large and there are not many financial options <br />specifically tailored to this type of development yet. Typically, homeowners use their own <br />savings, a loan or some combination of those sources to finance their ADU. <br />Here is an overview of some basic considerations and available resources to help you <br />manage or lower your costs. <br />Making an informed decision <br />Before making big financial decisions, it’s a good idea to seek advice from an independent <br />homeownership expert. One option in Minnesota is to contact a member of the non-profit <br />Homeownership Advisors Network. Advisory services are available to households of all <br />income levels. <br />Remember that you don’t have to get a loan from the first lender you meet. Be prepared <br />to seek quotes from several different lenders to see which can offer you the best rate <br />and/or terms. <br />Building an ADU may raise your property taxes because it will add value to your home, and <br />rental income may affect your income taxes. The specific impacts will be unique to your <br />home and circumstances. Be sure to consult with a qualified professional tax advisor. <br />FINANCESSTEP FOUR <br />Financing <br />Considerations