Make space for your next chapter.
Accessory Dwelling Units (ADUs) give homeowners a way to add flexible living space right on their property.* With new statewide rules making ADUs more accessible, they’re becoming a smart option for Massachusetts homeowners looking to support family or generate extra rental income.
*The loan is available for the construction of an ADU on an owner-occupied single-family residence. Only one ADU may be built on a single lot. A minimum credit score of 640 (subject to underwriting), full income verification, and an "as-completed" appraised value of the ADU are required. DTI must be under 45%. A licensed contractor is required. ADUs are intended for long-term renting and living (31 days or more) and cannot be used as short-term or vacation rentals. All loans are subject to credit approval, collateral valuation, and underwriting requirements. Third‑party fees (appraisal, title, recording, etc.) apply. Terms and conditions are subject to change without notice. Not all applicants will qualify. Additional conditions may apply.
ADUs Explained
Accessory Dwelling Units (ADUs) are small, self-contained living spaces added to or built on an existing property—like in-law apartments, backyard cottages, or garage conversions. They offer a flexible way to create housing for a family, generate rental income, or increase your home’s long-term value. Recent legislation in Massachusetts has made it easier for homeowners to build ADUs by simplifying zoning rules in many communities. Learn more about ADUs in Massachusetts on the state's website.
RCB’s ADU Construction-to-Permanent Loan is designed to make building an ADU simpler.
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One loan closing – no need to refinance once construction is finished
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Allows you to keep your first mortgage in place
ADUs are a great choice for:
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For Families
Offer a launchpad to family members in a tough housing market.
For Caretakers
Create a private space for aging parents or family members that's close enough for peace-of-mind.
For Extra Income
Generate income by creating a rental space on your existing property.
Types of ADUs
An ADU is any dwelling built on your property that is self-contained and has its own private entrance, not through the home's main entrance. ADUs can be categorized into three types: internal, attached, and detached.
Internal ADUs:
A self-contained unit built within the existing home, like a basement or upper level apartment.
Attached ADUs:
A self-contained unit attached to the existing home with a dedicated external entrance.
Detached ADUs:
A standalone structure on the main property.
HOW IT WORKS
Determine Eligibility
Before getting started, research your local zoning laws to get an idea of what's possible. From there, complete the planning and permitting process to understand your options and get a clearer estimate of the project cost.
Apply
Get in touch with an RCB lending representative and they'll help walk through the application process and understand your funding options.
Build & Earn
Once you’re approved, you can start building! Your loan will carry you through construction and into long-term financing, so you can begin using the space for family, rental income, or whatever added flexibility you need.
Speak with a Lending Representative
Our lending staff are here to support you. Click the button below to email with a lending representative who can answer your questions.
Banking that speaks your language.
At Reading Cooperative Bank, everyone is welcomed, valued, and understood. We have extended branch hours to accommodate your busy schedules and also take pride in our Spanish speaking workforce, ensuring effective communication with customers.
