| Focus | A homeowner decision |
| Review | Lender requirements apply |
Confirm what can be built
Begin with the local planning authority and qualified design or construction professionals. An accessory dwelling unit or addition can raise different property-use and permitting questions. A mortgage conversation does not confirm that the project is legally permitted.
Build a complete project budget
Include design, permits, site work, utility work, construction, and a contingency based on the actual scope. Compare when invoices arrive with available funds. Do not assume a projected future value is the value a HELOC lender will use today.
Compare structures before committing
Ask whether the existing property and planned use fit the available home-equity program or need a different financing approach. If future rental income is part of the plan, discuss its treatment rather than assuming it qualifies. Keep a fallback for cost or approval changes.
Prepare the next conversation
Use the home equity planning worksheet to organize your assumptions. Leave anything you do not know blank for discussion. The worksheet does not check eligibility or obtain a lender offer. You can request a broker conversation when you are ready to review your estimated home value, mortgage balance, and requested amount. Do not send account numbers or financial documents through a public inquiry form.
Read the source guidance. Provider examples describe that provider only. This guide is educational. A home-secured loan puts the property at risk if repayment fails. Program availability, documentation, costs, and approval depend on the lender and your circumstances.