Finance an Accessory Dwelling Unit

BackHome ADU Loans

Finance your accessory dwelling unit with a BackHome ADU Loan.

Craft3 is the exclusive financing partner of BackHome ADU, a regional nonprofit dedicated to confronting the affordable housing crisis, one backyard at a time.

Financing to Fit

Borrow up to $175,000 to cover design, permitting and construction. Perfect credit not required.

Simple Terms

No upfront fees and you receive a fixed, subsidized interest rate for participating in the program.

Convenient Repayment

Make automated payments directly from your bank account.

Backhome ADU Loans

Experience and Dedication

Through this program, participants choose from a selection of affordable ADUs and receive turnkey service and a subsidized interest rate on their ADU loan, in exchange for agreeing to rent the completed ADU to an occupying household (including family members or friends) that earns no more than 80% of area median income* for 8 years.

BackHome ADU simplifies the process for homeowners by creating a single solution that brings together ADU builders, a property management company, and Craft3.

*Portland AMI (Area Median Income) as defined by City of Portland here.


  • Residential properties in Multnomah, Washington, and Clackamas Counties
  • Owner-occupied, single-family residences with sufficient space to accommodate the desired ADU
  • You must agree for 8 years to rent the completed ADU to an occupying household (including family members or friends) that earns no more than 80% of area median income*.

*Portland AMI (Area Median Income) as defined by City of Portland

Rates & Terms

  • Fixed interest rates


  • Borrow up to $175,000. Loan can cover design, permitting and construction.
  • No income restrictions
  • Borrow up to 100 percent of project cost
  • Convenient repayment directly from your bank account
Household Income
Interest Rate
All Incomes
3.49% (3.67% APR*)
$130,000 loan at 3.67% APR.
240 payments of $765.45 per month.

*APR, Annual Percentage Rate based on example loan criteria.
Homeowners must be participants of BackHome ADU to receive a BackHome ADU Loan. BackHome ADU loan amount not to exceed $175,000.
Loan availability, terms and conditions current as of 05.15.2023 and are subject to change. 1% origination fee and appraisal costs apply. Property insurance required. Flood insurance may be required. All loan applications are subject to credit, property, and project approval. Examples and APR includes the approximate cost of prepaid finance charges, including a $1,300 origination fee and third-party costs of $800. Actual APRs for individual loans may differ.

Our Process

Connect With BackHome ADU

Visit BackHome ADU and complete the online inquiry form. BackHome ADU will then orient you to their program, conduct a site evaluation, schedule consultations with their builder partner(s), and connect you with the Craft3 ADU team. BackHome will help you through each step of the process.

Customer Stories

Building Connections and Communities

A Craft3 loan helped Randal, a first-time homeowner, build an accessory dwelling unit (ADU) that will be rented to a tenant who earns 80 percent or less of the area median income. [Randal was thrilled to build a unit of lower-income in-fill housing while also creating a permanent asset.]

Pay It Forward

Our Lending Model

When you repay your loan, we use that money to make other loans. This allows us to serve more homeowners. Over time, this makes a big difference for communities, local economies and the environment.

Additional Resources

The brochure explains the BackHome ADU Loan program for homeowners.

Our Team

“I love numbers! But I never forget that behind every application I review there’s a person that deserves careful and personalized attention.”

Nicole Gerke
Consumer Credit Underwriter