First Citizens Rolls Out Loan Program for Homeowners to Add Accessory Unit on Property

First Citizens’ Federal Credit Union, in conjunction with the Housing Assistance Corporation (HAC) announced a new loan offering to help local homeowners add in-law suites/small rental units to their property as Accessory Dwelling Units (ADUs) for a family member, a caregiver, or simply to generate rental income from unused space.

The ADU Loan Program aims to address our region’s housing crisis by enabling more cash-strapped homeowners to finance the renovations needed to create an additional small apartment on their property. This loan program is unique from other loans in that First Citizens’ will consider the rent income potential of the newly created apartment when reviewing a loan for approval.

Housing Assistance Corporation brought the idea for the ADU Loan Program to Peter Muise, First Citizens’ President and CEO, who also serves as board chair for Housing Assistance, after having dialogue with Nauset Mortgage LLC and other brokers. They concluded that the market offered no loan products specifically earmarked to help homeowners who wanted to create and finance an ADU.

CCIAOR has led the way to get towns to pass better ADU bylaws. So far, six towns across Cape Cod have created the ability to have by-right accessory dwellings on property with no income restrictions or family relation required of tenant -- Falmouth, Harwich, Brewster, Chatham, Provincetown, Orleans, and Truro. More have ADU bylaw articles on their town meeting warrants. The other Cape towns allow ADUs through either a combination of special permit and income or family restrictions on the tenant in the unit. You can get involved in advocating for the movement at

“This is a terrific example of local businesses stepping up to meet market demand and at the same time help address our critical housing shortage,” said Alisa Magnotta, Housing Assistance Corporation Chief Executive Officer.

“Both First Citizens’ and Nauset Mortgage recognized that a lot of homeowners on Cape Cod are over-housed—their houses are bigger than the homeowners want or need. This new loan program will help our homeowners create new apartments within their existing property. It’s a win for the homeowner who gains additional income, and it’s a win for our local communities. Without changing a neighborhood’s character, we will get more of the small apartments we desperately need for our year-round workforce.”

First Citizens’ ADU Loan offers many financing options for different ADU scenarios, including purchasing a new home or refinancing an existing home and building an ADU, constructing and financing a new home with an ADU, using existing home equity to build an ADU. To learn more, click here.