Financing the Future: Tiny Homes, Big Potential
- Neil Caron
- Jul 29
- 2 min read
July 29, 2025 | Housing Innovation | Presented by ReadySetLoan™
Backyards are getting an upgrade — and ReadySetLoan™ is here to help you explore the possibilities.
The tiny home trend has been gaining momentum across the U.S., especially in the form of Accessory Dwelling Units (ADUs) — think backyard cottages, garage conversions, and standalone mini-houses that can offer rental income, multigenerational living, or affordable starter housing. But while the interest is high, financing these pint-sized properties has been anything but small or simple. Until now.
What’s Changing?
Recent pushes at the federal and state levels are making it easier for homeowners to build and finance ADUs. Freddie Mac, for example, is revising underwriting policies to allow lenders to count ADU rental income as part of a borrower’s qualifying income. That’s a big deal — especially in areas where zoning restrictions have been lifted and homeowners are looking to turn extra space into extra income.
This is part of a broader housing strategy aimed at easing the national shortage by unlocking new housing opportunities without building entirely new subdivisions. According to Freddie Mac, ADUs are now eligible for certain appraisal flexibilities and loan products, making financing more accessible than ever.
Why It Matters in Connecticut
While cities like Los Angeles and Portland have embraced ADU-friendly laws, towns across Connecticut are slowly catching up. Legislative changes have opened the door for more homeowners to consider ADUs as a viable option — whether for aging parents, young adult children, or rental income.
That said, local zoning and financing complexities can still create confusion. That’s where ReadySetLoan™ steps in.
🐷 RSL Piggy Points™
ADUs can increase your home’s value and generate rental income.
New guidelines now allow you to use that projected income to qualify for a loan.
Financing options are expanding — but expert guidance is still essential.
Neil’s Take 🎙
“This is the kind of change that puts power back into the hands of homeowners. ADUs are no longer a fringe idea — they’re a smart strategy. But navigating financing rules and local zoning? That’s where we come in.”— Neil Caron, Area Sales Manager, CMG Mortgage
RSL Perspective
At ReadySetLoan™, we’re helping Connecticut homeowners explore how ADUs can fit into their broader financial goals. Whether you're looking to create passive income, house a family member, or increase your property's long-term value, we’ll walk you through every step of the financing process.
Thinking of building in your backyard? Let’s talk strategy.
🏁 Your Next Step Starts Here
Backyard cottages aren’t just cute — they’re a smart housing solution. Learn how to turn your tiny home dreams into a big win. Visit ReadySetLoan™ today and let us guide you from start to finish.
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