New Accessory Dwelling Unit Loan Program Offered to Local Residents

FAIRHAVEN – A new loan program to help local homeowners add an accessory dwelling unit is being offered by First Citizens’ Federal Credit Union.

The in-law suites and small rental units are designed for family members, a caregiver, or to generate rental income from unused space.

The concept was brought to the bank by Housing Assistance Corporation as many Cape Cod communities are passing bylaws to make it easier to get the units permitted, but no financing support has been available.

The new bylaws are an effort to address the region’s affordable housing crisis.

The concept for the loans was brought to First Citizens’ President and CEO Peter Muise by HAC. Muise also serves as the board chair for HAC.

“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, HAC’s CEO.

“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 of need.

This new loan program will help our homeowners create new apartments within their existing property.”

Magnotta said the loan offering is a win for homeowners to gain additional income, and a win for local communities.

“Without changing a neighborhood’s character, we will get more of the small apartments we desperately need for our year-round workforce,” she said.

The First Citizens’ ADU Loan offers several 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, and using existing home equity to build an ADU.

“First Citizens’ is excited to add this new loan product to our already diverse residential suite of loan products because it serves a critical need in our community,” Muise said.

“ADU loans provide opportunities for multigenerational families, seniors and homeowners alike, to live more comfortably with rental income.”

The towns of Harwich, Chatham and Eastham recently passed ADU bylaws.

To learn more about applying for assistance through the ADU Loan program, contact Patrick Neenan by emailing or by calling 774-628-7859.

First Citizens’ Federal Credit Union has full service offices in Wareham, Falmouth, Mashpee, Hyannis, and Orleans, with a lending office in Plymouth.

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