An ad for the city of Boston's new guidebook for homeowners looking to add an accessory dwelling unit to their property is displayed on a digital billboard on a downtown sidewalk in March 2025. Photo by James Sanna | Banker & Tradesman Staff
Greylock Federal Credit Union has launched a new loan product for financing homeowners who want to add accessory dwelling units.
The Pittsfield-based credit union’s new loan program requires the property to be the borrower’s primary residence and that the ADU must be installed on the property securing the loan.
Additionally, the subject property must be a one- to four-family residential property and the borrower must provide Greylock with the approval from the city or town authorizing the construction of the ADU and a copy of their accepted contract/agreement for the ADU from a licensed contractor at the time of application.
The loan can also be a second mortgage or first mortgage product.
“The housing shortage requires a variety of creative solutions, and I’m excited to know that Greylock is a part of this process to create a pathway for housing,” Greylock Federal Credit Union’s Chief Lending Officer Myla Franklin said in a statement.
In Massachusetts, ADUs are now permitted by right on most lots zoned for single-family houses, and advocates and policymakers hope the measure can generate 8,000 or more new homes in the state in the coming years.
In its announcement, Greylock noted that the city of Pittsfield has already updated zoning regulations to enable ADU construction.
The credit union will be hosting information sessions to help community members navigate the ADU development process and to learn more about the new loan program.
“We’ve been watching the conversation around ADUs for a while now, and this loan product is one that meets the growing need of our community,” Greylock Vice President of Mortgage Originations Tara McCluskey said in a statement.
Greylock is just the latest Massachusetts financial institution to launch a loan product specifically tailored to ADUs.
