Eligible Massachusetts homeowners now have access to a funded second mortgage up to $250,000 for the addition of accessory dwelling units, often called tiny homes or in-law suites, on their property.

Funding for the program comes from the Healey-Driscoll Administration in collaboration with MassHousing.

Governor Maura Healey’s 2024 Affordable Homes Act permitted ADUs statewide. Approval for these independent residences was previously tricky as they create two dwellings on lots zoned for single-family use.

During the first six months of 2025, over 550 accessory dwelling units were approved, the Executive Office of Housing and Livable Communities reported.

“Homeowners want a clear, affordable path to build an ADU, and financing is often the biggest hurdle,” Lieutenant Governor Kim Driscoll said in a press release. “By offering fixed-rate second mortgages of up to $250,000 through trusted community lenders, we’re helping more families move from plans and permits to construction. ADUs can support multigenerational living, help seniors stay close to family and create new rental opportunities in communities statewide.”