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Objective: To offer a low interest rate second mortgage loan product for the construction of an Accessory Dwelling Unit. This loan product is temporarily made available exclusively to eligible homeowners in the towns of Babylon, Shelter Island, East Hampton, and Southampton as part of our commitment to increase affordable units throughout our territory. Here are the parameters for the ADU loan product.


  • Applicant homeowners must go through CDLI’s ADU grant process to secure primary financing before applying for this loan

  • Minimum Credit Score = 625

  • Loan amounts up to $125,000.00 based on need and funds availability

  • Applicant’s Income must not be greater than 100% of the Area Median Income (AMI) adjusted for family size

  • Interest (4% or 6%) based on household income in relation to the Standard AMI for the county of residence with no adjustment for family size  

  • APR = 4.84% for loans with interest of 4%

APR = 6.909% for loans with interest of 6%

APR calculations are based on a loan of $125,000 over 10 years (120 months) considering loans fees, interim interest, and possible title insurance costs.

  • Duration: 10 year-term (120 months). Other terms may be allowed based on underwriting guidelines

  • Second lien position is required

  • Title insurance may be required for all loan amounts.

  • Borrower to pay the loan fees at closing

  • Loan fees:

    • 1% origination fee

    • $120 application fee

    • $125 processing fee

    • Title insurance fee (applicant to shop for)

  • Loans will be disbursed at closing.

  • A signed contract with the builder/contractor will be required at closing, or before disbursement.

Datos de contacto


(631)-471-1215 ext. 1510 - 2580 -1930

Correo electrónico:


We are a nonprofit exempt mortgage banker. Loans are arranged through third-party vendors. CDLI Funding Corporation is a Fair Housing and Equal Opportunity lender.

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Accessory Dwelling Unit Loan Product (ADU)

Accessory Dwelling Unit Loan Product (ADU)

A low interest rate second mortgage loan product for the construction of an Accessory Dwelling Unit.

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