Last updated: July 2025
A Home Equity Line of Credit (HELOC) is a revolving credit line that lets homeowners borrow against the equity they’ve built in their property.
It offers a flexible way to access funds for large expenses, especially home improvement or remodeling projects that can have a double positive effect: enhancing both your lifestyle and property value.
Because you can draw only what you need, when you need it, a HELOC is ideal for renovations that may unfold in phases, like designing, permitting, and constructing a backyard office or studio. You pay interest only on what you use. Additionally, your rates are typically lower than those of personal loans or credit cards.
With HomeEQ, applying for a HELOC is 100% digital, fast, and user-friendly, making it easier than ever to transform your backyard into a productive and personalized space.
Access cash within days
Tap into your home’s potential in minutes. Start our streamlined digital application to discover if a HELOC is right for you.
Why homeowners are building backyard offices and studios
The rise of remote and hybrid work has created a massive demand for home-based workspaces. But for many homeowners, the dining room table or corner of the bedroom doesn’t cut it anymore.
Backyard offices and creative studios have become a top solution for:
- Remote professionals seeking separation between work and home
- Freelancers and entrepreneurs needing a quiet, dedicated space
- Creatives and content producers building soundproof studios or maker sheds
- Parents creating a peaceful place to focus during work hours
A detached structure, such as an ADU (accessory dwelling unit), converted shed, or modular pod, adds function without major disruptions to your main house.
How much does it cost to build an outdoor office or studio?
The cost of a backyard office or studio depends on several factors, including size, materials, utilities, and whether you hire contractors or go DIY.
Here’s a general cost breakdown:
| Project Type | Estimated Cost Range |
| DIY Shed Conversion | $5,000 – $15,000 |
| Pre-Fab Office Pod | $15,000 – $35,000 |
| Custom-Built ADU/Studio | $30,000 – $80,000+ |
Additional costs may include:
- Electrical wiring and HVAC installation
- Insulation and drywall
- Permits and zoning fees
- Foundation work for larger units
For most homeowners, these costs are too large to pay out of pocket, but not quite large enough to warrant a full refinance. That’s where a HELOC comes in.
Use the HomeEQ HELOC Loan Calculator.
Using a HELOC to finance a backyard workspace
A HELOC is an ideal financing tool for your backyard build for several reasons:
- Draw funds as needed: Use your line of credit in stages, for materials, labor, or permitting
- Lower interest rates: Compared to personal loans or credit cards, HELOCs usually carry significantly lower rates
- Flexible repayment: Interest-only payments during the draw period help with budgeting
- Boost property value: Your investment could increase resale value and appeal
Example scenario (illustrative only):
Emma is a freelance UX designer in Portland. She uses a $45,000 HELOC to build a fully insulated backyard office with fiber internet and a skylight. The loan provides her with the flexibility to fund each project phase, including planning, foundation, and build-out, while keeping her cash flow free for business expenses. In three years, she repays the HELOC in full, and her property value has increased by $60,000.
HELOC vs. renovation loan: Which is better for outdoor projects?
You might consider other financing tools like home improvement loans or even a cash-out refinance. Here’s how they compare:
| Feature | HELOC | Home Improvement Loan | Cash-Out Refi |
| Flexibility | High (draw as needed) | Medium (lump sum) | Low (fixed new mortgage) |
| Interest Rate | Variable, lower than credit | Fixed, higher than HELOC | May be low, resets mortgage |
| Closing Time | Fast (5–10 days with HomeEQ) | Medium (1–2 weeks) | Slow (3–6 weeks) |
| Best For | Mid-size upgrades, DIY builds | One-time costs, minor repairs | Major overhauls, debt consolidation |
A HELOC stands out when you need phased, self-paced funding and want to avoid resetting your mortgage rate.
Planning your backyard build: Permits, zoning, and design tips
Before construction begins, make sure to plan smartly:
- Check local zoning laws: Some areas restrict ADU size or placement
- Apply for permits early: Waiting for approval can delay your build
- Consult your HOA: If applicable, check design and placement rules
- Plan for utilities: Factor in cost and logistics for electricity, HVAC, and internet
- Design for year-round comfort: Insulation, natural light, and ventilation matter
- Think resale: A studio with broad appeal (office, gym, guest room) adds more value
If you’re using a contractor, get multiple quotes and verify licensure. Modular office pods are also gaining popularity for their plug-and-play simplicity.
FAQ: Using home equity to build a backyard office
Can I use a HELOC to build a detached office or ADU?
Yes. As long as the funds are used for home-related improvements, this is a common use case.
Does HomeEQ allow draws in stages?
Yes. You can draw as little or as much as you need, when you need it.
Do I need an appraisal?
HomeEQ often uses digital valuation tools. In many cases, a physical appraisal isn’t required.
How long does it take to get funds?
Once approved, most borrowers receive access to funds in 5–7 days.
Will my property taxes go up?
Possibly, depending on your location and the size of your improvement. Consult your local assessor.
Is this a good investment?
In many cases, yes. A quality backyard office or studio can boost your home’s resale value and appeal to remote buyers.
Building freedom and value, right in your backyard
As work-from-home becomes a long-term norm, building a dedicated space to focus and create is no longer a luxury but often a smart investment. A HELOC provides the flexibility and affordability to make your vision a reality.
Whether you’re a freelancer, remote employee, or creative professional, using your home equity through HomeEQ can help you build the office or studio you need, on your terms, on your timeline.
Ready to get started? Check your HELOC rate in minutes and take the next step toward your backyard transformation.
