If you don’t have cash to pay for your project and you have equity in your home, the least expensive way to obtain financing is to apply for home equity line of credit (Heloc). Home equity line of credit will have the lowest interest rate compared to other loans. To obtain $50,000 heloc should cost you less than $1000 in bank fees, or if a bank runs a promotion, it can even pay for all origination fees.
Second option if you have equity in your home is to refinance your mortgage and roll in the cost of your project into a new mortgage. You might save on the interest rate compared to Heloc, but refinancing of the whole mortgage may cost you 1-2% of your total loan balance. For example 300k loan will cost you $3000-$6000 to obtain.
Third option is more costly, but it works when you don’t have enough equity compared to other two options. We have several banks that can provide construction financing for you if you don’t have equity in your home. The interest rate on such loans is much higher than on Heloc and it ranges from 8%-12%. Please ask your estimator for details.