Financing options for home addition- not heloc

[Theophile Alexandre]

Hi everyone,

I’m looking for some guidance on financing options for a home addition. I already have the building permit approved and ready to go. However, I had to return the original funds I had borrowed for the project.

Initially, I took out three personal loans with an average interest rate of about 18%. In hindsight, that was a mistake because I started paying interest long before construction could begin while I waited for the engineer’s drawings and county approvals.

I'm now looking for the best financing options to consolidate the project into a single loan with a lower interest rate, ideally based on the property's projected after-repair/after-completion value (ARV). The addition is fully designed, permitted, and ready for construction.

Has anyone successfully financed a similar project using a renovation loan, construction loan, HELOC, home equity loan, or another product that considers the future value of the home? I'd appreciate any recommendations, lender suggestions, or experiences you can share.

Thank you in advance for your help.

Theo A.