If you have to borrow, you want to do it in the least expensive way. Use caution when using credit card borrowing because of interest rates. If you borrow money for the improvements, you should go to your bank or other lender and apply for a loan. After checking to see if your credit is satisfactory, the lender defines the terms of the loan and you must agree to them before signing the note. Do not proceed with home improvement plans until you understand all of the costs involved.
Today there are a number of good plans for financing home improvements on reasonable terms.
What kind of loan is best for you depends primarily on the amount of money you need to borrow. If the equity in your home is limited, the answer may be an FHA Title I loan. Banks and other qualified lenders make these loans from their own funds, and FHA insures the lender against a possible loss. This loan insurance program is authorized by Title I of the National Housing Act. Title I loans may be used for any improvements that will make your home basically more livable and useful.