Financing a home addition can be done through various methods. Home equity loans or HELOCs offer secured borrowing against your home with fixed or variable rates. Cash-out refinancing allows you to refinance your mortgage and take out extra cash. Personal loans provide quick funds without collateral but at higher interest rates. Construction loans cater specifically to building projects, while credit cards can cover smaller expenses, especially with 0% introductory APR offers. FHA 203(k) loans combine purchase and renovation costs with low down payments but have strict requirements. Alternatively, using savings avoids debt but may delay the project. Consider interest rates, repayment terms, loan amounts, risks, and eligibility to choose the best option for your needs.