An FHA 203(k) loan, allows you to roll the cost of home improvement projects into a single monthly mortgage payment by refinancing your current mortgage. The amount you borrow is a combination of the price of the home and the estimated price of the repairs, including labor and materials. 

203(k) loans are guaranteed by the Federal Housing Administration (FHA), which means lenders take less risk when offering this loan. As a result, it is easier to get approved (especially with a lower interest rate). This is a huge advantage over using a credit card or taking out a personal loan, both of which have higher intertest rates and shorter repayment terms.  You should know that for every $1,000 in upgrades you finance, you’ll add about another $6 a month to your monthly house payment.