I am considering putting a bid on a 1 bdrm 1 bath house for the maximum FHA loan amount that I’m approved for. With 3.5% down, the LTV ratio is 96.5%. I really want to add a second bedroom and bathroom for the time our baby gets older and needs more space. I figure I need about $30-50k total. Adding the new rooms would likely increase the property value by $50k-100k or even more.Unfortunately, I do not have the money on hand, but have the budget for an extra $200-300/mo for a loan payment. This means a unsecured home improvement loan would likely be too costly.I was wondering what other options I have.Also, I was told there was a way to get the house + potential improvements appraised, then get a loan based on the potential increase in property value. Is there truth to this?