Home Improvement loan for addition?

[kellia]

We want to add a couple of bedrooms to our house. We've outgrown it (but like the location) also might end up with a parent moving in here. Problem is, since home prices have dropped so much, we don't have much equity in it. Do they still offer Home Improvement loans? Or can we roll it all in to one mortgage? Once it was done, we'd have equity, since dh can do a lot himself and he has a contractor friend who will work cheap. I just have no idea what kind of home loans are available anymore. Our credit union doesn't offer them and when looking online, I'm afraid some of those are scams.

Any advice would be appreciated!