Tips on creative renovation financing?

[Mary Firmin]

Hi guys! Real newbie here and under contract to buy my first property! So pumped!!

It's a SFH with an addition of 280 sq feet in the back that I want to turn into a studio apartment; I'd live there and continue renting out the 3bed/2 bath house to the current tenant whose lease runs out in December. My question is: has anyone gotten financing with a renovation rolled into the mortgage?

I spoke with a lender today and she said that type of product doesn’t exist, but the studio will need to be gutted to turn it into a livable space. Anybody have any advice?
Obviously I’ll be talking to more than just that lender, but I thought I’d ask for some experienced insight as well :)