In this situation best way would be to have the contractor finance all the cost of remodeling or seek a stand alone construction/remodeling loan from lenders. Depending on your overall situation even FHA 203K home renovation loan may make sense. There is no lenders that I can think of that will simply give you a 100% LTV HELOC or Home Equity, most you may be able to get is 85 CLTV.
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Sanjeev Ahuja NMLS # 148731
Home Funding LLC
110 Jericho Turnpike Ste 214
Floral Park, NY 11001
Direct Ph 917-517-2552
NYS Registered Broker, Department of Financial Services, Loans Arranged through third parties NMLS # 885573