Texas refi/cash out to put in a swimming pool

Hi lanie

As far as I am concerned, I think the lender is correct in saying that. You cannot cash out in order to add a pool to the property or improve home according to the Texas laws. To know more about Texas A6 laws, check out the following link:
http://www.mortgagefit.com/texas/a6loan-law.html#23849

Thanks.

I guess I don't really understand. The link you provided says that the funds can not be directly paid to the contractor from the cash out. If I put the cash out in my bank and then pay the contractor, that is not being paid directly. Why would I be able to pay off "debt" with it but not put in a pool? Wouldn't the pool be considered "debt" if I owe the pool people and tell them I am paying cash? One lender is telling me no, and the other is saying yes. They want me to go ahead and pay for the appraisal and credit report, but I don't want to do that if it is going to end up not being able to be used because the loan is not possible.
Thanks for the help!

The pool will be added to the home so it will be considered as an home improvement. And I believe according to Texas refinance laws, you cannot improve your home with the money you get from refinance.

You can obtain a Texas Cash Out refinance for home improvement or debt consolidation up to 80% of the value of the home. It will be listed as a Texas Cash Out loan and not as a home improvement loan. Most lenders require disclosure of the use of the cash out; however, home improvement is an acceptable reason. We process about 100 loans a month for this purpose.

Google FHA 203B and FHA 203k, it is spelled out by state what can be done.

[Link deleted as per forum rules. Thanks.]