As a loan officer, my first suggestion is a simple Home Improvement Loan. It would be in 2nd position to your first mortgage. The rate would be a little higher, but you wouldn't be stuck with the rules that attach with a Texas Home Equity Loan. There is a saying in the mortgage business: "Once a home equity loan, always a home equity loan." Whenever you wish to refinance that equity loan, you'll have to wait a year since the last one. And if you want to roll it in with your first mortgage to get a better rate, the whole thing will become an equity loan.
There might be good reasons to do an equity loan though. Perhaps you'd like to pay off other debts which carry a higher interest rate and whose interest isn't deductible.
There is also an excellent loan called HomeStyle. It would allow us to refinance your first mortgage (if the rate it higher than market) and add in your improvement plan. Heck, you might even need an FHA 203(k) renovation loan.
So my recommendation is to contact an NMLS licensed loan officer for guidance. If a home improvement loan, the HomeStyle, the 203(k) and the Equity loan aren't included in the options suggested, then you should talk with another one. They won't make much commission on a small improvement loan, but it they don't suggest it to you, they only have their own best interest in mind. . .not yours.
It's complicated, isn't it?
Licensed Mortgage Loan Officer
NMLS # 228545