Brian Brady's Q&A

VA requires both Section One and Section Two clearance (per Cheryl in the Construction and Valuation Dept of the Phoenix Regional VA Home Loan Center, as of May 15, 2009).Ken is correct; this is a requirement for all purchases and an refinances (except for VA-to-VA Interest Rate Reduction Loans).VA loans are not necessarily a more lengthy process but the buyer's agent may be "hedging" for the termite work.  Many lenders, however, are backed up so the 30 day closing is becoming increasingly difficult.  A 45-day escrow should be reasonable and a 60-day escrow seems lengthy.

You can refinance your FHA loan.  There are two types of FHA streamlined refinance loans; both are available to California homeowners:1) Refinance without an appraisal:  Closing costs can not be added to the loan balance so they'll need to be paid in cash or subsidized through a higher interest rate.  Lenders are not offering the generous yield spread premiums, for higher rates, like they did in the past.  Expect to get a rate in the 5.375% to 5.625% range and have to come up with about $3,000 out-of-pocket.20 Refinance with an appraisal.  This could lower your interest rate to 5% or below (today).  Closing costs can be rolled into the loan but you're home with have to appraise about 3-5% higher than the purchase price.  Lenders typically default to the purchase price when purchased within a year so this probably won't work.Option 1 sounds like your only bet.  If you drop your rate by 1% and it costs you $3,000, in cash, your "breakeven" point will be about 13-14 months.  If you plan on sticking around for a while, and you have the cash, it should be relatively easy.

I answered in your previous question

There are still a few lenders offering first position Home equity lines of credit.  Generally speaking, you can't borrow more than 75% of the home's value and they will have a pre-payment penalty.  I funded one three weeks ago, in CA.The pre-payment penallty can be waived for a fee.You'll need to have excellent credit and verifiable income.Rates range from Prime plus .25% to prime plus 2%.

perhaps the owner could post a picture