The HELOC may be useful for temporary financing like an acquisition and rehab then you would want to pay down or off with permanent financing that would be fixed or at least fixed for a certain period of time.  

Levies that will continue to qualify for application of the rollbacks are levies approved at or before the August 2013 election, inside and charter millage as they appear on the 2015 tax list, renewals of the qualified levies, and the substitute of qualified school district emergency levies under Revised Code section 5705.199.The rollbacks are now referred to as the Non Business Credit and Owner Occupancy Credit.Homestead Exemption:Property owners residing in their home who are aged 65 or older and/or permanently disabled may be eligible for the Homestead Exemption.

Getting it permanently removed would be ideal.

They would lend the 40k required on a draw type setup and roll into a permanent mortgage once the project was complete. 

On my last build, the appraiser came out to due the appraisal for my permanent financing (to pay off the construction loan) and we were switching over the power to the house from temp power to main power, and the appraiser noted that to the bank.  

However, repairs or improvements must be permanently affixed and add value to the real property.Costs and Escrow Accounts The costs of the renovations will be based on the plans and specifications for the work and on the Construction contract for all of the work requested by the borrower.

That $4050 is likely to be enough to cover the cost of the refinance that was unavoidable because you're purchasing with FHA.The risk here, that absolutely must be highlighted, is that the 6 year long era of historically low rates could end while in your six month purgatory, waiting to lock in your permanent financing.

Then you call me cursing out your brother-in-law asking me to fix it or offer you a term policy, whatever is cheaper and get mad when your new term policy is more than the permanent policy you couldn’t spend an extra $25/ month to keep cash flow positive. 

If people are getting a relatively steady increase in their home value - they are more likely to make a intermediate jump once they pay down their mortgage some - but I would guess move less often since the moves are based more on needs than expectations of a big pay-off.Markets like New York City and the Bay Area seem to have a permanent housing scarcity, so they definitely don't behave like "normal" markets.    

What time of year will it need to be planted and are you looking for a temporary lawn or permanent lawn?