Get thee to a lender! Since no man is an island, ask for a referral of family, friends, or your wife's co-workers.
As far a the loan goes...I suggest an $100,000 FHA loan.
There are three reasons:
1. HELOCS often have a variable interest rate. Get a fixed rate FHA loan.
2. $100,000 instead of $65,000 gives you $35K in the bank - a cushion should you need money in the future. You can pay it back if you want.
3. $100K FHA because lenders often charge a premium if under $100.
I could go on and on about why a full blown FHA mortgage is the best option if you can get it, but that conversation is best left to your lender. Price both and make your best decision.
Wishing you good health!