My question involves real estate located in the State of: California

I went under contract to purchase a new construction home in April 2009. At the time we put 1,000.00 of money down to open escrow. Upon closing on the house I would be getting all but 1.00 of that money because the builder was promoting 1.00 escrow for VA loans. I negotiated 3.5% from the builder to put towards upgrades. I used 9,200.00 of the money. The original purchase price of the house was 445,000.00 when I went under contract. In late July the house was appraised by a VA appraiser and he appraised the house at 375,000.00 The builder is now not wanting to sell us the property at that price. When I went under contract the sellers agent said we would not receive the 50% down on incentives I was required to pay on all upgrades chosen. When I close on the house I would receive all that money back. Now it looks as I won't close on this house due to the low appraisal, which the appraiser will not budge, and the builders refusal to sell the house for that price. This builder has already delayed the end of construction from June-July time frame to August. The new appraisal dilema is now threatening to push this thing out even longer. I am in the Navy and have to deploy shortly. I needed to close on this house before I deploy; which now doesn't look possible. So I want to cancel my contract and receive all monies down promptly from escrow and from the builder I put into this house. However, the builder mentioned in initial contract talks, but no documentation of this in the contract, that I would not receive my 50% down on upgrades money back until they closed with someone else if I backed out of the contract. I am only backing out because the builder won't sell me the house at the VA appraised price. Is there VA/ FHA rule even with out signing such a thing at contract time that protects me and allow me to back out, and receive all my money down immediatley if the builder does not honor the VA appraised price?