The agency has begun a second test, which will be completed in January 2012, measuring the volume of smaller particles, which could go deeper into the lungs and cause more extensive damage if breathed in.

BBC: Wood dust protesters march from Mossley to Plevin plant

If the damage to the house isn't too extensive, a better alternative is a streamlined Federal Housing Administration 203(k) loan, also known as a "limited repair" loan.

WSJ: How to Finance a Foreclosed Home--WSJ House Talk