Thanks Dave,
I used your information to order a faucet. Max height is 6" with valve close, open it's 6-27/32. We don't have a sprayer So I order a Pfister that had a sprayer only using three holes. I will have to play with the pipe ends since the new faucet the pipes connect in the center. I'm thinking removing the water heater might be the answer to work on it.
Here is the one I ordered.