I’ll make my suggestion later, but first, I need the terms of the ARM offered to you by the REO lender (index, annual cap, life cap, margin). Is it an option ARM? And if I understood you correctly, its first recast is at the 5-yr mark??

That’s awesome, Doooh! Congratulations on obtaining your custom spread in SD County (with newer construction to boot)! Spec builder/previous owner’s loss is your GAIN! Obviously less than build-price (even w/o the land). I don’t think you will ever regret your purchase!!