Ok so buy and hold the home is my best option then.

There are a ton of options for your primary residence to ensure you can pay down your mortgage (while living there) and make it a viable rental when you move into a future place.

That land doesn't convert to cash for a downpayment, unless its encumbered or sold and no institution is going to lend on a $20M piece of property.

If you have an "early buyout termination" clause in the lease he is free to use this option. 

It's a pretty comon source for private lending since those with self directed IRAs are typically looking for alternative investments to place funds in.

For example, Clarksville, TN (outside of Fort Campbell military base) could be a great option.

However, I'd be curious how the second position lending would impact buyer's option for assumption.

Our only other option was to reject her as a tenant. 

To reiterate above, the variable rate is not the issue, it's the attempt at new terms with punishment attached if not accepted.FWIW, if I recall correctly from 5 years ago, my loan officer casually mentioned that the loan will be "in-house" which I understood him to mean is not a federally backed loan and they are lending directly, but I didn't ask for clarification.Maybe my loan address was included by mistake for this mailing because of that categorization, but still, gahh.

In light of these circumstances, I'm seeking advice on the best financing options to address this costly project if insurance coverage falls short.