I'm not sure what your financing strategy is for your early phases, but it will save you time and money in the long run if you're familiar with all your options now.

Make sure the higher interest rate does not offset what you are saving in PMI.Also the logic of paying more interest to save taxes is nonsense. 

I would go with a broker to save myself the time, effort and headache.

Save your sale, and shell out a couple grand to get this fixed.

I know I would lose $50k up front but over the long haul I would save at least that $50k in interest and basically cut my PITI in half and double my cashflow the next 30 years.

My husband and I found that checking outside our usual circle of family bankers and big name mortgage companies ended up saving a lot of money on fees and rates. 

The owner has already told us, however, that he will pass some/all of the realtor savings on to us and based on some rough numbers I threw out because of neighborhood comps, it sounds like he would price it to us below-market by 3-5%. 

He said it could cost me more in leagal fees than it would save me in taxes.

I am actively working on raising my credit score and my personal savings so that I can get a head start on financing.

Ultimately, my equity partner is a good friend, and time was of the essence.