How co-op boards view ARMs

Getting some slightly scary warnings from people about which mortgage to choose with respect to a co-op board's decision on me. some background- this is a large building, the apartment is <400k, and I am well-qualified with respect to finances IMO. Now, I plan on being in this property for approximately 5 years. I know 'anything can happen', etc etc but I certainly think its fair to at least... [more]

Getting some slightly scary warnings from people about which mortgage to choose with respect to a co-op board's decision on me. some background- this is a large building, the apartment is <400k, and I am well-qualified with respect to finances IMO. Now, I plan on being in this property for approximately 5 years. I know 'anything can happen', etc etc but I certainly think its fair to at least make the assumption. The difference in rates I can obtain is significant when looking at a 7/1 or 10/1 ARM versus a 30y fixed. Knowing that I will not be in the apartment at the time the rate will likely rise, I am really not making a risky financial decision or thinking I can outsmart the market- I simply will save a substantial amount of money over the time I am in the unit with an ARM. To me it is a sound, defensible decision. But do many boards view short term ARMs as risky, or revealing something unstable about the prospective buyer? Is it basically also a signal that I do not intend to be a long-term owner/resident in their building? Should I attempt to hide this fact? I wouldn't think so, but would like some educated thoughts.. Thanks. [less]