We had a super detailed letter from the dad-in-law on how the husband made a massive game changing contribution to the business, whole 9 yards, didn't cut it.We don't have all the details of your scenario, but when you mention dad as both employer AND cosigner, it starts to share elements -- "the dad obviously really wants you to get the loan or he wouldn't be co-signing, can we really trust those paystubs from said dad?" 

As far as her concerns with not being rented to by the new buyer, if she has a lease with you that has 7 months remaining on it then the new buyer has to honor that lease (though he/she can evict her if she is not following the lease rules).

Now, two of the common areas of concern for LOCs I see out there is the 10 year maturity date and the adjustable rate.

Voice your concerns on their social media/web forums.  

My concern is that there are no garages in any houses in my neighborhood.

Foreclosing ASAP is a way to get in front of that mathematical "certainty" and cut my losses.By contrast if 4% is a normal interest rate and 8% is "normal" annual appreciation, equity (ie, the safety of my position) is actually still going up each year.

My biggest concern is a 6 month vacancy during the summer.

Cut your expenses to scorched earth for a time to keep the condo!  

(Post should be viewed as theoretical and does not necessarily reflect our true financial situationYes college education fund does count as parent’s asset when determining the financial aid but that would be a concern low earners.Looks like you are already a high earner and every other asset will actually put you above the threshold before college education fund makes you disqualified.Most likely your kid is going to get a subsidized financial aid where he will incur interest right away.

Also, there could be a concern if you ever have to evict a tenant because in some states a tenant could delay an eviction by depositing any amount of money in your account, and if they had your account number you may not be able to stop them from making that deposit.