I would go with either Orange or Loan #1

In most cases, once you get the loan, and do not change the mailing address away from that newly bought property in six months, you should be alright. But, if you default in the future, then it is a fraud.

If you want to keep the house for a long time, I would go with loan#1. You always have the opportunity to do no cost refinance, so I would not want to pay more to reduce the rate.

Or, get a lower rate with the ARM.