I believe that the house is hugely important. You will spend a lot of time in it, more than you might expect. Even if the time you spend is sleeping, planning the activities of the day/week, or entertaining. You need to enjoy the features of the home you select.
So, I say stay within- or maybe an inch or two just outside of- your limitations but purchase the house/floor plan that feels the most comfortable to you and your personal lifestyle.
If you are able to, expand your home's footprint as much as you can afford
and what the homesite permits. Bedrooms, lanai, garage, golf cart garage...whatever!
Splurge on buying extra space first, not "stuff". You can always purchase upgraded furnishings, counters, appliances, etc. sometime down the road but you cannot (usually) buy extra space!
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