option 2

Option 2, in anticipation of the tree eventually growing much larger than illustrated.

As I commented in your other thread, account for the mature size of the plant while designing. I think both options are too close to the house but if it had to be one of these two, I'd choose the first. It could be worked with.

yardvaark, i was hoping to keep it pruned to half its mature size which would be 10 feet. Do you think that's possible?
Don't have much tree experience..

Anything's possible. But after observing many years worth of landscaping I speculate that, in general, when it comes to trimming, people have a tendency to let things go. They get busy doing something else and before you know it, the "whatever" has escaped control. Or a change of ownership facilitates it. Though I'm generally a believer in siting plants so their nature can flourish, I'm also a believer in breaking rules when there is reason and commitment. Only you, Mean, can know.

Two

Option 1. It gives the backyard some screening and won't block the pretty window, your home's focal point. It balances out the garage by adding some bulk at the opposite end of the house, and you want that at the edge, not within the parameters of the house. Think of it as a scale with the house as the fulcrum. It looks like it's positioned closer to the street than the house, so it might need to go back a few feet.

When you say controlling the height, are you talking about topping the tree?

I somehow mixed up the photos. Plant the tree AWAY from the house, not close. Personal experience. They look so small and innocent when still in the nursery pot. ;-)

I would not count on being able to keep a tree half its mature size and still have a nice looking tree unless you are skilled in bonsai or are willing to pay every year for a professional pruning.

yes May. thought to top it in a few years. i like your fulcrum analogy. figured closer to street to give house more depth as opposed to one linear focal point. not sure..

catkim i hear you on pruning but thought it's probably gonna be at least 5 years before i do that so hopefully I'll be rich enough to get it done professionally. :)

I don't mean moving it way back in line with the house, just so it's closer to the house than the street.

The topped trees I've seen are not too attractive.

I agree with the points made by Yard, May and Catkim.

If you want a 10-foot tree in that location, then buy a tree that will be 10 feet at maturity.

During a quiet afternoon on Master Gardener Helpline duty recently, I pulled out a book that happened to be a training manual on pruning for the Certified Tree Expert exam. According to what I read, no self-respecting arborist who values his reputation would top your tree ... and other methods of maintaining it at half its natural size would be expensive, labor intensive, with possible adverse effects on the tree's long-term health, and might not give satisfactory results anyway.

Ok. You all are convincing me. Any nice 10 foot trees with a white bloom that you can recommend?

Maybe I should just put the loquat in back yard..?