Probably meant to mention Bill Mitchell, If there is no Realtor involved you could make it out to the seller AND the escrow agent (title company or attorney) if you are working directly with the seller, have them endorse the check and then deliver it to the closer as earnest money is consideration paid for the contract.

I have not used them myself, so I cant endorse them at this time, but thought I would pass the info along.

@Jonathan Tavarez Zoning is not a title issue except in commercial transactions where a zoning compliance endorsement may be requested — or when the violation is already a lien or public record.

I know several companies that have special endorsements for "rooms rented to others".

Is there a specific endorsement for this strategy?

They may have to endorse the policy for the additional use or they may not.

@Dylan McLauchlanLove this quote and will use it and I endorse it: At the end of the day if a deal will make you money, and is worth the headache take Nike's advice and "Just do it."

Feel free to DM me if you need a lender recommendation, or take a look at the FHA 203(k) endorsement report to see which lenders are doing substantial FHA volume.Good luck and please keep us posted on the progress of your search!

I believe that while it is sometimes a title searching practice to come off a prior owner's policy (not one I endorse), doing it off a mtgee policy (which the 2013 policy would be) is generally not an approved practice.

Its possible the existing policy may be cancelled if you are doing construction there, it could be unaffected, or you may be able to endorse it for the new exposure.