I appreciate your response but you’re misunderstanding my question 

I certainly hope 5% to 15% does not represent just the insurance premiums… if the annual premium really is 10% of the purchase price there is something very wrong with the area or the property. 15% in closing fees, including prepaids but excluding the downpayment, does sound unreal as well…something is off here… It was a misunderstanding.

It sounds like there is a misunderstanding, but there's a bigger problem here.

@Jacob Ramsey you may be misunderstanding the loans being offered.

And you're misunderstanding how passive losses work- this isn't a Myth.

At that point, you can apologize for misunderstanding the situation and have them apply.

@Dan HedgesUnless I misunderstand your plans, Quicken offered to do that exact thing for me and of course, they are in your back yard in Detroit.

Insurance also doesn’t protect you from misunderstandings, especially those made in writing and email.

You don't want any misunderstandings as far as who handles which responsibilities......especially with family.  

This seems extremely harsh, so I'm hoping I'm mis-understanding something.