I did not know that before the appointment, but saw the issue as soon as I stepped inside the door.

Can I include something in the Rental Agreement where they would sign, acknowledging the stair issue and that we are not liable? 

Here is a link that describes that issue in part. https://www.rocketmortgage.com/learn/fha-identity-of-interes...If this is meant to be your primary residence, why not deed the lot over to into your name and do everything in your own name?

all these millionaire using leverage and creating low debt for themselves.All CEO issuing stock options, issuing corporate bond , stock buyback is all about creating low cost debts.

There are some extended form policies that might cover a future forged deed, but they cost extra and since title fraud (not theft since you can't lose title based on a forged deed) is uncommon, they're not issued frequently.

Does anyone think that by going the route of using insurance for the new roof will cause a long term scaling issue?

Again, the issues here would be if those properties were structured incorrectly or filed incorrectly....but I think it would certainly be worth having a conversation with a different lender about it.

So I figured getting people who are more knowledgeable about the process should help avoid those issues.  

Posting one time in the forum which most closely relates to your topic will help you get more response.

No mortgage will be issued for greater than their underwriting guidelines including Appraisal and a percentage of that Appraisal.2.