The policy must provide a minimum of $[amount] in liability coverage.

As far as financing what would be a good loan?  

I've asked this seller for any documentation he had and he's yet to provide anything.

Since you’re building from the ground up, a hard money loan can be a great option because traditional banks tend to be slow and have stricter requirements for new construction.

If you're worried about cashflow, why would you do a 15 year loan with a higher payment -> meaning negative cashflow?

As a loan officer, I recommend first ensuring you have a thorough assessment from a contractor who specializes in fire damage.

@Richard Schubert can you get a 401k loan?

This is an Interest only loan product that typically lends at 65% ARV. 

If so I'd be happy to provide some insight on financing in the U.S.

Get it under agreement for less than asking price and offer to bring the loan current and have them carry that loan.The way I see it is they are just getting MLS properties under agreement - the last five I looked at had been sitting on the market for more than 150 days (overpriced) because the payoff of the loan would not be satisfied at lower price point.