I would get the insurance in my trust name.

We've sold 65+ homes and the biggest request we get from our Buyers is help with closing costs.Most of our deals we're providing anywhere between $5K-$10K to help Buyers offset the cash requirement to purchase a home.Even in today’s "high" interest rate environment, many Buyers prioritize closing cost assistance over an interest rate buydown.

You said that you are applying for an FHA loan so it sounds as though you'd be living in one unit. 

Getting the right tenant in your home is key.  3. 

Quote from @Max Pergament: Quote from @Matthew Irish-Jones:Licensed and insured to manage third-party properties. 

Many insurance companies do not allow adding a landlord as additional insured.  

You payment is $2,600 plus tax and insurance.

Imagine a 4bed/2bath home with a small ADU in back, a converted garage with a private entrance, or a three-level home with a basement that can be converted into a private apartment.You can get privacy and house hack, but it takes a little more effort.

This is not uncommon and actual more typical as it is based on sales price and even though the first appraisal was $130k the new one gets reset based on its recent sale and home prices are not up 10% over a few months.You are going to have a hard time getting a lender to use other comps compared to this home as it recently sold.

Insurance call around and get quotes.