I have been offered the loan I would like but need to pay a sizable insurance sum.

Insurance paid the first time & yet the city wouldn't address the ongoing sewer issues.

Quality insurance for the IRA is therefore a must. 

So rather than be approved for a set loan amount, you are really approved for a set monthly payment that includes taxes, insurance, etc.

It is also 50' from designated wetland.With that information, is this property a good candidate for title insurance, or could I get away with not opting in for title insurance?

I'm no planner but I will give it a go.Looks like you can have 50% lot coverage with a .4 FAR (2,000 SF of building).

That is simply because they are higher risk for the lender since they are not insured by a government entity and the lender will demand to be compensated for that risk. 

Typically, the documents included are: Annual Financials, Articles of Incorporation, Budget, Bylaws, CC&Rs, Insurance Declaration Page, Regular Meeting Minutes, Resale Certificate/Demand, Reserve Report, Rules and Regulations.

House Hackers Who are you using for Primary Home owners insurance?

So for example if you buy a house, it will mention the payments you're going to make as well as tell you your obligations such as being required to have insurance etc.