Some quick points:FHA is great for buying properties that have multiple units (up to 4) when you're going to live in one.You can do either a 203K renovation loan or regular FHA insured loan.FHA is not only for first time home buyers.  

They include loan payments, taxes, insurance, utilities, and any other costs that occur during the Rehab period and up until the property is fully rented.  

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?

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?