I'm sure there's some escape clauses in which you wouldn't get your premium back which would change the equation in favor of not paying the extra premium.

I have family ( brothers ) that are living in the home rent free; for the time being

sounds great my brother

I have found a property which I am meeting with the seller to sign the contract, but this will not be my typical contract signing as it will be my brother signing to purchase wit ha FHA 203K loan.  

I currently have another job with a new 401K so the old one is sitting idle and I have heard that I can use it to invest in real estate.My brother and I already hold a few rentals and my primary residence is a duplex so I'm familiar with landlording and finding good deals.

 $93,500, currently rents for $1200 (to my brother and his friends).  

Tampa, FloridaPros: My family (2 brothers, nieces and nephews, and my parents) will be there and if I'm living in the US, I'd like to live near them.

The catch is that I'm partnering with my best friend (fraternity brother, best man at each others weddings , I trust him with my life) who has some background in REI.

I bought the house for 85,000 with my brother (I first formed an LLC) with 25% down.

Tons of people with a wealth of knowledge on here.Blessings brother,