A. No. You can use FHA home loans as many times as you desire when buying a home or doing a mortgage refinance. The only guideline is that you cannot have more than one outstanding FHA mortgage loan with a loan to value of higher than 75%. You can own rental property and purchase your primary residence using FHA mortgage financing." Does this mean I would not have to refi my current home and I could actually have two FHA at once???
In virtually all cases, lenders are requiring a transcript of your tax returns from the IRS BEFORE settlement. If you are not reporting rental income, then it will be noted by the underwriter and your loan application will most likely be denied.
Further, if you do not have at least 30% equity in your rental property, then you will NOT be able to use the rental income to help qualify for the second home. You must be able to qualify for a new mortgage with BOTH mortgage payments. Additionally, as you already have an FHA Mortgage, you can not get another FHA mortgage unless you pay off the first one.
Most likely, your only options are: 1) sell the current home and buy another, or 2) keep the current home and rent.