Need Help with a rental and purchase

[Debra Muth]

I am new at investing and am trying to find a way for my daughter to keep her first house that is 685 sq ft 2 bedroom as a rental and buy a second house. The bank is saying because she has an FHA she cannot keep the first house and buy a second with an FHA. I thought you could have up to 10 FHA properties now. She has lived in the first property for over a year so she can sell. She doesn't have 20% down for the next property and doesn't have 30% equity in the first house which the bank is saying she would have to have in order to make this work.

I am sure someone knows how to make this work. What am I missing here?