Can I qualify as a First Time Home Buyer and utilize FHA or similar programs?

Down payment can be higher than primary, but the good thing is that you won't need that much income to qualify because lenders can you 75% of the market rents for the units of the property.

Both side said that my DTI was too high and I wasn't qualify to borrow.

If you have a rent property with good cashflow, odds are you are BETTER qualified for the next mortgage than if you sold the rent property.  

The last thing that comes to mind would be moving the funds to a rollover IRA and withdrawing them with help from your tax advisor or CPA to qualify for the first-time homebuyer exemption. 

Not all things you consider an expense are honored by the court.For example, in a Colorado Court of Appeals case, “the trial court found that the principal portion of the mortgage payments did not qualify as ordinary and necessary expenses for purposes of calculating child support.”It’s All In The NumbersAccording to the Census Bureau, “Parents who received regular child support payments received a monthly average of $604 and a monthly median of $396 in 2017.”

Does anyone have experience with applying, qualifying, or building with the Guaranteed Rural Rental Housing Program?

This will hurt the tenant's credit score, it will warn future landlords when they run a credit check, and it will prevent the tenant from qualifying for a personal loan, home loan, etc.

If you plan to house hack, you will want to qualify for a conventional loan for better terms.If you feel like youwill have a long term business plan or have a partner involved, then you should set up an LLC.

While they tend to offer lower returns than stocks or real estate, they provide stability and consistent income.Another potential avenue is health savings accounts (HSAs), which offer a triple tax benefit—contributions are tax-deductible, earnings grow tax-free, and withdrawals are tax-free if used for qualified medical expenses.