Maybe in the next recession it will be easier, but it is the fundamental issue with building affordable housing.

In most states, the insurance companies have to file their underwriting guidelines stating what guidelines are used to determine if a risk is eligible or not eligible. 

Thats a very thorough answer. i didnt know there was a criteria for the second tier of eligibility for the VA loan.

Your duplex would not be eligible and they would not have written you. 

Nashville, for all of the hype, does have solid fundamentals but like Matt said - there is development everywhere.  

My understanding is that in addition to income requirements, minimum credit scores, etc, in order to qualify for FHA or Dream Maker loans, you must be a first-time homebuyer (defined as someone who has not owned a home in the previous 3 years) thus you may not be eligible for Dream Maker loan either. 

Income production is not a requirement to be eligible for 1031.Where you'll have issues is that Pennsylvania does not recognize the 1031 exchange for deferral of state taxes.  

Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs; Making insurance available for both mortgages and home rehabilitation – HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage.

You may not be aware of this, but you might be eligible for truly self-directed Solo 401k plan (you need to be self-employed or own a small business w/o full time employees).

Fundamentals will always paint the picture.