And that's OK, because that's how something as important as a person's housing security should be treated in a just world.So you don't need to take the weight of the world on your shoulders, Ted.

You'd have rental income to help secure a Heloc. 

“Prohibited transactions” include:Selling something the IRA owner already owns to the IRA.Buying something from the IRA.Being compensated by the IRA.Extending credit to the IRA.Having personal use of the assets in the IRA.Pledging the IRA to secure a personal loan.The reasoning behind these rules is straightforward: They prevent any “funny business” with people attempting to create a non-retirement benefit from their investments or to pay non-market values for assets to rig deals to benefit their families.

I have a new tenant that signed a lease and paid a security deposit. 

All stations are securely fastened to the perimeter.

If that is the reason you are having trouble securing that FHA loan than you have to get rid of your current FHA loan to move forward.

What type of loan is possible with this if I am unable to secure full price purchase? 

If the lease is terminated, the tenant is entitled only to a pro rata refund of rent from the date the tenant moves out and to a refund of any security deposit otherwise required by law.

Are there pros and cons beyond just the level of security between having a contractor list your LLC as a certificate holder as compared to being additionally insured?

@James Godbout this is why you get estoppel letters from the tenants disclosing rents, security deposits any verbal agreements with landlord.