Can I technically borrow on my mortgage free condo in California to purchase a second home in Georgia?
Yes, not only can you draw on the equity from your California condo, but you will also enjoy some tax advantages from it. Be sure to consult a tax advisor for further explanation on the subject. HELOC's are a great way to borrow against your condo, but with rates on first mortgages as low as they are, a...

my husband passed away can we transfer the mortgage?
More than likely, you will need to consult with an attorney. Property will USUALLY transfer from one spouse to another, but not without a probate process. Once the probate process is complete, you can then proceed with a refinance option, if needed.

Can income from my business (11 months old) count toward mortgage
You will have to qualify for the mortgage using the salary from your full-time job only. Once you have been in your self-employed job for two years, you can use that income as well.

Mortgage on a rental property
Most "mortgage lenders" have a minimum loan amount, including my bank ($50,000). Your local community bank may be willing to lend you the $40,000 you're looking for. Good luck!