forming LLC for funding?

[Nathan Helm]

Hello BP community, I am in the works of buying my first investment property (owner-occupied house-hack). I just talked to my first mortgage broker and he is wanting me to set up an LLC so that he can have the docs in order for him to give me a pre-qual letter. Starting out, I didn't think forming an LLC would be necessary, especially since I don't have much wealth to protect or equity in the property. What do you guys think? Is this a common request from mortgage brokers? If so, why?

Also, on the same subject, this broker is wanting to set me up with a "construction loan" which will last as long as 6 months at 10% plus interest. I would then refinance after the construction. BRRRRRRR...Sounds like hard money to me which I know can be high risk especially for my first deal, but what other options do I have? I have a chunky down pay and good credit but scattered self-employed income since I'm a student.