For a mortgage, if you are an employee of an LLC you own are you self employed?

[Michelle Svetlitski]

My husband worked an employee for a medical device company for 20 years. In September he opened his own company to become an independent distributor. At that time we did not consider the implications it would have for a mortgage. The company is an LLC with S corp designation, and he and I are both on the payroll. Our CPA said we are not self employed, but I believe we are still considered self employed for the purposes of getting a mortgage? We sold our home last year and moved into our investment property so we would be able to buy a house and pay cash when something came on the market. We are still looking, but realized we may need to take a mortgage if we can not find what we want in our price range. We have about $820k in cash for the home. If we wanted a mortgage for $180k to buy a home for $1 million is this impossible? Or could we get a HELOC on our investment home? The investment home is worth $475k and we owe about $78k. I just wanted to see if there is any possible way we can get a mortgage! We live in The Woodlands, Texas if that matters. Thank you!