The LLC is irrelevant unless you are paying cash or getting a DSCR loan.

You have VA loan eligibility, you have (I assume) a service-connected disability check every month which you would use as your income.

So we retired the sellers loan within 12 to 18 months.

Many banks securitize their loans (bundle them together) and sell the loans to Fannie Mae or Freddie Mac, while continuing to service the loans, that is collect your payment.

Is it hard money loans, angel investors, etc?

A bank will not give you the $ as you have to show ability to repay the loan. 

FHA loans typically require the property to be a primary residence for at least one year, so he should confirm compliance with his lender.Once rented, he can deduct expenses like mortgage interest, property taxes, maintenance, and depreciation starting from the date it's available for rent.

At the current scenario, without knowing anything about you or your properties I will recommend either to look at a loan from your assets using DSCR loan.

Sounds like you are getting hit with a lender who has overlays and possibly miscommunication between the loan officer/processor to the underwriter.