While section 8 is a federal program it is administered at the local level so different areas have slightly different rules.

Although there may not be any federal law on the issue of Section 8 discrimination, there may very well be local laws and ordinances that prohibit discrimination based on income sources.

@Abhijit JoshiFirst, please understand that, for federal income tax purposes, an LLC can choose to be treated as a corporation, as a partnership or as a sole proprietor.  

Hard money is actually cheaper.this is seldom talked about and very few people understand it. let me give you an example.say you borrow $50000 from your 401k. it needs to be paid back in 5 years.you pay this back, each month, AFTER taxes. let's say you are 25% federal bracket and 4% state so 29% in taxes. that's 14,500 in taxes!

Another downside is you loose on the advantages, of the Federal Tax Code, by closing in a LLC. 

Check NMLS in the Stares that require federal registration.

I have seen 95% LTV on owner occupied properties, through Navy Federal Credit Union, but only 70% LTV on investment properties. 

Another downside is you loose on the advantages, of the Federal Tax Code, by not closing in the name of a LLC.

I understand the Federal lending guidelines have gotten very strict in the last few years.

First Federal of Lakewood may work with you?