Traditional Landlord insurance from the typical companies like liberty mutual and statefarm or some kind of commerical insurance is better? 

These are double wide homes that would be attached to the permanent foundation (on owned land, not in a park) and that the investor would look to sell right away to people that would occupy the homes as their primary residence. 

Often nicknamed a "Kiddy Condo Loan", it's a great way for parents to get a property for their kids as a primary residence.Regarding the debt-to-income ratio, that is a genuine concern and something you would need to consider. 

Of course, you won't be able to see if they owned any other property since that would require a search by name option, but at least you will know if the primary residence is a possibility.

Background:I am under contract for a 3 unit property and have traditional financing available but have thought about the idea of asking a family member to loan me the money instead.

I bought a primary residence last October that I planned on renting out come this October (next month) and would love some advice from more experienced folks on my next steps, because I came up with a few options. 

@Robin CastilloLLCs are useful for legal protection, but they require separate tax filing, typically cost several hundred dollars to create, and most non-commercial lenders will not lend to LLCs.Commercial lenders will lend to LLCs, but their interest rates are significantly higher and they require collateral that regular lenders don't.I would not create a LLC specifically due to the issues in getting a traditional mortgage it will likely cause.One potential route though, is to get a traditional mortgage in your name and then assume the loan after a 6mo "seasoning" period with your LLC.

Some people do extremely well with section 8 but if you are diving head first into it, you may want to start with a traditional rental first to get a feel for it. 

A lot of lenders will only let you do it if it’s your primary residence and i’m trying to avoid that.

@Michael Upson is this for your primary residence or an investment property?