If you are owner occupying a four unit or less property you are exempt from the federal fair housing acts.

I recently got a HELOC on an investment property through Navy Federal.

He has scholarships and federal unsubsidized loans that cover full tuition, fees and some room and board...but not all.Prob going to need around $20k for college.I have secured a $30k loan using the property for collateral to cover the college expenses.What would you do with the $30k?

Remember at the end of the day the banks are told what to do by regulators at the state and federal level they may love you but they may have to take orders from on high. 

When you sell the house, the government is going to make you pay back that benefit in the form of "depreciation recapture".

Taxes and Other Government Fees. $48E. 

These agencies have specific directives as government backed entities, one of which is to promote home ownership (as opposed to commercial lending).

VerifyInvestor - https://verifyinvestor.com/ - resource for verification of accredited investor status as required by federal laws.

There is some talk that those are going away starting this tax year, but I received one with my VA loan and it has saved me thousands in federal taxes over the past 5 years.If the lender cannot do an MCC for you, than don't use that lender.

the cons of this building is that it has tenants that are smoky and stayed there for long time, some of them are paying through government assistance which I really don't know if this would be a bad idea or what, the unit that might fit our growing family as we are now three and expecting a baby soon!