The loan is with you, not with your tenant, so none of that means anything to them - in fact because you live in one unit and it's under 4, if you were self-managing you don't even have to abide by fair housing laws (at least on the federal level). 

I'm hesitant to give up my conventional loans on the next cash out refinance for DSCR loans.

My mother-in-law is saying that my wife needs to sign off on the loan.

More on DSCR loans: DSCR loans won't use your income to underwrite the loan. 

Quote from @Vince Scipione: Standard would be an FHA loan for your situation more than likely.

Lots of loan options can close in an LLC, helocs usually need to close in your personal name.

has anyone had positive/negative results in dealing with a company called 212 Loans?

@Kayla Elliott  Hi Kayla - this was a commercial mortgage loan with a local bank, that held it "in house" after it was issued. 

Quote from @Sri Reddy: We are a team who are venturing in to constructing a multifamily unit from groundup.We don't have any prior experience in construction and are looking for financing loan options.

The best option would likely be a construction loan, which can cover both the purchase of the land and the build.