Of course the OP received the funds but the point I would argue is that if the OP received in Jan and not Dec in his bank account.

First, banks do not prefer W2 income over 1099 income at all.

He is very good about deductions on tax returns so his income looks negligible and of course banks wont talk to him about loans.

Alternatively, if the bank ( assuming there is a bank) is fine with it, you could negotiate a credit and escrow the funds to be released after you do it yourself.  

It would be far simpler to put the $500,000 in a bank account owned by the LLC and you immediately own a fixed percent.

If you go with the partnership route1) You need to manage the money going in and out of the business bank account.2) File a partnership return and be responsible for issuing K-1's3) make distributions to you and your partner for cash flow that you receiveYou will likely spend many hours on a nice gesture.I may want to consider instead to give a christmas gift or a bonus for early completion of projects.

I've also used traditional loans through regional banks and a few SBA loans. 

-Local banks were the best.

You might find a local credit union or community bank that will go to 95 -100%.At one point I called 2 different VA Regional Loan Centers regarding this section in the VA lenders handbook:Assumability - The second mortgage should not restrict theVeteran’s ability to sell the property any more thanthe VA first mortgage.

At some point, the juice isn't worth the squeeze for us and we just want to enjoy life.