If you need alternatives then try posting in the New Jersey forum. 

Another alternative for the construction loan to the local banks is US bank. 

Here's an older link to  describe it, but it's really helping to fuel improvements and you're right, NEAR is doing great work there too.  

I ask this, for it to be an alternate to getting a partner or saving more to cover 100% of a downpayment. 

Is there a better way to explain this to the underwriter or am I better off looking for an alternative to HELOC financing?

What are some alternatives for free seminars that can teach me about real estate?

Alternatively, you could sell after the 2 year mark and take that capital and buy a house hack: a 2-4 unit property, live in one unit and rent out the others.  

A lot of your peers starting out will try and force buying somewhere where it doesn't work, then end up pushed out the game in a harsh manner because of failing to calculate alternative options that will set them up for long-term. 

Then you'll have the freedom to invest into alternative assets such as real estate, private lending, syndications, and much more.

An alternative would be an NPV analysis of each scenario, but I suspect the result might be the same for reason you have already stated - a high NOI valuation at exit.Cheers...