The bank has already approved me for a $446,000 loan with the purchase price set at $421,000 and I was estimating to giving him $5,000 after closing.

If you do not get approval with your local building department then it could cause you problems down the road whenever the home is appraised or when you go to sell or refinance.

This is at a pre approval stage so there is no real commitment until they submit an offer, sign and commit to a broker. 

Build a sample deal package, take it to lenders, get preliminary approval and establish a relationship.

For example, I think we are late cycle, so I lean toward the safest part of capital stack which is debt (or debt free equity).

In addition, large companies are now being approved to spend heavily in that area.

For example if the bank you are working with uses 80% loan to value and your house appraises for $200K and you have a $50K mortgage, they would approve you for a $110K HELOC ($200K * 80% = $160K - $50K mortgage = $110K HELOC).

I have read that LLC's can be approved for an FHA but would like to hear what the real estate community has to say about this. 

If so, great, otherwise you can just as easily 1031 in to a nice property near you (probably bringing in less rent but still no debt.) or you could use it for 1/2 down on two properties that would probably rent for more combined and have a low/manageable payment. 

I have been approved for a 390k conventional mortgage as well as a 375k FHA.