I would seek legal advice concerning your compliance with this law before taking action against the seller.   

It was definitely helpful and assuring I’m on the right track.

The wholesaler assured us we'd only be paying our share of closing costs, but had agreed with the seller to pay their closing costs, overdue utilities, and excise tax!

It is very re-assuring to hear there are still great deals out there.

Doing a power wash once every year is the ideal way to assure your exterior is clean and represantable.

Get a second opinion if you think you're learning something.There is no difference between a cash funded loan, such as a purchase money loan and a loan funded by equity as to any loan origination or compliance exemptions, both are mortgage loans.

I'm certain that this is not your intention - you simply want assurances. 

@John Thedford I have heard that from multiple people in the past, but I've been assured they have fixed all previous issues that were caused by their claims department.

They specialize in avenues of this type, they can set it up pretty quickly, and they are able to make sure that you are in compliance.  

AL has low fees and light compliance for LLCs so the admin side is straightforward.