I was wondering if anyone here had any experience the homebuyer assistance program.

My concern is the self-dealing nature of your strategy. 

Jon Dorsey and all,Thank you so much for the advice and assistance.

Hey @ShawnBowen I will pm you shortlyThank you for offering your assistance!!

I have no worked a w2 job in about 2 and half years due to be being self employed.

And then using what's left to payoff probably relatively low interest loan that you have on your rental and loosing interest write off deduction doesn't sound like a wise financial move...Why don't you consider setting up a self-directed IRA, moving your Vanguard IRA in there and then invest passively in trust deeds (or some other alternative assets).

Do not listen to a loan broker who wants you to create a blanket loan and not an investor them self.

Looking for non traditional financing bc I am newly self employed.

While filling out my taxes I placed the rental income as the LLC income, thereby creating it as business income subject to self employment tax.

You should always include it even if you plan to self manage.