However, alternating back and forth between the two solvent carriers is your issue. 

Alternatively, If your numbers are accurate, there is definitely enough spread to work with a HML if you are employed, have decent credit and can put some skin in the game (ie 10% of the purchase or so).

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. 

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. 

Generally not even as a start up cost.Education undertaken to STAY CURRENT or LEARN NEW TECHNIQUES in your current business are deductible as a business expense.For example, when I take classes on tax code, I can write that off against my current tax and accounting business.