I understand that private money can sometimes be unreliable and that's why you need to get PREQUALIFIED with other funding sources too just in case.Hope all of that makes sense. 

Since I've gotten this job my wife hasn't worked so this is our only source of income currently.

You would need to acquire data from outside sources. e.g. if you asked her what branch of the military she was in, who her last commanding officer was and some other details, I'm guessing you would get more riled responses as she's thinking this isn't as easy of a put over as she expected.

Just food for thought.

Btw do you know of any creditable sources you could recommend to help me find some legitimate P&S agreement?!

Having said that 2 things:Fannie/Freddie do not require to "source" the funds.  

Your network is the best source for deals, capital, service providers, and anything else you might need in the business.

Taxes are not cookie cutter and whether or not to elect an S-Corporation is based on a ton of different factors including your other sources of income, your retirement goals, your overall income levels and tolerance for the formalities of managing a corporation.If you've got a W2 at anything close to a decent wage, an S-Corp can cost you in taxes rather than save, so be very careful about handing this out (or accepting this) as blanket advice.Whether or not to use a different LLC every time is more of a legal question. 

Andres, I'm based in Southern CA, so here to network if you source deals down here and need help, and I'll do the same for your area.

If I'm following your logic correctly, your situation is:You have a previous HELOC on your primaryYou want to refinance to new rate/ termYou'll be paying off your HELOC from some other source prior to the refi (NOT via a cash out during the refinance)If that's the case, you shouldn't have any difficulty (other than perhaps some loan officers not being up to date on the regulations, or having other weird overlays).