.#1 - My guess for why you are claiming residency is you want to get the super sweet loan terms only offered to owner occupied, conventional borrowers. 

They are making it seem as though it is standard conventional refi?

You'll just end up having to refi down the road to conventional anyway.

@Sam Kasa You are going to have to move out of the conventional banks into investment lenders

I’m looking for a HELOC on my primary residence through a non conventional lender.

Hello all-  Would like a feedback response from the BP community I am contemplating between getting Heloc Versus Conventional loan for a Refi with cashout on Vacation home/ 2nd home. 

I would then use that 180K as a down payment on a conventional loan for new construction on a single story house that is being built in a new development near my wife and I (Est completion date is July with a price of about 280K). 

If you're buying your primary residence, you can put down as little as 3.5% for an FHA loan or 5% for conventional.

I have a conventional 30 year mortgage with PMI on a SFH that I’m currently renting out.

As to the refinance, if you intend on using a conventional Fannie Mae loan, they will not close the loan in the LLC.