Loan originated to customer on rental property. Loan has now matured and the customer wants to do a short term renewal, but the property is now their homestead. Can we do a short term renewal or would we have to do a new Home Equity loan?

Any opinions?

You'll have to follow the homestead laws now, since it's now their homestead. What was the original purpose of the loan? If it was to purchase, improve or refinance the property, and you're not adding additional money, you might can renew it without getting into HE territory.

Original purpose was to purchase the rental/investment property.

So, unless you add additional money (other than closing costs), a renewal of the loan will just be a renewal of purchase money - which is an allowable loan under the homestead laws. It shouldn't trigger the home equity rules as long as it's a straight renewal.