So if I was dealing with a seller who was insisting on handling the transfer this way, I would be wondering what the seller is trying to hide... and I would figure it out.

I’m leaning towards the Fannie Mae route but have no idea the process to transfer it to your LLC later.

The happiest day of my investing career was when I transferred ownership to all those houses in one transaction and to never ever go there again with that asset class.But thats me.. section 8 can work but its not as passive as folks claim.

Too many stories of hacking to get at wire transfers, etc.

Here are title cost numbers from my last deal in Lake Oswego ($625k sales price):Title agent fee: $1100Owner's title policy: $1425Recording fee: $350MERS: $25There may be transfer taxes depending on what county the property is in, as well.Chris

Transferring ownership to your LLC might trigger transfer taxes or reassessment, depending on your local regulations.Commercial lenders will evaluate your loan based on the property’s cash flow (DSCR) rather than your personal income, which is great for freeing up your DTI. 

@Chris Rendall couple comments,@Wayne Brooks is correct if it was a Homeowners policy now being transfer to an LLC and used as a rental. 

The oil company now owns the subsurface rights to that property (one of the property's appurtenances) and can transfer or keep them as they wish.

I’m sure someone will tell you that you can transfer title of the house after closing, but what purpose would that serve?

Alternatives to ConsiderIf you want to involve an entity for liability protection or other reasons, here are some potential approaches:Assume in Personal Name and Transfer to Entity:Assume the loan in your personal name and later transfer the property title to an entity.Important: Transferring title may violate the loan’s due-on-sale clause unless explicitly allowed by the lender.