You can also try and incorporate a seller concession of up to 3% (with 3.5% down) which can help cover closing costs and reduce the cash needed to close.

I trust my agent but I also would like to be able to verify what they told me was true especially when it cost me more money.

So FHA has two sections:FHA section 203(b) is intended for properties that are move-in ready.However, FHA section 203(K) enables homebuyers to finance the purchase of a home and the cost of its rehabilitation. 

No, we would be bringing some money to the table for down payment, closing costs, etc.. 

(or their forward hedge. which also cost a lot of money) The market for mortgage backer securities sets mortgage rates not the lender.

If I am unable to change the financing structure due to high costs of refinancing, are there ways to still protect the assets under an LLC?

I am not as concerned with cost and would prefer quality and transparency.

The cost of the new property covered the 1031 requirement of the value being equal or greater than the sale price of the joint property that was attributable to me (50%). - After closing as an individual buyer and completing all 1031 requirements (IMHO), I formed an LLC through my lawyer for the purpose of transferring the newly acquired property in there before I rented it out.

Also, please bear in mind costs; some states could have annual fees for an LLC in the hundreds of dollars (e.g., California),  whilst other states have no such fees (Texas).

A simple mistake can cost you more money or time.Here's a pretty good guide: https://www.clarkcountyohio.gov/DocumentCenter/View/5210/CCO...