They would not let me have more than 5 landlord policies, and they would only let me write policies to an LLC if I was the sole owner.

Let me start with this:in HUD's Single Family Housing Policy Handbook updated in 2015 it says this: (Straight out of their pdf edition on the website) (i) Time Restriction on Transfers of Title The eligibility of a Property for a Mortgage insured by FHA is determined by the time that has elapsed between the date the seller has acquired title to the Property and the date of execution of the sales contract that will result in the FHA-insured Mortgage.FHA defines the seller’s date of acquisition as the date the seller acquired legal ownership of that Property.

If it's just the fact that you want it in an LLC, I would strongly suggest just dropping the LLC, getting regular financing and taking out an umbrella insurance policy.

This business has Rules and Regulations that must be followed and policies and procedures that need to not only be implemented but followed.Tenants are very smart on what their rights are these days and if you violate them, even if by accident you will pay the price.

The question though is do you have just lenders title insurance, or an owners policy too.

Price and prior terms.Mark 

Some only insure new buildings and others package investors with group policies for older buildings.Really  is a case by case basis for the property. 

It is my understanding the bank is not "technically" okay with this, but they won't due anything as long as they are getting paid.My question is: What is the best way to physically pay for the home prior to putting it in your LLC?

If you are concerned more about liability than a tax shelter, consider a large umbrella policy on your homeowner's insurance. 

What would the implications be if the house was built and then rented out for a year prior to selling?