Is there any way I can use CSS3 to fade in and out a solid white background of a
Sure, you can use the transition property directly on the background-color:
div {
background-color: white;
/* transition the background-color over 1s with a linear animation */
transition: background-color 1s linear;
}
/* the :hover that causes the background-color to change */
div:hover {
background-color: transparent;
}
Here's an example of a red background fading out on :hover.