Putting only one partner's name on the mortgage?

Question

Hi BP,

I was wondering if anyone here has experience partnering with someone but only financing under one person's name? I am asking if this is possible so that a partnership could theoretically have 20 conventional loans instead of 10, and if both names could still be on the title of the property.

Please let me know your thoughts and advice, or if I'm not providing enough information.

Thank you!

Frank Preciado · Answer

If you are using conventional financing, that should not be an issue. You can have only one person on the loan but both be on title. How many financed properties are you and your partner currently at?

Peter Vekselman · Answer

as long as you guys protect each other from doing stupid things to each other then the structure makes sense.  remember, partners could be a good thing, but also a bad things.  make sure to think ahead of time....

Bill B. · Answer

Another hint @Jake Long

good idea @user1

I’ll do that @user2

How do I do that @user3?

you can put all your replies in one post….   save yourself some time.

Sasha Mohammed · Answer

Just some food for thought - some DSCR lenders are better priced right now than conventional lenders on investment properties. You might find this is a good opportunity to start shifting, leaving your 10-conventional open for future when rates get better on that side. You can close in an LLC with these loan types, and typically you can select your guarantor as well, depending on entity structure and lender requirements.

May be wise timing to at least look into it :)

Nate Herndon · Answer

@Jake Long if you are both members of an LLC, even with ownership split evenly at 50/50, you can alternate who guaranty's a loan. This is done routinely with multiple DSCR and fix-and-flip programs.

You will both receive 'credit' for owning the property though because you are members of the LLC that owns the property on title. Soft credit pulls and closing in the LLC should leave no trace of the transaction on your credit/DTI.

Jake Long · Answer

Do you mind elaborating on the purchasing process? In this case, would we still go with conventional financing with the LLC? or transfer the title once financing is secured?

Jake Long · Answer

I really appreciate this, thank you!

Jake Long · Answer

Thank you for the response, definitely interested in DSCR loans once I run out of options to go conventional.

Putting only one partner's name on the mortgage?

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