How do conventional loans work in partnerships

[Ryan Moore]

I'm considering partnerships for future deals, simple stuff for now like 50/50 splits, etc.  How do conventional loans work with 2 to 3 partners involved?  Does the loan only go under one person, or all?  How would these loans affect my ability to get loans in the future for any solo deals or other partnership deals?

[Bob Okenwa]

Hi Ryan,

Generally speaking, there are no more than 2 people on a conventional loan. You could do it under 1 person if that person can qualify on their own if that is what you choose to do. Fannie Mae limits an individual to 10 loans under their name and Freddie Mac is 6 I believe. With each successive active loan, there are reserve requirements that one must meet in order to qualify, not to mention at some point, the DTI limit may be reached depending on your finances and credit.