No. of Recommendations: 1
Small quibble;
Conforming loans are not allowed on partnerships. The property must come out of the partnership, an individual signs the loan, and then the property can go back into the partnership.

Conforming loans *ARE* allowed on DIRECT partnerships, where every partnering owner applies and is individually approved fully, for joint & severable liability, on the mortgage. The property may be required to be vested to each of the partners (or not, depending on the ramifications of the local laws to the lenders.)

Conforming loans can also be made to the individual partner/members of an LLC that owns the real estate being collateralized... although its something few lenders care to take on. When it *IS* done, the property vesting must usually be titled out of the LLC and into the various borrowing partner's names for the closing/recording of the new loan & liens, after which it can be re-titled to the LLC... however this can sometimes trigger a significant excise tax event, depending on the jurisdiction.

BOTTOM LINE; Its usually not as simple as it can be imagined.

Dave Donhoff
Leverage Planner
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