For several reasons, including liability protection, you would want to form an LLC and have the LLC purchase the property and get the mortgage. Some banks will offer mortgages to new LLCs without requring the members (owners) to also personally guaranty (make themselves personally liable for) the mortgages; some will lend if the members provide personal guarantees; some will not lend. It depends on the bank and their underwriting (deciding on what loans to make, under what terms) policies, which vary by bank; you may need to shop around.