Blanket Loan for Rental Portfolios
One mortgage across several rental properties instead of one loan per door. Qualification runs on what the properties earn, not on your personal income.
One loan, many doors
Stop stacking separate mortgages. Cross-collateralize the portfolio.
- A blanket loan is a single mortgage secured by at least two properties and as many as fifteen. All of them serve as collateral.
- Every property in the loan has to sit in the same state.
- There is no personal income calculation. Qualification runs on debt service coverage, both across the portfolio and property by property.
- The loan amount runs from two hundred fifty thousand dollars up to two million, with each individual property valued at a minimum of one hundred fifty thousand.
- Purchase, rate and term refinance, and cash-out refinance are all available.
- This is a business purpose, non-owner-occupied loan. It cannot be used on a home you live in.
Two to fifteen properties, one loan
No personal income needed
Entity vesting and title
Individual property release
Reserves on the subject only
Fixed and adjustable options
How The Coverage Test Works
Two ratios have to clear, not one.
The first is the portfolio-level test. Total gross rental income from every pledged property is divided by the total payment on the blanket loan, and that has to reach at least one and one-tenth times coverage. On an interest-only structure the calculation uses the interest, taxes, insurance, and association dues instead of the full principal and interest.
The second test runs property by property. Each individual property gets an allocated share of the loan, calculated from its value, and that property alone has to cover its allocated payment at the same one and one-tenth times threshold. A single weak property can hold up the whole file even if the portfolio average looks fine, which is why the property mix matters as much as the total.
Rent is documented at the lower of the executed lease or the market rent from the appraisal. If a lease shows more than the appraisal supports, three consecutive months of documented receipt can justify using the higher number. Short-term rental income is not eligible on this program, and vacant properties cannot be refinanced unless the vacancy is due to a recent renovation with the intent to rent.
Why investors consolidate into a blanket loan
Six reasons a portfolio owner moves from separate mortgages to one.
One Closing Instead Of Many
Financing eight rentals individually means eight applications, eight appraisals ordered separately, eight sets of closing costs, and eight servicers. A blanket loan is one transaction.
Financed Property Limits Stop Mattering
Most investor programs cap how many financed properties one borrower can have and require additional reserves for each one. On a blanket loan those caps do not apply and reserves are calculated on the subject loan only.
Your Personal Income Is Not The Constraint
A full-time investor with heavy depreciation on the tax returns often looks weak on a debt-to-income calculation while running a genuinely profitable portfolio. Coverage-based qualification measures the business instead of the tax return.
You Can Still Sell Individual Properties
Properties can be released from the loan individually without paying the whole mortgage off, subject to the loan documents. The release price is set at a premium over that property’s allocated balance.
Cash-Out Can Serve As Reserves
Proceeds from a cash-out refinance can count toward the reserve requirement, which keeps you from having to park separate funds to satisfy the file.
Entity Ownership Is The Norm Here
Title can be held in an LLC or corporation formed for owning and managing real estate, with up to four entity owners. A personal guaranty is required from qualifying guarantors.
Hear From Homeowners Like You
Frequently Asked Questions
What portfolio owners ask before consolidating.
At least two, and no more than fifteen in a single loan. They all have to be in the same state.
Yes. This program is written for experienced investors. You need to document at least twelve months of owning and managing commercial or income-producing residential real estate at some point within the last five years.
Yes, and most borrowers do. The entity has to be formed for the purpose of owning and managing real estate. You will need articles of incorporation, the operating agreement, a tax identification number, and a certificate of good standing dated within thirty days of closing.
No. Personal recourse is required, and qualifying guarantors sign a personal guaranty. Guarantors need to be a managing member or majority owner holding at least twenty-five percent, and they are underwritten like an individual borrower.
Single family homes including modular, single family with an accessory dwelling unit, two-to-four-unit properties, planned unit developments, townhouses, warrantable condominiums, and leasehold properties up to twenty acres. Manufactured homes, five-plus-unit buildings, condotels, co-ops, non-warrantable condos, and mixed-use are not eligible.
Yes, on a business purpose basis. Cash-out proceeds intended for personal use make the transaction ineligible for this program.
Yes, and each appraisal also gets an independent third-party review. The reviewed value has to land within ten percent of the original appraisal for the file to move forward.
Find out what you qualify for
Send us the property list with addresses, current rents, and estimated values. We will run the portfolio coverage test and the property-level test before anything formal starts, so you know which properties belong in the loan and which ones are dragging it down.
Get Pre-QualifiedBlanket and cross-collateralized loans are business purpose, non-owner-occupied financing and are not available for owner-occupied properties. Property counts, coverage requirements, experience requirements, credit minimums, and eligible property types vary by investor and are subject to change. Availability is limited. Not all applicants will qualify. This is not a commitment to lend.