One loan, many doors
Blanket and Portfolio Loans
Roll 2 to 25 rentals into one loan, one payment, one closing. Up to $6.25 million. Built for investors who already have a portfolio, not for a first deal.
At some point, doing a separate loan for every rental stops making sense. Separate closings, separate payments, separate escrow accounts, separate everything. A blanket loan collapses that into one file.
It also ties your properties together, which is a real trade. This page covers both halves honestly.
The terms
| Properties per loan | 2 to 25 |
| Loan size | $150,000 to $6,250,000 |
| Maximum LTV | 75% |
| Maximum cash to you | $1,000,000 |
| Rate | Fixed |
| Property use | Long-term rentals only |
| Minimum value per property | $100,000 |
| Maximum value per unit | $1.5M (so $1.5M on a single, $3.0M on a duplex) |
| Prepayment | Fixed or declining, such as 5-4-3-2-1. The structure you pick moves your rate |
How the cash flow test works
The loan as a whole needs a 1.00x DSCR. Interest-only raises that to 1.10x.
No single property can be under 0.75x.
That combination is the point of a blanket. A strong performer can carry a soft one. What it cannot do is carry a portfolio where most doors are soft.
Who qualifies
Experienced investors only. One guarantor must meet one of these:
- Owning and managing investment property for 12 consecutive months within the last three years, or
- Having owned three or more investment properties over the past 24 months
If that is not you yet, a single-property DSCR loan is the route, and a blanket becomes available later. DSCR loans.
Mortgage history: one 30-day late in the last 12 months is tolerated, two in 24, and no current late at all.
The three things that cut your leverage by 10%
Leverage drops ten percentage points if any of these apply:
- 25% or more of the properties are non-warrantable condos
- More than 25% of them have individual DSCRs between 0.75x and 0.99x
- 25% or more are vacant or unleased
Worth checking before you pick which properties go in. Sometimes leaving one door out of the loan is worth more than including it.
The release price is the most important number on this page
You can sell a property out of a blanket. It is called a partial release. It costs at least 120% of that property's allocated loan amount, and allocations are set by appraised value.
Plain version: if a property carries $300,000 of the debt, releasing it costs about $360,000. The extra goes to paying down the rest of the loan.
That is not a trick. It is how the lender keeps the remaining collateral strong. But it means your exit costs more than your entry, and you should know the number for every property before you sign.
If you are an investor who trades in and out regularly, a blanket may be the wrong structure. If you buy and hold, it is often excellent.
Mixing property types
Different property types can be crossed together. The catch: pricing and eligibility follow the most restrictive property type in the group.
Put one mixed-use building in with nine single-family rentals and the whole loan can get priced like mixed-use. Sometimes it is cheaper to finance that one asset separately.
Recourse
Expect a full personal guarantee. Typically from owners holding at least 51% of the entity in aggregate, or 50% if there are only two members, or every member with a 20%+ controlling interest. Non-recourse with standard carveouts exists only by exception.
When a blanket is the right move
- You are buying a package of rentals from one seller
- You have five or more properties on separate loans and want one payment
- You want to pull cash out across a portfolio at once, up to $1,000,000
- You are done trading and moving into a hold strategy
When it is not
- You plan to sell properties individually in the next few years
- Your portfolio is mostly weak-cash-flow doors
- Your best asset would carry better terms on its own
- You are not yet an experienced investor by the definition above
Related
- DSCR loans for a single property
- Multifamily loans, 5 to 9 units
- All investor loans
- Model it first in the Passive Income Property Analyzer
Send me the schedule of real estate owned
Addresses, values, loan balances and rents. I will tell you whether a blanket beats what you have.
Questions people ask
How many properties can go in one blanket loan?
A minimum of two and up to twenty-five. The maximum loan amount across all of them is $6.25 million, at up to 75% loan-to-value.
Can I sell one property out of the blanket later?
Yes, through a partial release, but it costs more than that property's share of the debt. The release price is at least 120% of the allocated loan amount for that property, with the allocation set by appraised values. Work out what each release will cost before you sign, not when you have a buyer.
Do all the properties have to cash flow?
The loan overall needs a 1.00x DSCR, or 1.10x if you go interest-only. No single property can be below 0.75x. So one weak door can ride along with stronger ones, but a portfolio full of weak doors will not work.
Can a first-time investor use this?
No. This is experienced investors only. You need either 12 consecutive months of owning and managing investment property within the last three years, or ownership of three or more investment properties over the past 24 months. One guarantor has to meet that test.
Can I mix property types in one loan?
Yes, different property types can be crossed together. But pricing and eligibility follow the most restrictive property type in the group, so one difficult asset sets the terms for everything else.