A good fit if
- You own five or more rentals
- You want one payment instead of many
- You want to pull cash out across several properties at once
Probably not if
- You own one or two rentals (single DSCR loans are simpler)
- You plan to sell most of the portfolio soon
- The properties have very different owners or entities
How Blanket Loans Work
A blanket loan is one mortgage secured by several properties. The lender looks at the portfolio as a whole: the combined rent, the combined payment, and the combined value. Strong properties can help carry weaker ones, which isn't possible with separate loans.
Example: you own six rentals worth $2.4 million combined, with $900,000 of existing loans. At 70% loan-to-value, a blanket loan could be up to $1.68 million, paying off the existing loans and freeing equity for new purchases, with one payment instead of six. The combined rent still has to support the new combined payment.
Portfolio Loan Requirements
- Number of properties: usually 5 or more, though some programs start at 2.
- Max LTV: often up to 70–75%, lower for cash-out.
- Qualifying: combined DSCR across the portfolio, often 1.0–1.25x.
- Credit: often 660–680+ for the guarantors.
- Experience: many lenders want to see that you've owned and managed rentals before.
- Borrower: usually an LLC or other entity, with personal guarantees.
Release Clauses
Most blanket loans let you sell or refinance an individual property by paying down a set amount, often 110–125% of that property's share of the loan. This keeps the rest of the portfolio financed. Read the release terms carefully, because they vary widely by lender.
Blanket Loan vs. Separate DSCR Loans
| One blanket loan | Separate DSCR loans | |
|---|---|---|
| Payments | One | One per property |
| Qualifying | Combined cash flow | Each property on its own |
| Selling one property | Release clause | Pay off that loan |
| Closing costs | One closing | One per loan |
| Terms | Often more commercial-style | Standard 30-year options |
Separate DSCR loans are often more flexible, with 30-year fixed terms and no cross-collateral. A blanket loan wins when you want one payment, one closing, or when combined cash flow helps a weaker property. Read more in the blanket loan guide.
When a Portfolio Loan Makes Sense
- You're consolidating several small loans into one
- You want to pull equity from a group of properties at once
- Some properties are below 1.0x on their own, but the portfolio covers its payment
- You're buying several properties in one transaction
How to Qualify
- List every property with address, value estimate, current loan balance, rent, taxes, insurance, and HOA.
- Calculate the combined DSCR on the proposed loan.
- Put the properties in the same entity, or line up the same owners and guarantors.
- Decide which properties you might sell soon, so the release terms fit your plan.
- Send me the schedule, and I'll compare a blanket loan with separate loans.
Documents You'll Need
- A schedule of real estate owned
- Leases and a rent roll for each property
- Current mortgage statements
- Insurance declarations and property tax bills
- Entity documents for the borrowing LLC
- Bank statements for reserves
Portfolio Loan FAQ
How many properties do I need for a blanket loan?
Many programs start at 5, and some at 2. Smaller portfolios are often better served by separate DSCR loans.
Can properties be in different states?
Often, yes, depending on the lender. Properties in several states can make the title and closing process longer.
Do all the properties need to be in one LLC?
Not always, but it's simpler. Lenders typically want the same owners and guarantors across the portfolio.
Can I sell one property and keep the loan?
Usually, through the release clause. You pay down a set amount tied to that property, and the rest of the loan stays in place.
Is there a prepayment penalty?
Usually. Blanket loans often have prepayment penalties or yield maintenance, separate from release clause payments. Ask how both work before you commit.
Business-purpose loans for investment properties in California and other states where permitted. Guidelines shown are typical ranges from published Non-QM lender guidelines as of October 2026 and are not a commitment to lend. Your actual terms depend on credit, property, loan amount, and the lender's current guidelines, and can change without notice.