Blanket Loans
Consolidate multiple rental properties into one mortgage. One loan, one payment, and release clause flexibility for portfolio management.
Blanket Loans: Consolidate Multiple Properties Under One Mortgage
Blanket loans provide experienced landlords with a streamlined way to consolidate multiple rental properties into a single mortgage, offering simplified portfolio management and cost efficiency.
This specialized program recognizes that successful real estate investors often accumulate multiple properties over time, each with its own mortgage, payment schedule, and administrative requirements. Managing multiple loans can become complex and costly, especially for landlords focused on portfolio growth and optimization.
For experienced landlords with multiple stabilized properties, LLCs, business entities, and investors seeking portfolio consolidation, blanket loans offer the efficiency and flexibility needed to manage growing portfolios effectively.
What is a Blanket Loan?
- Definition
- Blanket loans are specialized mortgage programs that consolidate multiple rental properties into a single loan, allowing landlords to manage multiple properties with one monthly payment and one set of closing costs while maintaining flexibility through release clauses.
- How it works
- These loans combine multiple properties under one mortgage, typically at 80% combined portfolio value. You make one monthly payment, and the loan includes release clauses that allow you to sell or refinance individual properties without paying off the entire loan.
- Key advantage
- Blanket loans eliminate the administrative burden of managing multiple mortgages while providing release clause flexibility. You can sell individual properties without affecting the remaining portfolio, making portfolio management much more efficient.
Blanket Loan Eligibility Requirements
You may be eligible for a blanket loan if you meet these key requirements:
| Requirement | Details |
|---|---|
| Credit score | 680 FICO score minimum (700 preferred for best terms) |
| Portfolio equity | 20% minimum equity across the portfolio |
| Loan amount | 80% of combined portfolio value |
| DSCR requirement | 1.25 or higher for rental portfolios |
| Portfolio size | At least 2 properties minimum |
| Reserves | 6 months of mortgage payments |
| Borrower type | Experienced landlords, LLCs, or business entities preferred |
| Property types | Single-family rentals, multi-units, mixed-use, development parcels |
Did you know: Blanket loans can save thousands in origination and closing costs by consolidating multiple properties under one mortgage.
Why Blanket Loans Instead of Traditional Financing?
Traditional banks often don't offer programs designed for landlords with multiple properties who want to consolidate their financing. They typically require separate loans for each property, which means multiple monthly payments, multiple sets of closing costs, and administrative complexity that can hinder portfolio growth and management.
Your first bank just doesn't offer the right program for you.
Think of it like when a customer asks for something your business doesn't offer. Maybe they want delivery but you only do pickup, or they need a service you don't provide. You're not saying no because there's anything wrong with them—you just don't offer that particular service. Same with mortgages. Traditional banks work great for most people, but they don't offer the programs that multi-property landlords need for efficient portfolio management.
Traditional banks use conventional underwriting that works well for individual property purchases but struggles with portfolio consolidation and cross-collateralization. Your investment strategy may involve managing multiple properties efficiently, but conventional programs can't accommodate the complexity of portfolio-based financing.
Blanket loans are perfect for experienced landlords who want to simplify their portfolio management, reduce administrative burden, save on financing costs, or gain flexibility in selling individual properties without affecting their remaining portfolio.
This isn't about finding loopholes or gaming the system. It's about working with lenders who understand how portfolio management actually works. Blanket loans are offered by lenders who work with experienced investors every day. They look at your portfolio's overall performance, rental income stability, and management track record—the factors that actually matter for successful portfolio management—rather than just individual property qualifications.
For a no obligation conversation about your mortgage, contact Bradley Swearingen (#2577725) of Rain City Capital at 214-756-7076.
Example Use Cases and Scenarios
Portfolio Consolidator
Linda owns 6 rental properties and consolidates them into one blanket mortgage with release clause flexibility.
Developer with Multiple Parcels
Marcus uses one blanket loan for 8 townhomes, releasing portions as he sells each unit.
Cash-Flow Landlord
Dana secures a blanket mortgage based on DSCR rather than personal W-2 income across her portfolio.
Growth-Focused Investor
An investor consolidates existing properties to free up capital for additional acquisitions.
| Scenario | Description |
|---|---|
| Portfolio Consolidator | Linda owns 6 rental properties and consolidates them into one blanket mortgage with release clause flexibility. |
| Developer with Multiple Parcels | Marcus uses one blanket loan for 8 townhomes, releasing portions as he sells each unit. |
| Cash-Flow Landlord | Dana secures a blanket mortgage based on DSCR rather than personal W-2 income across her portfolio. |
| Growth-Focused Investor | An investor consolidates existing properties to free up capital for additional acquisitions. |
Did you know: Release clauses allow you to sell individual properties without paying off the entire blanket loan.
How Blanket Loans Work
Blanket loans follow a specialized portfolio-based process designed specifically for landlords with multiple properties. The key differences are consolidation approach and release clause flexibility—these loans use cross-collateralization to combine multiple properties under one mortgage.
The Blanket Loan Process
- 1. Portfolio Analysis & Cross-Collateralization
- The process begins with comprehensive portfolio analysis where lenders examine all properties' values, rental income, and performance history, followed by cross-collateralization assessment to determine how the properties work together to secure the loan. Lenders then calculate the maximum loan amount based on 80% of combined portfolio value, ensuring the total collateral provides sufficient security for the consolidated loan. This analysis determines your loan eligibility based on portfolio strength rather than individual property performance.
- 2. Portfolio-Based Underwriting
- Unlike conventional loans, blanket loan underwriting focuses on portfolio performance rather than individual properties. This includes reviewing property financials and rent rolls across all properties, borrower track record and landlord experience, credit history and portfolio performance metrics, and DSCR calculations considering the entire portfolio's rental income. The underwriting process prioritizes your ability to manage multiple properties successfully.
- 3. Cross-Collateralization Structure
- Experienced underwriters review your portfolio profile using cross-collateralization analysis instead of individual property evaluation. They assess the portfolio's combined value through comprehensive appraisals, rental income stability across all properties, management track record and landlord experience, and portfolio diversification and risk assessment. The underwriting process includes the same risk assessment as conventional loans, just with a focus on portfolio management and cross-collateralization.
- 4. Release Clause Implementation
- Once approved, the loan includes release clauses that allow you to sell or refinance individual properties without paying off the entire blanket loan. As long as the remaining collateral supports the loan balance, you can release properties from the mortgage. This provides flexibility for portfolio management while maintaining the benefits of consolidation.
Blanket Loans vs Conventional Mortgages
Understanding the key differences between blanket loans and conventional mortgages can help you choose the right financing option for your situation.
| Feature | Blanket Loans | Conventional Loan |
|---|---|---|
| Who Qualifies | Experienced landlords with multiple properties, LLCs, business entities, portfolio consolidators, and investors seeking simplified financing | W-2 employees, salaried workers |
| Income Documentation | Portfolio-based underwriting focusing on DSCR and rental income across multiple properties, cross-collateralization analysis | W-2s, pay stubs, tax returns |
| Minimum Credit Score | 680 FICO score minimum | 620 |
| Minimum Down Payment | 20% equity across portfolio | 3% |
| Private Mortgage Insurance | Not applicable | Private mortgage insurance (PMI) |
| Occupancy Type | Investment properties only | Primary residences, second homes, investment properties |
| Property Type | Single-family rentals, multi-unit properties, mixed-use properties, development parcels | Single-family homes, condos, townhouses, 2-4 unit properties |
| Interest Rates | Higher than traditional rates due to complexity | Market rates |
| Processing Time | 4 weeks | 30-45 days |
| Closing Costs | One set of origination fees, appraisal fees, and closing costs | 2-5% of loan amount |
| Prepayment Penalty | Varies by lender | None |
| Reserves Required | 6 months of mortgage payments | 2-6 months of PITI |
| Debt-to-Income Ratio | Not considered | Up to 43% |
| Maximum Loan Amount | 80% portfolio value maximum | $806,500 |
| Appraisal Requirements | Portfolio appraisal considering all properties and cross-collateralization | Standard appraisal required |
| Occupancy Requirements | Investment properties only | Primary residence for 12 months |
| Non-Warrantable Condos | Eligible with additional requirements | Not eligible |
| Manufactured Homes | Eligible if on permanent foundation | Eligible if on permanent foundation |
| ADU Properties | Eligible as part of portfolio | Not eligible |
| Barndominiums | Eligible with proper appraisal and insurance | Not eligible |
| Tiny Homes | Eligible if meets minimum square footage requirements | Not eligible |
| Mixed-Use Properties | Eligible for residential portion | Not eligible |
| Rural Properties | Eligible | Eligible |
| Feature | Blanket Loans | Conventional Loan |
|---|---|---|
| Who Qualifies | Experienced landlords with multiple properties, LLCs, business entities, portfolio consolidators, and investors seeking simplified financing | W-2 employees, salaried workers |
| Income Documentation | Portfolio-based underwriting focusing on DSCR and rental income across multiple properties, cross-collateralization analysis | W-2s, pay stubs, tax returns |
| Minimum Credit Score | 680 FICO score minimum | 620 |
| Minimum Down Payment | 20% equity across portfolio | 3% |
| Private Mortgage Insurance | Not applicable | Private mortgage insurance (PMI) |
| Occupancy Type | Investment properties only | Primary residences, second homes, investment properties |
| Property Type | Single-family rentals, multi-unit properties, mixed-use properties, development parcels | Single-family homes, condos, townhouses, 2-4 unit properties |
| Interest Rates | Higher than traditional rates due to complexity | Market rates |
| Processing Time | 4 weeks | 30-45 days |
| Closing Costs | One set of origination fees, appraisal fees, and closing costs | 2-5% of loan amount |
| Prepayment Penalty | Varies by lender | None |
| Reserves Required | 6 months of mortgage payments | 2-6 months of PITI |
| Debt-to-Income Ratio | Not considered | Up to 43% |
| Maximum Loan Amount | 80% portfolio value maximum | $806,500 |
| Appraisal Requirements | Portfolio appraisal considering all properties and cross-collateralization | Standard appraisal required |
| Occupancy Requirements | Investment properties only | Primary residence for 12 months |
| Non-Warrantable Condos | Eligible with additional requirements | Not eligible |
| Manufactured Homes | Eligible if on permanent foundation | Eligible if on permanent foundation |
| ADU Properties | Eligible as part of portfolio | Not eligible |
| Barndominiums | Eligible with proper appraisal and insurance | Not eligible |
| Tiny Homes | Eligible if meets minimum square footage requirements | Not eligible |
| Mixed-Use Properties | Eligible for residential portion | Not eligible |
| Rural Properties | Eligible | Eligible |
Real-World Example: Blanket Loans
The Portfolio Consolidator's Success Story
Linda, a seasoned real estate investor, had successfully built a portfolio of 6 rental properties over the past 8 years. Each property was financed with a separate mortgage, which meant 6 different monthly payments, 6 different payment due dates, and 6 sets of administrative requirements. While her portfolio was performing well, the administrative burden was becoming overwhelming and costly.
When Linda approached her traditional bank about consolidating her properties, she faced the familiar roadblock. Despite having excellent credit at 720 and strong portfolio performance, the conventional lender could only offer individual refinancing for each property. This would mean 6 separate loan applications, 6 separate closings, and significantly higher costs that would eat into her profit margins.
Frustrated but determined to simplify her portfolio management, Linda discovered blanket loans through another lender. This specialized program would consolidate all 6 properties under one mortgage at 75% LTV, with release clause flexibility. By analyzing her portfolio's combined value of $1.2 million and her available equity, the lender calculated she could qualify for a $900,000 blanket loan.
The process was streamlined: she provided portfolio financials, rent rolls, and landlord experience documentation. The underwriting focused on her portfolio's overall performance rather than individual property qualifications. Within 5 weeks, she received approval and closed on the consolidated loan.
The benefits were immediate: one monthly payment instead of six, reduced administrative burden, and significant cost savings. When Linda later decided to sell one property, the release clause allowed her to do so without affecting the remaining portfolio. This story illustrates how blanket loans can enable efficient portfolio management for landlords with multiple properties.
Did you know: Blanket loans support portfolio growth by freeing up capital and simplifying future acquisitions.
Benefits & Considerations
Blanket loans offer significant advantages for portfolio management and consolidation, but they also come with important considerations to weigh.
Key Benefits: Portfolio consolidation, cost efficiency, release clause flexibility, simplified management
- Portfolio consolidation
- Combine multiple properties under one mortgage, eliminating the administrative burden of managing multiple loans and payment schedules.
- Cost efficiency
- Save thousands in origination and closing costs by consolidating multiple properties under one mortgage instead of financing each separately.
- Release clause flexibility
- Sell or refinance individual properties without paying off the entire blanket loan, as long as the remaining collateral supports the balance.
- Simplified management
- One monthly payment, one set of loan terms, and streamlined portfolio management that supports growth and scaling strategies.
- Portfolio growth support
- Ideal for portfolio expansion or refinancing multiple assets at once, freeing up capital for additional acquisitions.
- Multiple property types
- Cover single-family rentals, multi-units, mixed-use properties, or even development parcels under one consolidated loan.
Important Considerations: Cross-collateralization risk, limited availability, higher requirements, portfolio dependency
- Cross-collateralization risk
- Defaulting on one property can endanger the entire portfolio since all assets secure the same loan. This creates higher risk than individual property financing.
- Limited lender availability
- Not every lender offers blanket loans; those that do often require higher credit scores, experience thresholds, and portfolio performance standards.
- Higher qualification requirements
- Strong credit scores (680+), substantial equity (20-30%), and proven landlord experience are typically required due to the complexity of portfolio management.
- Portfolio dependency
- The loan's success depends on maintaining strong performance across all properties. Weak performance in one property can affect the entire portfolio.
- Complex underwriting
- Portfolio analysis, cross-collateralization assessment, and release clause structuring require more complex underwriting than individual property loans.
- Release clause limitations
- Selling individual properties may require maintaining minimum collateral ratios, and some lenders may have restrictions on release clause usage.
Frequently Asked Questions About Blanket Loans
Get answers to the most common questions about blanket loans. Whether you're wondering about qualification requirements, documentation needs, or how the process works, we've covered the essential information below.
What is a blanket loan?
How do blanket loans work?
Who qualifies for blanket loans?
What are the typical requirements?
How much can I borrow?
What credit score do I need?
How do release clauses work?
What properties can be included?
What are the benefits of consolidation?
What are the risks of blanket loans?
How many properties do I need?
Can I add properties to the blanket loan later?
What documentation do I need?
For a no obligation conversation about your mortgage, contact Bradley Swearingen (#2577725) of Rain City Capital at 214-756-7076.
Bradley Swearingen
Loan Officer at Rain City Capital
Bradley Swearingen Customer Reviews
Read verified customer reviews for Bradley Swearingen at Rain City Capital. This is real feedback from real borrowers who used Bradley Swearingen and their colleagues for a mortgage loan.
"I recently had the pleasure of working with William Guyett at Rain City Capital for a hard money loan on my latest property flip. From the outset, William made the entire process not only smooth but impressively quick, which is crucial in the fast-paced real estate investment world. What stood out to me was the simplicity and efficiency of the rehab draw process. Often, this can be a point of frustration due to complicated procedures and delays, but William ensured everything was straightforward and hassle-free. His professionalism, knowledge, and dedication to customer service significantly contributed to the success of my project. I truly appreciated the personal attention and guidance William provided throughout the loan process. It's clear that he values his clients and goes above and beyond to meet their needs. If you're looking for a reliable and supportive hard money lender, I highly recommend William Guyett and Rain City Capital for your next investment project. Working with him was a fantastic experience, and I look forward to future opportunities to collaborate again."
"Carolina is the most professional, knowledgeable, positive, supportive, responsive, and proactive lender you will find! She makes other lenders look like amateurs. I would highly recommend Carolina for all of your lending needs and now that I have found her, will not be going with anyone else!"
"I had the pleasure of working with Carolina on my recent real estate purchase, and I couldn't be happier with the experience. From start to finish, she was amazing—extremely responsive, knowledgeable, and always available to answer my questions. Carolina made the loan process smooth and stress-free, keeping me updated every step of the way. Her professionalism and dedication truly stood out, and I felt supported throughout the entire transaction. I highly recommend Carolina to anyone in need of a reliable and attentive lender."
Portfolio Consolidator
Linda owns 6 rental properties and consolidates them into one blanket mortgage with release clause flexibility.
Developer with Multiple Parcels
Marcus uses one blanket loan for 8 townhomes, releasing portions as he sells each unit.
Cash-Flow Landlord
Dana secures a blanket mortgage based on DSCR rather than personal W-2 income across her portfolio.
Growth-Focused Investor
An investor consolidates existing properties to free up capital for additional acquisitions.
| Scenario | Description |
|---|---|
| Portfolio Consolidator | Linda owns 6 rental properties and consolidates them into one blanket mortgage with release clause flexibility. |
| Developer with Multiple Parcels | Marcus uses one blanket loan for 8 townhomes, releasing portions as he sells each unit. |
| Cash-Flow Landlord | Dana secures a blanket mortgage based on DSCR rather than personal W-2 income across her portfolio. |
| Growth-Focused Investor | An investor consolidates existing properties to free up capital for additional acquisitions. |
Similar Mortgage Programs to Blanket Loans
If blanket loans are not the right fit, these alternative programs might work better for your situation. Each has different requirements and lenders who specialize in helping borrowers with specific challenges get approved for mortgages.
Asset Depletion Loans
Learn about asset depletion loans for borrowers with substantial assets. Connect with lenders who offer asset-based mortgage programs.
DSCR Loans
Debt Service Coverage Ratio loans for real estate investors. Perfect for purchasing rental properties based on rental income rather than personal income.
Important Compliance Information
Disclaimer: This information is for educational purposes only. AnotherLender.com is not a lender and does not make loans. We connect borrowers with licensed mortgage professionals. All loan approvals are subject to lender underwriting guidelines and individual qualification. Rates and terms may vary. Consult with a qualified mortgage professional for personalized advice.