How a blanket loan works
A single loan is secured by multiple properties. Underwriting looks at the combined rent against the combined payment, so a strong property can help carry a weaker one. That flexibility is the main appeal, along with one payment and often one set of closing costs.
Terms worth negotiating
Blanket loans are less standardized than single-property DSCR loans. Pay attention to:
- Release provisions: what it costs to sell one property and remove it from the loan
- Cross-collateral effects if one property has a problem
- Prepayment structure across the whole loan
- Minimum number of properties and minimum loan size
- Whether properties in different states can share one loan
Separate loans can still win
Individual DSCR loans keep each property independent, which can make selling or refinancing one door easier later. We often price both approaches so you can see the trade-off between simplicity now and flexibility later.
Questions investors ask about portfolio and blanket loans
How many properties do I need for a blanket loan?
Minimums vary by program, and some start with a small number of properties. Larger portfolios generally have more options.
Can I take cash out on a portfolio refinance?
Yes, many portfolio programs allow cash out, sized on the combined value and rent of the properties.
What happens if I sell one property?
The release clause sets the payoff required to remove that property. Read it carefully before you sign.
Want to test the numbers first? Try the DSCR calculator, or read how much cash you can take out.