Who it is for
- Investors with 5+ rentals
- Consolidating many small loans
- Portfolio-wide cash-out
Typical Portfolio & Blanket Loans requirements
| Properties | Typically 5 or more |
|---|---|
| Max LTV | Typically 70–75% |
| Qualification | Portfolio-level DSCR |
| Release clauses | Pay down a set amount to sell one property |
Figures are typical market ranges as of October 2026. Actual terms depend on the lender, your credit, the property and the program, and are confirmed on your Loan Estimate or term sheet.
How it works
- Send a rent roll and property list.
- Lender values the portfolio and tests combined DSCR.
- One closing covers every property.
Pros and cons
Advantages
- One payment and closing
- Stronger properties can carry weaker ones
Trade-offs
- Cross-collateralized: one default affects all
- Release prices can exceed a property’s share
Documents you’ll need
- Rent roll
- Leases
- Operating statements
- Entity documents
Portfolio & Blanket Loans FAQ
Blanket loan or separate DSCR loans?
Separate DSCR loans keep each property independent and are easier to sell one at a time. A blanket loan simplifies management for larger portfolios.
How many properties do I need for a blanket loan?
Most lenders want at least 5 properties. Below that, separate DSCR loans are usually simpler and cheaper.
What is the max LTV on a blanket loan?
Typically 70 to 75% of the combined portfolio value. Cash-out blanket refinances trend toward the lower end.
How does a blanket loan qualify income?
On the portfolio’s combined DSCR. Stronger properties can offset weaker ones, which is one of the main advantages.
What is a release clause?
It lets you sell one property out of the blanket by paying down a set amount, usually 110 to 125% of that property’s share of the loan. Read the release terms carefully before signing.
What happens if I default on a blanket loan?
Because the properties are cross-collateralized, a default puts the whole portfolio at risk, not just one property. That is the main tradeoff for the convenience.
How fast can a blanket loan close?
Usually 3 to 5 weeks. Valuing several properties takes longer than a single appraisal, so plan accordingly.
Can I add properties to a blanket loan later?
Some lenders allow substitutions or additions, but many do not. If you plan to keep buying, ask about this before you choose a lender.
Do blanket loans have prepayment penalties?
Most do, similar to DSCR loans. The 5-4-3-2-1 step-down structure is common.
How Portfolio & Blanket Loans compare
| Portfolio & Blanket Loans | DSCR Loans | DSCR Cash-Out Refinance | |
|---|---|---|---|
| Best for | Investors with 5+ rentals | Investors whose tax returns show low income after write-offs | BRRRR investors refinancing out of a hard-money or flip loan |
| Down payment | , | 20–25% down; up to 80% LTV on purchase | , |
| Credit | , | Typically 620–680 (some programs 600) | Typically 640–680 |
| Income docs | , | , | , |
Typical ranges, your Loan Estimate or term sheet confirms actual terms.
Coming soon: a 2-minute walkthrough from our loan team.
Related programs
DSCR Loans
A DSCR loan is an investment-property mortgage that qualifies you on the property’s rental income divided by its monthly payment (the debt service coverage ratio).
DSCR Cash-Out Refinance
A DSCR cash-out refinance replaces the loan on a rental with a larger one, sized to the property’s value and qualified on its rent, and pays you the difference in cash.