Portfolio loans
Rental Portfolio Loans and Blanket Loans for Investors
Once you own several rentals, financing them one at a time stops working. Portfolio and blanket loans are how investors scale.
Conventional financing limits how many properties you can finance and tests your personal debt-to-income on every one. Portfolio and blanket loans remove both walls, which is why serious buy-and-hold investors move to them.
Ready to pick a lender? See how to choose a portfolio lender.
Blanket loans
A blanket loan finances multiple properties under a single loan with one payment. The properties are cross-collateralized, meaning they secure the loan together. A release clause lets you sell an individual property without unwinding the whole loan, by paying down an agreed portion. This simplifies your debt and your bookkeeping as you grow.
Portfolio loans
A portfolio loan is held by the lender rather than sold to the secondary market, so the lender can set its own rules. That flexibility is the point: portfolio lenders can finance more properties, unusual situations, and borrowers that conventional underwriting rejects.
How they qualify
Like a single DSCR loan, these are underwritten on the cash flow of the properties rather than your personal income. The lender looks at the combined rent against the combined payment, your credit, reserves, and the condition and occupancy of the properties.
Trade-off to weigh. Cross-collateralization is convenient but ties properties together. If you plan to sell pieces of the portfolio, confirm the release terms before you sign.
For pulling equity out of a portfolio to fund the next purchase, see cash-out refinance.