A blanket loan across five rental properties
Can I finance five rental properties under one blanket loan?
A five-property blanket loan is one note and one closing instead of five, sized against the combined value and income of the whole portfolio — the trade is underwriting simplicity now for cross-collateralization later, where every property is tied to the same loan.
- Blanket / portfolio loan A blanket loan combines several properties under a single note and lien, which simplifies underwriting and closing versus financing five properties one at a time.
- Five separate individual loans, purely for the paperwork savings a blanket loan offers If the properties will not be held and financed together long-term, five individual loans can be more flexible to sell or refinance one at a time than a single cross-collateralized note.
Lenders in the directory
No lender here publishes a rule for this
This is an underwriting judgment, not a published threshold. None of the 37 lenders in the directory states a policy on it, so there is no honest way to build a shortlist — and a list computed only from which products a lender writes would tell you nothing you could act on.
What matters here is how the file is presented rather than which lender receives it. The sections below cover that. When you are ready to approach lenders, the directory shows what each one does publish, with the date it was verified.
What actually gets combined
A blanket loan underwrites the portfolio’s combined income and value rather than evaluating each property in isolation, and closes as a single note secured by all five properties rather than five separate mortgages. That consolidation is the entire appeal: one underwriting file, one closing, one payment, instead of five parallel processes running at once.
Why <a href="/glossary/cross-collateralization/">cross-collateralization</a> is the real trade-off
Because all five properties secure the same note, a problem with one property — a tenant default, a major repair, a title issue — can affect the whole loan rather than staying contained to that one asset. That is a meaningfully different risk profile than five independent loans, where trouble on one property has no direct claim on the others.
Why this page filters on loan size
No lender in this directory publishes a specific property-count threshold for a blanket loan — the relevant published figure is the maximum loan amount, since a five-property portfolio at typical rental price points commonly totals somewhere in the mid-six-figure range or higher. This page filters to lenders with a published maximum loan amount of at least $750,000 as a proxy for that combined size; the actual number for any specific portfolio depends entirely on the properties involved.
Releasing a single property later is a separate question
Selling or refinancing one property out of a blanket loan is not automatic — see releasing one property from a blanket for what that process typically requires and why it is worth understanding before signing the original note, not after.
What to have ready
- Rent roll and current mortgage payoff (if any) for each of the five properties
- Combined appraisal or valuation estimate for the portfolio
- Entity documents if the properties will be titled to a single LLC
Questions
Is a blanket loan cheaper than five individual loans?
What happens if one property in the blanket loan has problems?
Can I add a sixth property to an existing blanket loan later?
Terms used on this page
- Blanket Mortgage — A blanket mortgage is a single loan secured by two or more properties. It consolidates a portfolio into one payment, one rate and one maturity.
- Cross-Collateralization — Cross-collateralization means pledging more than one property as security for a single loan, so the lender can look to multiple assets if the borrower defaults.
- Debt Service Coverage Ratio (DSCR) — DSCR is a property’s gross monthly rent divided by its total monthly mortgage payment. A DSCR of 1.00 means the rent exactly covers the payment; 1.25 means rent exceeds the payment by 25%.