Blanket Loans Explained: Financing Multiple Rental Properties Under One Mortgage
Once you're holding a handful of rentals, tracking a separate loan for each one becomes its own job. A blanket loan consolidates them — here's how it actually works.
What a blanket loan is
A blanket loan is a single mortgage secured by two or more properties at once, rather than one loan per address. Instead of five separate payments, statements and renewal dates, you manage one loan covering the whole group.
Why investors use them
Simplified servicing. One payment, one closing, one set of loan documents instead of many.
Portfolio-level underwriting. The lender evaluates the combined cash flow and collateral of the whole portfolio, which can help properties that wouldn't individually qualify on their own.
Efficient scaling. Acquiring or refinancing several properties in one transaction can be faster and less repetitive than doing it one loan at a time.
Who blanket loans make sense for
Investors already holding multiple rentals who want to refinance them together, or investors acquiring several properties in one deal (a small multifamily portfolio purchase, for example) are the most common fit. It's generally not the right tool for a first single rental purchase.
Trade-offs to know
Blanket loans can carry more complex terms and higher minimum loan amounts than a single-property DSCR loan, and cross-collateralizing properties means an issue with one property can affect the whole group. Weigh the servicing simplicity against that added complexity.
Consolidating a growing portfolio?
Tell us how many properties you're looking to combine and we'll see if a blanket structure makes sense.
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