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Displaying items by tag: blanket loan mortgages
What is a Blanket Loan?
For a real estate investor with multiple properties, a blanket mortgage covers all of them under one loan, it is a cost-effective and time-efficient way to reduce the stress of managing multiple loans. This is the "cliff-notes" version for learning about blanket loans. For those who are wanting to dig into details we wrote an extensive article on "All About Blanket Loans".
Investment real estate rental mortgages can be complicated, each new mortgage creates more work. Without a blanket loan, the more you keep adding to your portfolio, you are adding new mortgages for each one; creating a nightmare of paperwork, payments, & accounting challenges.
Simplifying Investment Portfolios
With all the concerns of owning investment property for the real estate investor, like closing costs, the release clause, keeping up with multiple properties but under an individual properties loan, keeping up with all those pieces of real estate under a traditional mortgage with balloon payments and interest rates of a single mortgage for each of the rental properties; makes one wonder how real estate developers or property owner can keep up with any of the home loans at all.
With all the paperwork and multiple monthly payments to mortgage lenders, the home loans have drawn in house flippers instead of long time investors. Then people find out about types of loans called blanket mortgage loans. So let's learn more all about blanket loans.
All About Blanket Loans
A blanket mortgage solves the confusion of multiple loans by placing all properties under one loan with one monthly payment. This is completely simplifying the investment portfolio management process.
With a long-term loan, real estate may be sold without initiating a “sale case”, allowing you to use the proceeds of the sale to buy multiple properties. With Rental Home Financing, you can use a blanket loan for purchase or refinance. For example, if you buy a portfolio of a dozen rental properties, a blanket loan allows you to get a mortgage that covers all ten of them under one mortgage. Simple!
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Blanket Loan Mortgages
Blanket loans can be a crucial investment tool for property investors but finding blanket mortgage lenders can be challenging. They aren’t as proliferate as conventional mortgages and they might have more stringent qualifications.
While it can be tough to find blanket mortgage lenders, there are property investment strategies you can take to make the process less time-consuming. Review this comprehensive guide to blanket mortgage lenders before you start your research.
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Blanket Loan Mortgages
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Investing in multiple properties is a practical investment strategy, but if you don’t have the cash, you might be wondering how you can take advantage of this financial tool. Blanket loans are one solution to purchasing multiple properties.
Finding solutions for this type of investment can be challenging. Blanket loan lenders can be hard to find, but there are ways you can improve your chances of finding the best financing offers. Review this guide to choosing the right blanket loan lender for your investment property.
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Lending Matrix for Blanket loans of 3 or more rental doors on residential rental property.
| Geography | Nationwide Financing (Except North Dakota, South Dakota, Alaska & Hawaii) | |||||||||
| Loan Purpose | Purchase or Refinance, Cash out | |||||||||
| Loan Amount Range | $300k-$50MM | |||||||||
| Terms | 5 or 10 year fixed rate balloon with up to a 30 year amortization | |||||||||
| MAX LTV | Up to 75% on stabilized lease ready properties (SFR, TH, 2-4 family, Condos) & Multi units (max 20 units) | |||||||||
| Credit Grid | No Bk’s last 2 years and No Foreclosures | |||||||||
| Recourse Options |
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| Non Recourse | 620 Minimum credit score for US Citizens LTV for Non-recourse will be based on overall credit/loan profile Foreign Nationals treated as Non-recourse, OK up to 75% |
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| Minimum DSCR | 1.15% ** Interest only available at 70% LTV and below, 670 score needed | |||||||||
| Minimum Property Value | $50k for 75% LTV, $40k- $49.9k limited to 50% LTV Multi Family $30k per unit | |||||||||
| Prepayment Penalties |
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| Seasoning | After 90 days of ownership we will lend off appraised value <90 days ownership we will lend off cost basis (purchase price + rehab) |
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| Occupancy |
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| Fees | Third party Appraisal Fees collected upfront at deposit to submit RHF charges 1-2% origination and $2500 underwriting fee at close Customary title charges at close No application fees |
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| General UW Tips | Loan is assumable with lender approval, with a fee equal to the >$10k or 1% of the loan amount Monthly payment includes, Taxes, Insurance and Capex Capex- $450 SFR- $350 2-4 Per Unit- $250 for multi units and condos (per year) No income verification- qualifies on the cash flow of the portfolio |
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Blanket Loans
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Rental Home Financing
9465 Counselors Way
Suite #200,
Indianapolis, IN 46240
About Rental Home Financing:
Rental Home Financing, as the best mortgage lenders we originate rental home loan products and cash out refinance investment property loans as the best investment property refinance lenders. Commercial blanket loans are available with a commercial purpose to suit your needs.
Also, as DSCR loan specialists, we are currently authorized to make such loans in most all areas of the United States. Specific circumstances will determine whether we have the ability approve/close portfolio rental home loans in your state(s). When you are ready to get a mortgage for rental property, we are ready to serve you.