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Rental Home Financing

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Displaying items by tag: blanket loan mortgages

What is a Blanket Loan?

blanket loanFor 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!

Published in Blanket Loan Mortgages

Your Comprehensive Guide to Blanket Mortgage LendersBlanket 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.

Published in Blanket Loan Mortgages

How to Choose Blanket Loan Lenders for Investment PropertyInvesting 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.

Published in Blanket Loan Mortgages

Residential Rental Property

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
Credit Score Max LTV
680 75
670 70
660 65
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%
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
Term Standard Step Down
5 Year Term Yield Maintenance 5-4-3-2-1 (25bps rate add on)
10 Year Term Yield Maintenance 10-9-8-3-2-1 (25bps rate add on)
Seasoning After 90 days of ownership we will lend off appraised value
<90 days ownership we will lend off cost basis (purchase price + rehab)
Occupancy

10 or more doors

90%
5-9 Doors 80%
Multi-unit properties 85%
 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
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

 

Rental Home Financing Investment Loans

Published in Blanket Loans