What Reserve Requirements Apply to Blanket Loan Portfolios?
Yes, reserves are required. Like most commercial real estate loans, our blanket mortgage programs mandate monthly escrow reserves for taxes and insurance (commonly referred to as PITI). These funds are collected with your regular payment and held in a dedicated escrow account (sometimes called an impound account). The loan servicer pays property tax and insurance bills directly as they come due, ensuring your portfolio stays current without requiring separate lump-sum payments.
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No application fees, no tax returns required. Most loans close in 2-4 weeks with competitive rates based on your portfolio.
Tax & Insurance Escrows
Monthly escrow payments cover property tax and insurance bills as they come due.
No CapEx Escrows
No monthly capital expenditure reserves are collected as part of the loan payment.
Draw Process
Submit invoices for qualifying expenses and the servicer releases funds promptly.
Portfolio Protection
Reserves ensure properties stay well-maintained, protecting both collateral and income.
Beyond the standard tax and insurance escrows, no additional capital expenditure (CapEx) reserves are collected as part of the monthly loan payment. Borrowers are responsible for budgeting their own maintenance and repair funds independently. We recommend setting aside a reasonable amount for deferred maintenance -- roofs, HVAC systems, appliances, and other major components -- but this is not a loan requirement.
Reserve requirements protect your investment by ensuring capital is available for major maintenance
What Do Reserve Requirements Include?
Our reserve structure is straightforward: tax and insurance escrows collected monthly, paid by the servicer when due. There are no mandatory CapEx reserve escrows added to the monthly payment.
- Tax and insurance escrows -- collected monthly, paid by the servicer when due
- Cash reserves at closing -- 6-12 months PITIA required at the time of closing
- No monthly CapEx escrows -- borrowers manage their own maintenance budgets
Reserve requirements are standard across commercial lending and are a key reason blanket loans carry favorable terms. They demonstrate to investors in the secondary market that the portfolio is well-maintained and the loan is properly serviced. If you are refinancing an existing portfolio, having documented maintenance history can work in your favor during underwriting.
Loan Reserve Quick Reference
- Tax and insurance escrows collected monthly, paid by servicer when due
- No monthly CapEx escrows -- borrowers manage their own maintenance budgets
- 6-12 months PITIA cash reserves required at closing
- Documented maintenance history helps during refinance underwriting
Get a Custom Reserve Estimate for Your Portfolio
Reserve amounts depend on property count, condition, and location. We will provide a detailed breakdown during our evaluation so there are no surprises at closing.
Learn more about how our blanket and multifamily loan programs are structured to protect your investment while keeping cash flow predictable.