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Understanding Blanket Loans

3 Reasons You Want to Use Blanket MortgagesIntroduction: What is a Blanket Loan and What are the advantages of blanket financing?

This is a financial product that offers a wide range of features, including a line of credit. A line of credit can be used to help consolidate rental investment home debt and also for other purposes, such as investing in more property for your LLC.

Many Properties Under 1 Loan

This loan offers many benefits over other loans because it can be used in so many different ways. They are easier to get than most other loans and the interest rate is typically lower than on an unsecured loan.

How Does A Blanket Mortgage Loan Work?

Blanket loans are different than traditional loans because all your investment property loans go under one simple loan. These are usually NO-RATIO loans, meaning the loan is not dependent on your income tax or personal credit. The loan is decided by the income the property can provide.

Are Partner Buyouts Allowed for Rental Property Financing?

YES!

3 Common Misconceptions About Blanket Loan Financing

By now, it’s probably clear why blanket loans have become so popular with serious real estate investors. They are perfect for financing the purchase of multiple properties and come with plenty of additional benefits, too.

However, there’s a good chance you may have heard of certain traits associated with blanket loans that just aren’t true.

Here are the three most common misconceptions about these loans:

1. Business Owners Can Add Properties to a Blanket Loan After Closing

Perhaps because blanket loans cover multiple properties, many people mistakenly believe that you can add properties to one of these loans after closing has occurred.

Without a doubt, that would be a very advantageous feature. However, blanket loans will definitely not allow you to modify a deal post-closing. You need to know which properties you intend to buy before moving forward with the loan.

2. Not Able to Combine Different Property Types - A Myth

While every lender gets to exercise their own discretion when it comes to the deals they’ll finance, there’s no law that says blanket loans can’t be used for different types of properties.

3. Blanket Loans are Not Wraparound Mortgages

When a lender takes out a wraparound mortgage, they assume responsibility for an additional mortgage, as well. While both loans involve multiple mortgages, blanket loans also involve multiple properties. That’s the difference. A wraparound mortgage is only ever for one.

The Best Resource for Your Blanket Loan

Instead of looking at old-fashioned metrics like your personal income or debt-to-income ratios, our team strictly reviews what matters most: the actual real estate involved and the cash flow of your portfolio.

The long-term goal we have with all of our clients is to become their long-term financing partners. We want to help you increase your real estate portfolio as much as possible.

Ready to review our flexible financing options for your next real estate deal? Then check out our selection of blanket loans today.

Conclusion: Start Taking Over Control of Your Finances Today By Looking into Blanket Loans.

 

Rental Home Financing Investment Loan Products

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Rental Home Financing
9465 Counselors Way
Suite #200,
Indianapolis, IN 46240

ABOUT US
Rental Home Financing originates commercial blanket loans with a commercial purpose and is not currently authorized to make such loans in 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). 

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