How to Know if You Need a Blanket Loan

Blanket mortgages sound like loans you take for that really expensive ReST bed you had your eye on. Even real estate professionals aren’t always aware they exist.

These multi-property loans are often confused with products like wraparound mortgages. But a wraparound mortgage is just a fancy second lien, whereas a blanket mortgage is a first lien.

Not only are blanket mortgages easier to deal with than those other complicated loans, but they’re typically offered only by specialized companies.

This is because traditional banks don’t have the capacity to train staff on how to help professionals who own multiple properties.

The internet makes it easier than ever to find lenders, check cashing, and other financial services. And we’re no longer stuck using the same handful of lenders our parents did. Today’s financial market is filled with reputable blanket loan lenders and other financial institutions that understand the challenges of a changing market.

You can’t afford to wait five or ten years to get started with a portfolio of investment properties. Research shows rents are rising in major cities like Phoenix, AZ and Las Vegas, NV. Millennial homeownership in the gig economy is nearly 10 percentage points lower than in previous generations.

You weighed the pros and cons of blanket loans carefully. It’s the right option for you, but you’re not sure who you can trust in the industry. Who can blame you?

Traditional mortgage lenders aren’t equipped to handle some of the more creative and advanced investment strategies. Your loan servicer is an expert in first-lien mortgages for single-family dwellings. The vast majority of loans she’s closing are government-backed FHA and VA loans.

Outliers she deals with are 2nd mortgages, reverse mortgages, and home equity lines of credit (HELOC). That’s about the extent of your current loan servicer’s knowledge, and beyond that, you’re stuck dealing with a commercial real estate agent. 

What are some of the benefits of a Rental Home Financing loan versus a traditional residential home loan?

Rental Home Financing’s loan products are specifically tailored for rental property investors that have been acquiring houses over the past several years.  We understand the limitations Fannie Mae, Freddie Mac and local banks have on this type of property. 

Everyone you speak with on our team, is dedicated to serving this undeserved segment of the market.

As a responsible rental property owner, you're always looking for ways to improve your bottom line. And one of the best ways to do that is by refinancing investment property with a loan that has more favorable terms.

A Rental Home Financing loan offers a number of benefits that you just can't get with a traditional residential home loan. For starters, our loans are available with terms of up to 30 years, which means you can take advantage of lower monthly payments. Additionally, our loans don't require any personal income documentation, so you can get approved even if you're self-employed or have other complicated financial circumstances.

But perhaps the biggest benefit of all is that our loans allow you to finance up to 80% of the value of your investment property, which can help you free up cash for other investments or simply provide more breathing room in your budget.

Keep reading to learn more benefits available with our loan rental home loan financing.