Blanket DSCR Loan on 2 sub 100k homes

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Blanket DSCR Loan on 2 sub 100k homes

Mendy M.
Rental Property Investor · Member since 2024 · 27 posts · 33 votes

Hi, I currently own 2 free and clear sub 100k homes in Rochester NY, I'd like to leverage those to buy more… wondering if anyone would do a blanket DSCR loan on both, at decent terms and costs…

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  • Nate HerndonPro Member
    Lender · Springfield, MO · Member since 2023 · 277 posts · 195 votes
    5mo

    Hi Mendy! The investor clients that I work with on sub-$100k value properties have two options:

    • Individual loans (x2 in your case) at great rates. Probably in the 6.50-7.50% range depending on credit and requested LTV. Processing fee discounts are given for running multiple files at once to either match or beat a blanket loan pricing under what I call "multi-pack" loan pricing. Minimum property value is $75k.

    • Blanket loan (as you're requesting) at less-ideal rates. Between 8.625-10.00% depending on credit and LTV. This program only has a $50k minimum property value requirement, but obviously has much higher rates due to their flexibility to do something that other programs will not.

    What I typically recommend is going with the individual loans that offer multi-pack discounts and taking the best rates available for your sub-$100k properties.

    [email protected]417-605-2196
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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    5mo
    Quote from @Mendy M.:

    Hi, I currently own 2 free and clear sub 100k homes in Rochester NY, I'd like to leverage those to buy more… wondering if anyone would do a blanket DSCR loan on both, at decent terms and costs…


     I think you will be better off doing a blanket loan on these. The fees will be high relative to the loan amount if you finance them individually. 

    [email protected]818-269-7983
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  • Matthew BernalBusiness Member
    Investor · Austin, TX · Member since 2021 · 497 posts · 127 votes
    5mo

    Yes, there are lenders that will do a blanket DSCR loan across both. I've seen this work well for investors looking to pull equity and scale. The main variables will be combined cash flow, LTV, and how the rents support the new loan.

    Some lenders are a bit cautious with lower-value assets individually, but packaging them together usually helps.

    If you want, I can share a few structures I’ve seen work in similar setups.

    [email protected]832-981-3190
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    5mo

    I have seen some blanket loans that are more cost-effective than single loans. I have been speaking with several lenders as I have 50 properties that I'm looking to get financed under a blanket loan

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  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    5mo
    Quote from @Mendy M.:

    Hi, I currently own 2 free and clear sub 100k homes in Rochester NY, I'd like to leverage those to buy more… wondering if anyone would do a blanket DSCR loan on both, at decent terms and costs…

    Most DSCR Lenders right now will do a minimum of 3 properties on blanket loans, especially at that size, the concern is typically economics for these portfolios. The good news is that its probably available to get two individual loans at the same (or even better) terms than you would with a blanket loan, and if its with the same lender with the same servicer portal, etc. its really not much more of a hassle

    [email protected]
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  • Carini Rochester
    Investor · Rochester, NY · Member since 2016 · 576 posts · 358 votes
    5mo

    Talk to Canandaigua National Bank and Lyons National Bank. These are small local banks that may have a product you're looking for.

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  • Andrew Zamboroski
    Lender · Member since 2021 · 495 posts · 130 votes
    4mo
    Quote from @Mendy M.:

    Hi, I currently own 2 free and clear sub 100k homes in Rochester NY, I'd like to leverage those to buy more… wondering if anyone would do a blanket DSCR loan on both, at decent terms and costs…

    Nate gave some good insight. It may be easier to get two individual loans than one blanket. Many blanket loans have gotten tighter in the last couple of years. In addition, there is often no partial release with a two property mortgage versus multiple.

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  • Cole Farrell
    Lender · Easton, PA · Member since 2019 · 90 posts · 32 votes
    4mo

    I see a lot of blanket loans and have had a good experience with them. Rates are comparative, if not the same. Depending on loan amount, there can be some perks. Its a good route to explore

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  • Guy Gottier
    Member since 2026 · 9 posts · 0 votes
    4mo

    Have you explored portfolio or blanket DSCR options yet? I've seen investors leverage multiple free-and-clear rentals to access equity for additional acquisitions, depending on rents, values, and the overall deal structure. This is something we look at regularly for investors. Curious what the rents and estimated values are on the two properties?

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  • Chad Davis
    Lender · Richmond VA · Member since 2012 · 307 posts · 32 votes
    3mo

    @Mendy M.Did you find a solution?

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    • Mendy M.
      OP
      Rental Property Investor · Member since 2024 · 27 posts · 33 votes
      3mo
      Quote from @Chad Davis:

      @Mendy M.Did you find a solution?

      i’m going to go to conventional mortgage route
      0Reply
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