Multiple property loan?

Question

Is there such a thing as getting a conventional loan for multiple properties all at once (or in quick succession of one another?)

Looking to purchase several properties and was hoping to be able to finance some of them

Chris Mason · Answer

Hi Thuy,

Multiple houses on one property is just one mortgage. For example the mortgage industry will typically view three houses on one lot as a "3 unit" property since the word "triplex" isn't to be found in the FNMA guidelines. Your insurance will view it as three houses (3 insurance policies), you think of it as three houses, and you will rent it out as 3 houses, but the mortgage industry will typically call it a single "3 unit" property. So one mortgage.

Multiple properties (different APNs, different lots), however, will be multiple mortgages. You can do them concurrently or one after the other.

That's all for FNMA-type residential financing. In the commercial mortgage world (shorter term, higher payment, higher rate, adjustable rate, slower to close, opaque guidelines), there are "blanket mortgages" where you can get one mortgage secured by multiple properties.

Brian G. · Answer

I'm not sure but @Chris Mason would know.

Mike Roy · Answer

@Thuy Pham-Satrappe - Conventional loans are for 1-4 unit properties on a single tax lot only.  "Blanket loans" exist for multiple properties and are sometimes a refi strategy that opens up conventional loans to those who are otherwise maxed out.  I would just keep in mind that there are potential disadvantages to a blanket loan.

1) Blanket loans generally do not offer the friendly terms you get with conventional financing.  Term might be shorter and rates might be higher.

2) The blanket loans essentially put all your eggs in one basket, so if one property goes south and hampers the ability to service your debt, all properties under that loan are at risk.

Jaysen Medhurst · Answer

@Thuy Pham-Satrappe, it won't be a "conventional" loan, but many banks can accommodate your ask. They'll group a bunch of properties under one loan. You'll need to call around to see who offers what. Make sure you set it up in such a way that you can sell off individual properties, if you choose to do so, without having to close out the whole loan.

Multiple property loan?

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