Blanket Mortgage Lenders?

Question

I have an opportunity to buy a group of 4 or 5 properties and wondering if there are any lenders out there that still do blanket mortgages where I could get one loan for these group of 4 or 5 homes vs. getting an individual mortgage on each property?

River Sava · Answer

Hey Tom -

Yes, sounds like a DSCR blanket would be a viable option. LTV would likely be between 65-70%. What are the individual prices?

Chad Davis · Answer

@Tom Thomson Need more info on properties but blanket mortgages are doable

Erik Estrada · Answer

Yes you can do a blanket loan on a long term DSCR loan. There are a few options that allow a partial release (normally most lenders will not allow this). Happy to connect

AJ Exner · Answer

Hey Tom,

As you can kind of see from the responses, there are still plenty of groups doing these, however Underwriting for them is still pretty tricky and you are going to run into minimum property values as well as minimum loan amount(s).

Most groups want to see properties all worth at least about 100k, but if they are below that and still cash flowing, you might still have a couple of options as long as the total loan amount meets certain thresholds.

I will say, if you go in the direction of individual mortgages, you might be able to get higher leverages on each property (most blanket loans cut back leverage a bit even if you meet the thresholds) while also providing more flexibility in downstream options to sell/rehab/refinance each property without additional financial implications.

Good luck, if you need any help, would love to connect and talk through options!

Scott Wolf · Answer

My firm can get those done if the properties are all worth over $100k.

Mark Munson · Answer

Hi @Tom Thomson

I would use the Find a Lender tab here on BP. There are plenty of lenders that will do blanket loans and at 75-80% LTV. Just make sure they have a partial release clause if you want to sell one in the future. Also, ask the lender what the payoff amount would be if you sell one, usually it is 110-120% of the prorated portion of the loan. Feel free to connect if you need any advice.

Devin Peterson · Answer

Tom, What is the value per property give or take? There are a handful of lenders that have blanket loan options. Are they all centrally located to one another? Happy to connect to chat more.

Chris Seveney · Answer

@Tom Thomson

I have seen those have better luck with private type lenders / hard money lenders who do longer term programs provide these types of loans

If properties are near one another a local lender/bank would also consider it but what we have found is they must be pretty close

Blanket Mortgage Lenders?

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