HELOC - Ohio- 2025- Blanket DSCR?

Question

Am I looking for a needle in a haystack? We have a few free and clear rental properties we would like to take a HELOC on, but with their values all hovering around $100k we would like to form a blanket loan to maximize leverage. Is this possible?  Are all rental HELOCS underwritten like Fannie/Freddie or are there DSCR options out there?  Not looking to do a cash out refi as we don’t want to pay on the money monthly until we find the perfect property. Thanks for any tips!

Gabriella Zettelmeyer · Answer

Thank you so much to everyone for the replies. I’m interested in the interest only HELOCs and will just continue to call local credit unions/banks.

Upen Patel · Answer

@Gabriella Zettelmeyer Has many have stated, finding a Blanket HELOC is going to be nearly impossible. I haven't heard of it.

Since your properties are free and clear, any loan you get will be in the 1st position.

You can either do a Blanket DSCR. OR Individual DSCR. My recommendation would be to do individual DSCR loans. That way if at anytime, you want to sell one, you don't have any restrictions.

Erik Estrada · Answer

You may want to try a local commercial bank/CU for a HELOC. They are very tough to find nowadays.

If that does not work out, there are many DSCR lenders that can happily assist with a portfolio cash out

Simmy Ahluwalia · Answer

We just quoted a SFR blanket cash-out refi on 6 properties with a 6.375% fixed rate.

Arman Ahmed · Answer

@Gabriella Zettelmeyer

Hey Gabriella,

Blanket loans can be a great way to leverage multiple properties under one loan, but they’re not super common for smaller portfolios with lower-valued rentals. Most lenders, especially those tied to Fannie/Freddie, will underwrite based on DSCR and property values, so it can be challenging with $100k properties.

Some local banks or credit unions might offer more flexible HELOC or blanket options with DSCR underwriting, but it usually requires a strong relationship and solid financials.

If you’re not looking to pay on the money monthly until you find a deal, consider talking to lenders about interest-only HELOCs or construction loans that fit your strategy.

Hope that helps

Luke Feliciano · Answer

Hello Gabriella, nice to meet you. I'm a lender based in Cincinnati and I've heard of this loan before but not as a HELOC specifically. If you want to shoot me a PM, I can look into this for you and get you some information.

Remington Lyman · Answer

I have never heard of a good option for a HELOC on multiple rental properties. It is too risky from a bank's prospetive

Andrew Postell · Answer

@Gabriella Zettelmeyer so, it might be possible to find this type of a product but it would not come from a "normal" outlet. We would need some work to find it.  It is true that finding a "blanket" loan would be easier but it might be possible to find what you are looking for but from a local outlet.

• Visit your      local REI groups. There are many groups that meet across the      country. Some post here on the Bigger Pockets Marketplace. Many post on      meetup.com. Eventbrite.com too.  Even facebook will have some.       Networking is always a great practice and you never know who you      might meet there and what good information they have to share. Would      certainly recommend visiting if one is close to you.  Ask other investors in your market if there is such a lender.  They would know better than other other source.
• Calling - and then      there's this option. Which is what I have had to do. I had to call about 200      lenders (no exaggeration) to learn of 4 lenders who did this and I have      some tips. First, when calling banks target the smallest most community      based banks you can first. If you have never heard of them, and they have      one location - that's a good candidate. No big, national, publicly traded      banks will do this loan type. Second, try to ask for "LINES OF      CREDIT" instead of "HELOC". I know it sounds like I'm      splitting hairs but some banks write HELOCs in their residential      department....which won't write Investment Properties. And that      residential department will often not speak to the commercial department. So they'll      just say "sorry, we don't do it"....not even knowing that they      really do! So if you ask for a "line of credit on an investment      property" that should get you to the COMMERCIAL division. That's the      section of the bank we want. Now, most of these smaller banks may only      have 12 employees or so. So, don't get frustrated if they don't return your      call or aren't in the office. Just call back and be friendly. Maybe play      dumb a little "I don't know if I'm in the right place..."      "I'm sorry to disturb you, you may not be the right person for      this....", etc. Maybe someone can get you to the right person. Again,      be prepared to call A LOT.

Anyways, it might take some work but I think it's possible to find.  Our at least, worth trying to find.

Reach out if you need anything.  Thanks!

Devin Peterson · Answer

Yes wishful thinking on the heloc blanket. You can do a simple blanket cash out refi on all of those assets or a DSCR HELOAN on each of them individually. No fannie/freddie underwriting just DSCR

HELOC - Ohio- 2025- Blanket DSCR?

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