Up to 80% LTV · 1.05x DSCR · 680 FICO
Rental portfolio loans: several rentals, one loan
Roll a group of single family and 2-4 unit rentals into one blanket loan, qualified on the portfolio's cash flow at 1.05x, with cash out up to 75% of value.
Rental portfolio loan terms
| Use | Purchase, rate-and-term refinance or cash-out across a group of rentals |
|---|---|
| Property types | Non-owner-occupied single family, 2-4 units, townhomes, PUDs, warrantable condos. No vacation or seasonal rentals |
| Loan amount | Up to $2,000,000; each property worth at least $72,000 |
| Rate options | Fixed and adjustable; partial interest-only or fully amortizing |
| Leverage | Up to 80% LTV on a purchase or rate-and-term refinance; up to 75% on cash-out |
| Seasoning | 90 days to use value instead of cost basis |
| Minimum DSCR | 1.05x on the portfolio |
| Occupancy | At least 90% of units leased |
| Minimum FICO | 680 |
| Borrower | Business entity; full recourse with a pledge of the entity |
| Foreign nationals | Eligible, up to 65% LTV |
| Not eligible | Rural properties |
| Minimum number of properties, points, prepayment | Not published; quoted per portfolio |
When one loan beats five
Five separate DSCR loans mean five closings, five sets of lender and title fees and five payments to track. A blanket loan closes once and bills once. It also lets a strong property carry a weak one: the 1.05x test runs on the portfolio's combined cash flow against its combined debt service, not house by house.
The trade-off is that the properties are tied together. Selling one usually means paying down the loan by a release amount set in your loan documents, so ask about release terms before you sign if you expect to sell off pieces.
What the lender checks
- At least 90% of units leased across the portfolio
- Rent counted at the lower of lease and market for leased units, 90% of market for vacant ones
- Every property worth at least $72,000; no vacation or seasonal rentals; nothing rural
- A credit score of 680 or higher, and the portfolio held in an LLC or corporation with an equity pledge
- 90 days of ownership before value, rather than your cost, is used to size the loan
Run it house by house first
Before you send a portfolio, run them through the portfolio DSCR calculator, which shows each property's ratio and the combined test. The ones under 1.05x on their own are the ones the others have to carry, and knowing that up front tells you how much room the group has.
Questions people ask
What is a blanket loan?
One loan secured by several properties at once. You close once, make one payment, and the lender underwrites the group as a whole instead of each house on its own.
How big can the loan be?
Up to $2,000,000, with every property in the group worth at least $72,000.
Does every property need to cover its own payment?
No. The 1.05x DSCR test runs on the portfolio. A strong rental can carry a weaker one, as long as the group clears 1.05x and at least 90% of units are leased.
What credit score do I need?
680 or higher, a little higher than the 660 for a single-property rental loan.
Can I take cash out of the portfolio?
Yes, up to 75% of appraised value. Purchases and rate-and-term refinances go up to 80%.
Have a deal under contract?
Send the numbers. We will tell you plainly whether it fits and what the loan looks like.