The Quick Read: A blanket loan on a package of rentals is sized by the lower of two limits. One is the leverage cap on the pool’s total appraised value. The other is the coverage floor on the pool’s total rent. Across our wholesale network, the 30-year portfolio structure reaches up to 80% of value on a purchase or rate-and-term refinance, subject to lender guidelines.
- No single blanket percentage exists. The amount is whichever is smaller: the value-based limit or the income-based limit.
- The 30-year portfolio structure covers 2 to 20 properties, with loan sizes from $300,000 to $5,000,000 (larger balances on review).
- Coverage is measured on the pool, so strong doors can offset weak ones. The weak door still carries risk.
- Cash-out on any pool never exceeds 75% of pooled value.
- Properties held in an LLC are generally eligible, depending on program guidelines. Every property still needs a lease or an appraiser-supported market rent.
What a Blanket Loan Is (and What It Isn’t)
A blanket loan is one loan secured by several properties. You sign one note, and the lender records a lien against every deed. Each property secures the whole debt, not just its own slice.
Three terms get tangled here, and they are different things. A blanket is a structure. A portfolio loan, strictly speaking, is a loan the lender keeps on its own books. DSCR is an underwriting method. It compares rent to the full monthly obligation of principal, interest, taxes, insurance, and association dues. A blanket can use DSCR underwriting, and so can a loan on a single rental.
One more distinction matters. Closing five separate loans on the same day is not a blanket. A true blanket has one note and a lien on every property.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage.
How Is the Amount Set?
Two Tests, Lower One Wins
The loan amount is the smaller of what the pool’s value supports and what the pool’s rent can service. Underwriters run both tests. Whichever produces the smaller number binds.
Test one: leverage. Aggregate loan-to-value is the total loan divided by the total appraised value across the pool. On the 30-year portfolio structure, the ceiling is up to 80% of value on a purchase or rate-and-term refinance. On the rental portfolio term loan, it is up to 75%. Cash-out on either structure never exceeds 75% of pooled value.
Test two: coverage. Add up the rent on every door. Divide it by the combined monthly obligation on the new loan. Many select programs start at a 1.00 floor. A bigger loan means a bigger obligation, which means a lower ratio. So the coverage floor caps the loan too.
Here is how that plays out. When the pool’s rent comfortably clears the floor, the leverage cap usually binds. When rent is thin compared with value, the coverage test binds. Then the loan shrinks until the ratio clears, or you bring more equity. In practice, high-priced, low-rent doors hit the coverage wall first. Cheaper, high-rent doors hit the leverage wall first.
A worked example (illustrative only)
Picture an LLC buying four rentals. These ratios are modeled assumptions, not market data. Assume each door carries an equal share of the monthly obligation.
| Door | Coverage on its own | Effect on the pool |
|---|---|---|
| A | 1.40x | Lifts the pool |
| B | 1.25x | Lifts the pool |
| C | 1.10x | Roughly neutral |
| D | 0.90x | Drags the pool down |
| Pool | about 1.16x | Clears a 1.00 floor |
The pool clears the floor even though door D does not. A door below 1.00 can sit in a pool, but what underwriting tests is pooled coverage, leverage, and terms, subject to underwriting. In this example the income test has room, so the leverage cap decides the amount.
If a purchase price comes in under appraised value, as it often does on a discounted bundle, lenders generally size off the lower figure. A bargain package therefore funds less than the appraised value alone would suggest.
Which Blanket Structure Fits?
Across our wholesale network, two structures cover most packages. The first is a 30-year portfolio DSCR loan. The second is a rental portfolio term loan with shorter fixed terms. The figures below are program ceilings and floors, not quotes, and each file is underwritten individually.
| Feature | 30-year portfolio loan | Rental portfolio term loan |
|---|---|---|
| Size of package | 2 to 20 properties | 5+ properties or units |
| Loan size | $300,000 to $5,000,000 | $500,000 to $50,000,000 |
| Leverage | Up to 80% of value | Up to 75% of value |
| Term | 30-year, interest-only available | Fixed 3, 5, 7, or 10 years |
| Property types | SFR, 2-4 unit, condo, townhome | Adds small multifamily |
Larger balances on either structure are reviewed case by case. The term loan ends in a balloon at maturity. It can be recourse or non-recourse. A non-recourse loan looks to the real estate, with recourse limited to carve-outs such as fraud and bankruptcy. A recourse loan carries a personal guarantee. The term loan’s prepayment structure is yield maintenance, which runs 54 months on the 5-year note and 114 months on the 10-year note. It also allows multi-market cross-collateralization, so properties in several markets can sit under one loan.
Credit floors for pools generally start around 640, and some portfolio structures want 680 or 720. That differs from a loan on a single rental, where a 620 floor exists in parts of the network.
How Underwriting Treats a Package, Step by Step
1. Pool definition. Every property goes on one note. A lien is recorded against each deed.
2. Appraisal and rent opinion on each door. Each property is appraised and documented separately. Appraisers commonly use Form 1007 for a one-unit rental’s market rent and Form 1025 for 2-4 unit properties, as shown in the Fannie Mae Selling Guide. The Form 1025 report shows the appraiser reconciling market rent unit by unit. DSCR guidelines, not the agency’s, govern the loan itself. Every door needs a lease or an appraiser-supported market rent.
3. Pooled coverage. Total rent is divided by total obligation. Strong doors offset weak ones.
4. Leverage test. Aggregate LTV is checked against the structure’s cap. Reserves, entity documents, and valuation support get closer scrutiny as the package grows.
5. Allocated amounts. The loan documents assign each property a share of the debt. That share becomes the base for any later release.
6. Entity review. The deed, the insurance named insured, and the borrowing entity should all match.
7. Closing. Old liens are paid off. The new blanket lien is recorded on every property.
The LLC Layer
Most packages like this sit inside one or more LLCs. A special-purpose entity, typically an LLC, is required on some structures, subject to lender program eligibility. Expect the lender to ask for the operating agreement, a good-standing certificate, and a guaranty from the owner where the loan is recourse.
One LLC holding every door is the simplest setup. Title is clean, and one entity signs one note.
Several LLCs on one note works, but it adds paperwork. Each entity signs, and each deed must match its borrower. It also thins the liability wall you built. Cross-default means trouble at one property can reach doors held by the other entities. Many investors form separate LLCs to isolate risk, and a blanket partly undoes that isolation.
If the properties currently sit in your personal name, plan the title transfers before the loan application. Lenders and title companies want to see who owns what, and a mismatch stalls the file.
What Happens to Your Weakest Door
Pooling blends the number. It does not erase the weak property. Return to the four-door example. If door D is dropped from the package, the numbers change.
| Scenario | Doors | Pooled coverage |
|---|---|---|
| All four doors | A, B, C, D | about 1.16x |
| Drop the weak door | A, B, C | about 1.25x |
The pool gets stronger without D, but you also finance one fewer property. A better question is whether D belongs on this loan at all. A door that is weak on rent, high on expenses, or short on appraised value may do better on its own note.
The same logic works in reverse after closing. If one tenant leaves or an appraiser trims a rent opinion, the whole pool’s ratio moves with it. Sensitivity runs across the pool, not door by door.
DSCR also measures only rent against the monthly obligation. Clearing 1.00 does not mean positive cash flow. Repairs, vacancy, management, utilities, and capital expenses all sit outside the calculation.
Release Clauses: The Exit Door
Cross-collateralization is what makes a blanket work for the lender. It is also what makes selling one property harder. A release clause lets you sell or refinance one property out of the pool by paying a defined amount. It exists only if it is written into the note. Nav’s explainer on cross-collateralization stresses how much harder a sale becomes without a release clause. It also notes that some lenders may modify cross-collateral terms.
Here is how release terms generally work on a pool:
- The loan documents assign each property an allocated balance at closing.
- The release price runs above that allocated balance.
- The remaining properties must still cover the remaining debt, so the pool may be retested.
- Partial releases, substitutions, and one-property sales follow the loan documents and the lender’s release terms.
Without a release clause, your options narrow to paying the whole loan off, refinancing the whole pool, or holding it. Negotiate release terms before closing, not after you have a buyer. Plan a partial exit on day one, because the remaining pool’s coverage after a sale is what the lender will test.
Where the General Rule Breaks
Cash-out. The leverage cap on cash-out is lower than on a purchase. Cash-out on a pool never exceeds 75% of the pooled value. On recently acquired properties, seasoning rules apply: leverage is limited to 90% of total cost in the first six months of ownership and 100% from six to twelve months. A rate-and-term refinance carries no cost restriction. For a deeper comparison, see Lendmire’s piece Separate Cash-Out Refinances vs a Blanket Loan for an LLC Rental Portfolio.
Short-term rentals in the pool. Income support for these doors varies. Lenders look at hosting history, a management statement, or an appraiser’s rental analysis. On a refinance, documented hosting history generally carries more weight than a projection. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
Ineligible property. Owner-occupied property, mobile homes, co-ops, mixed-use property, and commercial property are ineligible in the pool. Manufactured homes (single- and double-wide), log homes, and barndominiums are not offered through the network’s DSCR programs.
Small pools. Lender appetite varies, and a two-door package may land better on the 30-year portfolio structure than on the term loan, which starts at five properties or units.
Reserves. Reserves vary by lender, leverage, loan size, and transaction type. Many files want about 6 months of PITIA, which is principal, interest, taxes, insurance, and association dues. Loans above $1,500,000 typically step up to about 9 months. The rental portfolio term loan instead holds reserves for taxes, insurance, and capital expenditures.
A larger down payment can lift the ratio by shrinking the loan. It never overrides leverage caps, credit floors, reserve rules, or property eligibility. The strongest packages clear both tests: enough equity and enough rental coverage.
Blanket or Separate Loans?
A blanket gives you one closing, one servicer, and one payment. Separate notes keep each door isolated, so you can sell or refinance one property freely. The cost is more closings.
Blankets suit uniform, stable portfolios where every door performs similarly. Separate notes suit mixed-strength ones. If your pool depends on one strong property to carry a weak one, that is a warning sign, not a feature. Lendmire’s piece on a single blanket loan versus several DSCR loans at ten doors in an LLC portfolio walks through that decision. Our complete DSCR loans guide covers how DSCR underwriting works across structures.
Key Terms Defined
- Blanket loan: One loan secured by liens on several properties.
- Aggregate LTV: The total loan divided by the total appraised value of the pool.
- Pooled coverage: Total rent across the pool divided by the total monthly obligation.
- PITIA: Principal, interest, taxes, insurance, and association dues, the full monthly obligation.
- Cross-collateralization: Each property secures the whole debt, not only its own share.
- Allocated balance: The share of the debt assigned to each property in the loan documents.
- Release clause: A note provision that lets one property leave the pool for a defined price.
- Seasoning: The waiting period a lender expects between buying a property and refinancing it.
- Non-recourse: A loan that looks to the real estate, with personal liability limited to carve-outs.
Before You Submit a Package
- A current rent roll and a signed lease for each door, or an appraiser-supported market rent.
- Entity documents: operating agreement, good-standing certificate, and ownership details for each LLC.
- Insurance on every property, with the named insured matching the borrowing entity.
- Proof of reserves sized to the loan, subject to lender guidelines.
- A decision on which doors belong in the pool and which should stay on their own notes.
This article is general information, not legal or tax advice. Tax treatment varies, so consult a qualified professional such as an attorney or CPA about your own situation.
Frequently Asked Questions
How much will a blanket DSCR loan fund on my package?
It depends on the lower of two limits: the leverage cap on pooled appraised value and the coverage floor on pooled rent. On the 30-year portfolio structure, leverage reaches up to 80% of value on a purchase or rate-and-term refinance. Cash-out never exceeds 75% of pooled value. Your actual amount depends on appraisals, rents, credit, and lender guidelines.
Can strong properties carry a weak one?
Yes, because coverage is measured on the pool. A door below 1.00 on its own can sit in a pool, but underwriting tests pooled coverage, leverage, and terms, subject to underwriting. The weak property still carries risk. If its rent drops, the pool’s ratio drops with it.
Can two different LLCs share one blanket?
Often yes, subject to program terms. The tradeoff is cross-default, which can thin the liability separation between your entities.
Can I sell one property without paying off the whole loan?
Only if the note includes a release clause. The release price runs above that property’s allocated balance, and the remaining pool may be retested. Without a release clause, you would pay off, refinance, or hold the pool.
Is the DSCR on a blanket loan the same as positive cash flow?
No. DSCR compares rent to the monthly obligation only. Repairs, vacancy, management, utilities, and capital expenses sit outside it, so a pool can clear 1.00 and still run thin.
Next Steps
If you are buying or refinancing a rental property and want to see how the numbers work, Lendmire can help you compare DSCR loan options based on the property income, credit profile, leverage, and investor goals. As a broker, Lendmire arranges these loans through select lenders in its wholesale network, across 41 markets including Washington, D.C. Programs and eligibility are subject to lender guidelines. This is not a commitment to lend.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage built around DSCR investor lending, with programs available in 41 markets, including Washington, D.C. DSCR lenders commonly evaluate rental-income coverage instead of personal income paperwork — a practical fit for LLC-owned and multi-property investors. Terms vary by lender, property, leverage, and program. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
3. Nav – Cross collateralization
This article is part of Lendmire’s DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Get a DSCR Loan for an Airbnb in Tennessee? · How to Consolidate LLC Rentals Into One Portfolio DSCR Loan · Landlord at Five Doors vs Operator at Twenty on a Portfolio DSCR Loan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.