The Quick Read: A blanket loan charges lender fees once on the whole balance, but third-party work like appraisals and title still repeats on every property, and entity paperwork repeats for every LLC. The savings come from fewer duplicated loan-level fees, not from cheaper money, and they can shrink fast as property and entity counts grow.
- Lender-level fees (origination, processing, note setup) are typically charged once, but they are calculated on a larger total balance.
- Appraisal, title and recording work stays property by property.
- Every LLC that holds title usually has to join the loan as a borrower or pledge its property, so entity documents repeat per LLC.
- The 30-year portfolio DSCR loan covers 2 to 20 properties under one note, with coverage measured on the pooled rents.
- The right comparison is total cost over the hold, not the closing statement alone.
What a Blanket DSCR Loan Is
A blanket loan is one note secured by two or more rentals. Here, “portfolio DSCR loan,” “blanket loan” and “cross-collateralized loan” all mean that one thing. (A bank’s “portfolio loan,” meaning a loan the bank keeps on its own books, is a different idea.)
Lendmire is a broker. It arranges these loans through a wholesale network of DSCR lenders across 41 markets, including Washington, D.C., and the lenders set the fees and make the credit decisions. The structure itself is straightforward: one note, one payment, one closing event. What the investor pays at that closing depends on which charges the structure collapses and which it cannot.
Key Terms Defined
Blanket loan: One note secured by several properties, sometimes called a portfolio or cross-collateralized loan.
Origination fee: The lender’s charge for creating the loan, usually a percentage of the whole balance.
Vesting: The name in which title to a property is held, such as a specific LLC.
Allocated balance: The share of the loan the lender assigns to each property for release and payoff purposes.
Release clause: A contract term that lets a property leave the lien on terms the loan documents set.
Pooled coverage: Total rent divided by total debt service across every property in the loan.
Which Charges Happen Once, Per Property, or Per LLC
Lender-level charges happen once. Property-level charges repeat. Entity-level charges repeat for every LLC. That three-bucket split is the whole mechanic.
| Charge | Once per loan | Per property | Per LLC |
|---|---|---|---|
| Origination / underwriting | Yes | No | No |
| Processing and note setup | Yes | No | No |
| Appraisal and rent support | No | Yes | No |
| Title work and lender’s policy | No | Yes | No |
| Recording | No | Yes | Varies by county |
| Entity documents | No | No | Yes |
| Re-titling into an LLC | No | Sometimes | Yes |
The per-property column comes from how title insurance works. A lender’s title policy ties to each property securing the loan, as the Fannie Mae Selling Guide on title insurance explains in its requirement that a policy accompany each loan. Rent evidence and value support follow the same logic, because each door needs its own.
One caution on the top row. A single origination fee on a larger balance can cost more in dollars than the same fee on one home. One fee is not the same as a small fee.
How Underwriting Treats the Pool
Underwriting a blanket loan runs in a fixed order, and each step affects what shows up on the closing statement.
1. Eligibility screen. On the 30-year portfolio DSCR loan, the pool is 2 to 20 properties, with loan sizes from $300,000 to $5,000,000 (larger balances on review). Eligible types are single-family, 2-4 unit, condo and townhome. Owner-occupied property, co-ops, mixed-use and commercial property are out. Manufactured and mobile homes are not reviewable on these programs.
2. Borrower review. The credit floor on the portfolio programs is 640, with some structures asking for 680 or 720. Some structures require a special-purpose entity, typically an LLC. Recourse loans carry a personal guarantee.
3. Property-level evidence. Every property still needs a lease or an appraiser-supported market rent, and its own value support.
4. Pooled coverage. Pooled rent is measured against pooled debt service, with a 1.00 floor on the pool. Stronger properties can offset weaker ones. A rental under 1.00 on its own can sit in the pool, and underwriting tests the pooled coverage, the leverage and the terms together.
5. Leverage. The 30-year structure reaches up to 80% of value on a purchase or rate-and-term refinance. A cash-out never exceeds 75% of pooled value.
Clearing 1.00 is a statement about rent against the full monthly obligation. It does not mean positive cash flow, because repairs, vacancy, management and capex sit outside the ratio.
When the Properties Sit in Different LLCs
Several LLCs on one note is the hardest fit, and it is where the per-entity bucket grows. If the doors sit in different LLCs, every title-holding entity must either sign as a borrower or pledge its property as collateral. Each entity then brings its own documents. Many lenders prefer one borrowing entity, or a group under common ownership, and programs differ on how much variation they accept.
Investors in that position generally see three structures:
| Structure | Paperwork | Entity separation |
|---|---|---|
| Two separate notes | Repeats per loan | Each LLC stays independent |
| Both LLCs pledge to one note | One package, more entity documents | Thinned by cross-collateral |
| A parent entity borrows | One package | Depends on parent structure |
Lendmire’s piece How to Substitute a Property in a Blanket DSCR Loan Across LLCs covers how substitution works once the structure is in place.
Re-titling adds its own cost. A lender may want properties held in your own name moved into an LLC before closing. Deeding a property into an LLC while a mortgage is in place can trigger that mortgage’s due-on-sale clause, so attorney review comes first.
How Costs Land on Each LLC
On the settlement statement, a blanket loan shows one set of lender charges and a line of property-level charges for each door. The lender or title company allocates the loan balance across properties for release purposes, and costs follow the property or entity that generated them. Subject to program terms, each borrowing LLC also needs a clear funding path: which entity’s account wires the cash to close, and how that money got there.
That raises a bookkeeping question. Each LLC keeps its own books, and the contribution trail should match who paid what. Whether loan costs are capitalized or expensed is a question for a CPA. Tax treatment varies by situation; consult a qualified tax professional.
Closing costs are also uneven across jurisdictions. Recording charges and title rates vary by county and state, and the rental portfolio term loan allows properties in several markets under one note. A multi-county blanket therefore saves less than a single-county one, because more of the cost sits in the per-property bucket.
The Two Portfolio Structures
The 30-year portfolio DSCR loan is the entry point. It runs 2 to 20 properties, offers fixed or adjustable types with a 30-year term, and has an interest-only period available.
The rental portfolio term loan is built for five or more properties or units, with loan sizes from $500,000 to $50,000,000 and leverage up to 75% of value. Terms are fixed at 3, 5, 7 or 10 years with a balloon at maturity. Recourse and non-recourse versions exist, and a non-recourse loan looks to the real estate, with recourse limited to carve-outs such as fraud and bankruptcy. Prepayment runs on yield maintenance. Small multifamily of five or more units is eligible only on this term loan. Reserves are held for taxes, insurance and capital expenditures. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Prepayment terms are not closing costs, but they belong in the all-in price. All figures here are program ceilings and floors, subject to lender guidelines, not quotes.
Where the Savings Stop
Savings shrink or reverse in predictable places:
- Many properties, many counties. More doors mean more appraisals, title policies and recordings.
- Many LLCs. Entity documents and re-titling stack up.
- One-at-a-time exits. If you plan to sell or refinance doors individually, the release process can erase the closing savings. The release price runs above the property’s allocated balance, and the remaining properties must still cover their debt service.
- Low-balance properties. Small rentals gain little from joining a pool.
- Balloon structures. Some blanket products carry a balloon at maturity, and the release clause is contract language, not a legal right.
Cross-collateralization also thins the wall between LLCs. Corporate Finance Institute’s cross-collateralization overview explains that default on one pledged asset can expose all of them. The LLCs still block outside creditors, but not the blanket lender. A personal guaranty typically stays in place even after a property leaves the lien.
On the other side, separate notes cost more in duplicated fees but keep each LLC independent, and they need no release terms if one property sells soon.
Blanket Versus Separate Loans in Practice
| Situation | Usually fits better |
|---|---|
| Similar rentals held together long term | Blanket |
| One borrowing entity or common ownership | Blanket |
| Several unrelated LLCs | Separate notes or parent structure |
| Plan to sell one door soon | Separate notes |
| Low-balance properties | Separate notes |
| Properties across many counties | Run both side by side |
Most files in the network that move toward a blanket involve seasoned, similar properties and one clear owner. Files that stall usually involve entity cleanup that should have happened first.
Then there are the costs after closing. Adding, substituting or releasing a property can trigger fresh appraisal, legal and title work, and when the property sits in a different LLC, someone has to decide which entity pays.
Questions to Ask Before Choosing
- Which fees are charged on the total balance, and which per property?
- What documents does each LLC need, and does each have to sign?
- Is re-titling required, and what does it cost?
- How is the loan allocated across properties for release?
- What does a release or substitution cost?
- What is the prepayment structure?
The CFPB’s Loan Estimate page explains how origination charges and third-party services are grouped on consumer mortgage estimates. DSCR loans are business-purpose and exempt from TRID, so that form does not govern them, but its fee categories are a useful lens for comparing two quotes line by line. Lendmire’s piece How a DSCR Lender Charges Closing Costs on LLC-Held Portfolios goes deeper on the entity side.
For the full picture of how these loans work, see Lendmire’s complete DSCR loans guide.
If you are buying or refinancing several rental properties 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. Reach the team at 828-256-2183.
Frequently Asked Questions
Does a blanket loan always cost less to close than separate loans?
No. It collapses loan-level fees into one set, but appraisals, title and recording stay per property, and entity documents repeat per LLC. With many doors, many counties or many entities, the gap narrows and can reverse.
Do all my LLCs have to be on the loan?
Generally yes. Each entity that holds title usually joins as a borrower or pledges its property, subject to lender program requirements. Lenders vary on how much entity variation they accept.
Can I pull one property out later?
Only on the terms in the loan documents. A release clause is contract language, the release price runs above the allocated balance, and the remaining properties must still cover the debt service.
Does the origination fee go down on a blanket?
Not necessarily. It is charged once, but on a larger balance, so the dollar amount can exceed what a single-property loan would carry.
Are manufactured homes allowed in the pool?
No.
About Lendmire
A DSCR-focused mortgage broker, Lendmire (NMLS# 2371349) places investor financing across 41 markets — 40 states plus Washington, D.C. — with DSCR eligibility generally reviewed by the lender on property cash flow instead of tax returns, subject to lender guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in 2025 and 2026.
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References
1. Fannie Mae Selling Guide B7-2-01: Provision Title Insurance
2. Cross Collateralization — Corporate Finance Institute
This article is part of Lendmire’s DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Bridge Loan vs DSCR Loan for a Declined Rural Buyer: What Each Needs · DSCR Refinance vs Paydown vs Sale on a Blanket Loan Due in 2 Years · Own Loan vs Portfolio DSCR Loan for Airbnbs in Three or More Markets
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.