The Quick Read: A blanket DSCR loan sizes three different rentals by crediting rent on each property, adding it up, and testing the total against the debt service on one note. Each property still gets its own appraisal, title work and rent evidence, but the coverage test and the leverage test run on the pool. Mixed types in one LLC are allowed on the 30-year portfolio structure, subject to lender guidelines.
- A single-family rental, a 2-4 unit property and a condo or townhome can sit under one note on the 30-year portfolio DSCR loan.
- The coverage floor is 1.00, measured on the pool, so stronger properties can offset weaker ones.
- Leverage on purchase and rate-and-term runs up to 80% of value; cash-out never exceeds 75% of pooled value.
- Whichever test is tighter, coverage or leverage, sets the maximum loan.
- The release price on any one property runs above its allocated balance, so read those terms before signing.
A common question for an owner of three rentals is whether one loan can cover a house, a fourplex and a condo. Usually yes. The harder question is how the lender builds the number.
What Is a Blanket DSCR Loan?
A blanket DSCR loan is one note secured by liens on several rental properties, underwritten on the combined rent. Here, “portfolio DSCR loan,” “blanket loan” and “cross-collateralized loan” all mean the same thing: one note, every property pledged.
Two ideas are packed into the name. “Blanket” describes the collateral: one debt, a lien on each parcel. “DSCR” describes the underwriting: the properties’ rent is tested against the payment, not the borrower’s personal income. 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.
One word of caution on terms. A bank’s “portfolio loan” is a loan the bank keeps on its own books. That is a different sense of the word, and it may be a separate loan on each property. Confirm in writing whether you are getting one note with a lien on every property, or separate liens.
For the full background on how these loans work, see the complete DSCR loans guide.
What Does “Sized” Mean on a Blanket Loan?
Sizing is four steps, not one number. The lender sets the loan amount, allocates it across properties, runs the coverage test, and reviews each property on its own.
- Loan amount: the lower of what coverage supports and what leverage allows.
- Allocation: how much of the balance is attributed to each property.
- Coverage test: pooled rent divided by pooled monthly obligations.
- Property review: appraisal, title, rent evidence and condition, one parcel at a time.
Across the wholesale network, the 30-year portfolio DSCR loan covers 2 to 20 properties under one note. Loan size runs from $300,000 to $5,000,000, with larger balances on review. Those are program ceilings and floors, not quotes, and they are subject to lender guidelines.
How Is Each Property Type Treated in the Pool?
Each type feeds value and rent into the pool differently, and each has its own way to trip a file. The table below shows what the lender reviews on a single-family rental, a 2-4 unit property and a condo or townhome.
| Factor | Single-family | 2-4 unit | Condo/townhome |
|---|---|---|---|
| Value support | Standard appraisal | Small-income appraisal | Condo appraisal |
| Rent evidence | Lease or market rent | Rent unit by unit | Lease or market rent |
| Added cost | Taxes, insurance | Taxes, insurance | Plus HOA dues |
| Common snag | Thin comps | A vacant unit | HOA questionnaire gaps |
Single-family. The appraiser reports value and gives a market-rent opinion. For one-unit investment properties, the Fannie Mae Selling Guide describes Form 1004 for the appraisal and Form 1007 as the single-family comparable rent schedule. DSCR loans are not agency products. The forms are simply the common language appraisers use.
2-4 unit. A vacant unit shows up here, because the lender wants a lease or an appraiser-supported market rent on every unit.
Condo or townhome. Rent works like the single-family case, but the monthly obligations include HOA dues. The file also needs the HOA questionnaire and condo certification where the project requires them. Incomplete questionnaires are a common source of delay on condo files, so don’t assume the HOA will answer promptly.
One more point on type. Five or more units is not part of the 30-year portfolio structure. Small multifamily of five or more units is eligible only inside the rental portfolio term loan, covered below. Manufactured and mobile homes are not reviewable on any of these programs.
How Does the Pooled Coverage Math Work?
Pooled coverage is total credited rent across all three properties divided by the total monthly obligations on the one note. Those obligations are principal and interest, taxes, insurance, and any HOA dues. The floor on the 30-year portfolio structure is 1.00, measured on the pool.
Run the logic with ratios, not payments. Picture three properties with these standalone coverage reads:
- The single-family home covers its share at roughly 1.25x.
- The fourplex covers at roughly 1.10x.
- The condo covers at roughly 0.90x, because HOA dues eat into rent.
Each property’s rent is compared to its own share of the obligations. Because the stronger properties offset the weaker one, the blended read depends on how large each property’s share of the debt is, and the pooled number is the one that counts. The condo sits under 1.00 on its own, yet it can sit in the pool because the coverage test runs on the pooled rent against the pooled debt service. That is a pooled-coverage fact, not a separate low-coverage program. The pooled number still has to clear 1.00.
Two cautions. First, the rent each property contributes is typically the lower of the in-place lease or the appraiser’s market rent. A lease above market does not carry the extra. Second, clearing 1.00 does not mean positive cash flow. DSCR compares rent to PITIA only. Repairs, vacancy, management, utilities and capex sit outside the calculation.
Now flip the scenario. Say the fourplex loses a tenant and the appraiser’s market rent on that unit drops. Pooled coverage falls, and because it is one blended number, every property feels it. A vacancy matters more here than on a standalone loan.
Pool-Level Tests vs Property-Level Tests
The coverage test runs on the pool, but each property still has to qualify as collateral. Strong rent does not fix a property that fails on condition, eligibility or documentation.
| Test | Measured on | What it checks |
|---|---|---|
| Coverage | The pool | Total rent vs total obligations |
| Leverage | Pooled value | Loan vs combined appraised value |
| Rent evidence | Each property | Lease or supported market rent |
| Eligibility | Each property | Type, occupancy, condition |
Every property still needs a lease or an appraiser-supported market rent. Owner-occupied property, co-ops, mixed-use property and commercial property are ineligible in the pool. A single ineligible property can force a restructure of the whole request.
How Is the Loan Amount Allocated, and Why Does It Matter?
The note should state the balance attributed to each property. That allocation matters most when one property is sold or refinanced later, because the lender uses it to set the release price.
Partial releases, substitutions and the sale of one property out of the pool follow the loan documents and the lender’s release terms. The release price runs above the property’s allocated balance. The remaining pool must still cover its debt service after the property leaves. If you sell the strongest-covering property, the pool left behind can fall under 1.00, and the lender may require more paydown or decline the release.
That is why exit planning matters more than the initial quote. Fix the allocation and release terms in the documents before closing, not after.
What Does the Leverage Test Add?
Leverage runs on the combined appraised value. On the 30-year portfolio DSCR loan, leverage tops out at 80% of value on a purchase or rate-and-term refinance. On a cash-out refinance, it never exceeds 75% of pooled value.
Seasoning adds a second cap on the loan amount. Inside the first six months of ownership, the loan is also capped at 90% of total cost (purchase price plus documented improvements). From six to twelve months, the cap is 100% of total cost. The leverage ceiling still applies, and the loan is the lower of the two. After twelve months, appraised value alone is the basis. A rate-and-term refinance is not subject to the cost-basis cap.
So the tighter test wins. A pool with strong rent can still hit the leverage ceiling. A pool with strong equity can still be limited by weak coverage. A larger down payment lowers the monthly obligation and can lift the coverage ratio, but it never erases leverage caps, credit floors, reserve rules or property eligibility.
Holding All Three Properties in One LLC
One LLC can hold all three properties, and a special-purpose entity (typically an LLC) is required on some structures, subject to program terms. The LLC is the borrower and holds title to each parcel.
Mechanically, that means:
- Entity documents: operating agreement, formation papers and good-standing evidence for the LLC.
- Title and vesting: each property is vested in the LLC, with its own recorded security instrument securing the one note.
- Insurance: each property carries its own policy naming the LLC, and quotes should be complete before the file goes in.
- Guarantee: recourse loans carry a personal guarantee. Non-recourse structures exist on the term loan, with recourse limited to carve-outs such as fraud and bankruptcy.
One LLC also means one liability bucket. A default is not isolated to one property. Some investors prefer separate entities for different groups of rentals, which usually points back to separate loans.
When Does the Rental Portfolio Term Loan Fit Instead?
The rental portfolio term loan is for five or more rental properties or units under one loan, and it is the only structure where small multifamily of five or more units is eligible. Loan size runs from $500,000 to $50,000,000, with larger balances on review, and leverage goes up to 75% of value.
Terms are fixed-rate at 3, 5, 7 or 10 years with a balloon at maturity. Properties in several markets may sit under one loan. Prepayment is yield maintenance, and reserves are held for taxes, insurance and capital expenditures. The credit floor is 640, and 680 or 720 on some portfolio structures.
For three properties of the types discussed here, the 30-year portfolio DSCR loan is the usual fit. The term loan comes into play if one of the three is a five-plus-unit building, or the pool grows.
Blanket Loan or Three Separate Loans?
A blanket suits properties bought together or already pooled. Separate loans suit properties you expect to sell on different timelines.
| Factor | Blanket | Three separate loans |
|---|---|---|
| Qualification | Pooled coverage | Each property alone |
| Weak property | Can ride on strong ones | Tested alone |
| Selling one | Release terms apply | Independent sale |
| Default risk | Reaches all properties | Isolated |
| Paperwork | One closing, one servicer | Three of each |
The savings are real but smaller than most people expect. Third-party fees are shared, but appraisals, title work and entity documents still run property by property. If you plan to sell one of the three within a few years, the release terms deserve more weight than the convenience of one payment.
Key Terms Defined
- Blanket loan: one note secured by liens on several properties.
- Cross-collateralization: every property secures the whole debt, not just its own share.
- Pooled coverage: combined credited rent divided by combined monthly obligations.
- Allocated balance: the part of the loan attributed to one property.
- Release price: the paydown required to free one property from the lien; it runs above the allocated balance.
- PITIA: principal, interest, taxes, insurance and HOA dues, the payment side of the coverage ratio.
Steps and Questions to Ask
1. Decide the structure. Three properties of 1-4 units point to the 30-year portfolio DSCR loan; five or more units points to the term loan.
2. Gather entity documents. Pull the LLC’s operating agreement, formation papers and good-standing evidence, and confirm title is vested in the LLC.
3. Document rent on each property. Collect leases, or plan for appraiser-supported market rent where a unit is vacant.
4. Collect insurance quotes and HOA materials. Complete quotes and the condo questionnaire leave the lender fewer gaps to chase.
5. Document reserves. Reserves commonly run around 6 months of PITIA and about 9 months above $1,500,000, varying by lender, leverage and transaction type.
6. Read the release terms before signing. Confirm the allocated balance per property and what the lender requires to release one.
Questions worth asking any loan officer: Is this one note with a lien on every property? What is the allocated balance on each? What does the pool look like after I sell the strongest property? Does any property need to clear coverage alone?
Lendmire arranges these loans as a broker through select lenders in its wholesale network. A non-QM investor platform covering 40 states and Washington, D.C., it can help compare structures based on property income, credit profile and leverage. If you are buying or refinancing rentals and want to see how the numbers work, that comparison is the place to start. Everything here is subject to lender guidelines and is not a commitment to lend.
This article is general information, not legal or tax advice. Tax treatment varies; consult a qualified attorney or CPA about your own situation.
Frequently Asked Questions
Can I mix a single-family home, a duplex and a condo in one blanket loan?
Yes, on the 30-year portfolio DSCR loan. Single-family, 2-4 unit, condo and townhome properties are all eligible, and the pool is tested as a whole. Each property still gets its own appraisal, title work and rent evidence.
Does one weak property sink the whole loan?
Not necessarily. Pooled coverage lets stronger properties offset a weaker one, as long as the pool clears 1.00. But a vacancy or high HOA dues lowers the blended number for every property, so one weak door has a larger effect than on a standalone loan.
What happens if I sell one of the three properties?
It follows the loan documents and release terms. The release price runs above the property’s allocated balance, and the remaining pool must still cover its debt service. Without a workable release provision, a sale may require refinancing the whole pool.
How many properties do I need for a blanket loan?
The 30-year portfolio DSCR loan covers 2 to 20 properties under one note. The rental portfolio term loan is built for five or more rental properties or units. Subject to lender guidelines.
Can I refinance my existing loans into a blanket?
Yes. A rate-and-term refinance can go up to 80% of pooled value, and the cost-basis cap does not apply to it. A cash-out refinance never exceeds 75% of pooled value, and inside the first six months of ownership a cash-out loan is also capped at 90% of total cost, so the loan is the lower of the two. Subject to lender guidelines.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage brokerage specializing in DSCR investor loans, helping arrange financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. The model centers on property-level rental income reviewed by the lender rather than W-2 documentation, subject to lender guidelines, suiting entity-owned and multi-property investors. Lendmire holds Scotsman Guide Top Mortgage Workplace recognition for 2025 and 2026.
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References
This article is part of Lendmire’s DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Will a DSCR Cash-Out Work on a Rental Held as Heirs’ Property? · Best Portfolio DSCR Cash-Out Refinance Program to Tap Rental Property Equity · How Much DSCR Cash-Out Releases on a Rented Rehab
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.