What Is a Blanket Loan?
A blanket loan finances multiple properties under one loan and one payment. Learn how blanket (portfolio) loans work and when they make sense.
A blanket loan (also called a portfolio loan) finances multiple properties under a single loan with one payment, instead of a separate mortgage on each. It is how investors with several rentals simplify their financing and free up capital.
How does a blanket loan work?
The lender combines several properties into one loan secured by all of them. You make one payment and manage one loan instead of many. Many blanket loans include a release clause, letting you sell an individual property and pay down a portion without unwinding the whole loan.
Why investors use them
- Simplicity — one loan, one payment, one renewal instead of a stack of mortgages.
- Capital efficiency — consolidating can free equity to keep buying.
- Scale — it is built for investors growing past a handful of doors.
When it makes sense
A blanket loan fits once you hold several stabilized rentals and want to streamline. If you are still acquiring one property at a time, individual DSCR loans may be the better tool until you have enough to consolidate.
Frequently asked
How many properties do I need for a blanket loan?
Can I sell one property without unwinding the whole loan?
Does a blanket loan need a credit score, or does it qualify on the properties?
What is a blanket loan in real estate?
What is a release clause on a blanket loan?
Is a blanket loan the same as a portfolio loan?
Rates, leverage, and timelines mentioned in this guide are typical figures, subject to underwriting and market conditions. Not a commitment to lend. Nothing here is legal, tax, or investment advice.
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