Blanket Loan

A blanket loan has a couple advantages for investors.  The first advantage is the blanket loan program allows investors to roll several properties into one loan so that they have one mortgage. Many of my investors that managing one mortgage is considerably easier to handle.  Another reason investors like the blanket loan program is that if they own 10+ properties they find the blanket loan has lower rates than hard money.  Typically 10+ financed properties have rates in the double digits. The blanket loan rates typically start around 4.99% to 5.99% depending on the program. Lastly investors consider the blanket loan because many blanket lenders allow you to form an S Corp. for the properties in the blanket loan.  These investors are than allowed to purchase new properties under Fannie Mae and Freddie Mac residential loan program.

The blanket loan has come a long way from prior to 2008.  The blanket loans of the past had to have the properties within a short distance from one another.  Today investors can have properties that are located all over the country. I have several deals in my pipeline right now where I even have an investor that is purchasing a investment property and a refinancing his remaining for cashout all in one loan. The goal for many of these investors have ranged from pulling out cash, to lowering their rate, to purchasing more investment properties, to just wanting to have one mortgage payment.

What are the criteria for a blanket loan?