Blanket Portfolio Loans

Equity Development offers Blanket Portfolio Loans. The Blanket loan is also known as a cross collateralized loan. The Blanket Portfolio Loans are for borrowers that have a large portfolio of properties and would like to put them all under one large loan at a very low rate. The loan packaging doe not require tax returns. Our Blanket loans can have a property mix anywhere in the United States.

For the last few years it’s been very difficult to finance a portfolio of residential investment property. Banks are very reluctant to fund an investor who has more than four mortgages. This program solves that challenge, allows you to utilize a blanket loan to pull cash out of your equity, consolidate payments and lower your rates to hold rental property for better cash flow.

A blanket loan means one loan that “wraps” many individual loans into one loan. If you have 25 LLC loans, you make 25 checks out each month, pay 25 tax bills and pay 25 insurance bills. Plus you have 25 different rates. And if they are adjustable rates, good luck trying to keep up with when they need to be refinanced.

A blanket loan will take all 25 of those loans to make one big loan requiring one payment each month at one rate. This is a cool strategy for people that are buying or refinancing in bulk since its one loan that goes through underwriting; not 25.

One thing to watch out for on these loans is the release policy which is what happens when you want to sell or refinance one property that is in the blanket. Some lenders will allow it with a fee, some won’t allow it at all and will call the whole blanket loan due and others will require a substitution of collateral. That means you’ll have to put another property of equal or greater value in the blanket to take the place of the property you’re taking out.

To find out more see our “Hot Loan Products” for rates and guidelines.