Rental Portfolio: one loan across many doors

If you own several rentals, you may be carrying a separate loan on each one. Rental Portfolio is built for the other approach: one loan across many doors.

The published terms

• 2 to 10 properties per loan
• 30-year term
• Up to 80% LTV on a purchase and 75% on a cash-out
• 1.05x minimum DSCR

What the desk looks at on a portfolio

Because the loan covers several properties at once, the requirements look at the portfolio as well as each property. Three things are called out:

• Occupancy. At least 90% of the portfolio must be occupied, measured by unit count.
• Property size. A minimum of $50,000 per property.
• Lower-value properties. Leverage drops to 70% where 25% or more of the properties are valued under $100,000.

Reading the numbers together

LTV shows how much of the portfolio's value the loan can cover. DSCR shows whether the portfolio's income can carry it. Both tests have to be met. A portfolio with several lower-value properties may find that the lower leverage limit sets the loan size, even when the income looks strong.

Is it a fit?

It tends to suit an investor who already holds several rentals that are leased and operating, and who wants them under a single loan. If some properties are vacant or fall below the $50,000 minimum, send the details anyway and the desk will tell you plainly where it stands.

What to send

For a portfolio scenario, list each property with its address, value and rent, along with your track record.

Program figures are indicative only and subject to complete documentation, underwriting, appraisal and final credit approval. This post is general information, not financial or legal advice.