Tuesday, March 13, 2012 - Article by: LouisJ - Louis Jeffries -
The Blanket Loan is not a new program, but many non conforming financing options went away during the mortgage crisis. So this program is back again. For commercial and residential property real estate investors you can now combine multiple properties into one loan. The program requires a minimum loan amount of $250,000 and a maximum loan to value of 75%. This means the minimum property values should be at least $335,000.00. Additional requirements are for you to only have like properties in the same area in one loan. For example, you can add multifamily properties into one loan or single family homes into one loan , or industrial properties into one loan, or retail strip properties, etc.
Many commercial mortgage lenders have a minimum loan size. This way you can add multiple properties with low values and get a commercial loan. You can also combine properties together in one loan to get cash out for any purpose. Another option the blanket loan offers is for commercial property owners to use their existing properties with adequate equity as collateral necessary for the down payment to purchase additional properties. Another excellent feature is there is no seasoning of ownership in this blanket loan program. That allows investors to buy property below market and refinance them based on current market value.
This is a great program for residential investors with many properties. Conventional lenders have a maximum of 3 to 4 properties for residential real estate investors for them to qualify to finance additional properties. This is a private portfolio loan and there is no maximum number of properties requirement. So residential investors can blanket multiple properties together and purchase additional properties without limit. The sale loan size requirements are in place for residential and commercial properties.
This program is available anywhere in the country for commercial and residential investors. Rates change regularly like all mortgage programs.
Didn't find the answer you wanted? Ask one of your own.