Blanket Mortgage Portfolio Loan Calculator
Calculate blanket mortgage payment, partial release fees, and cross-collateralization for a real estate portfolio loan.
| Total portfolio value | — |
| Blanket loan | — |
| Annual debt service | — |
| Avg loan per property | — |
| Partial release fee/property | — |
| Cost to fully release all (e.g. sell all) | — |
Blanket mortgages finance multiple properties under one loan with cross-collateralization. Common for portfolio investors with 5-20 SFR or small multifamily. Simplifies financing but complicates partial sales and refinances.
How Blanket Loans Work
One loan secured by multiple properties. All properties cross-collateralize — default on one triggers default on all. Underwriting based on aggregate cashflow and LTV. Common at portfolio lenders (community banks, regional banks, non-QM specialists).
Partial Release Mechanics
To sell one property, lender executes a partial release of lien. Requires paydown equal to (or greater than) the property's pro-rata share of loan. Plus partial release fee ($1,000-$3,000 typical). Some loans block partial releases entirely.
Pros and Cons
Pro: one set of closing costs vs separate per-property loans, simpler servicing, aggregate cashflow approval. Con: cross-collateral risk, partial release friction, refinance must cover ALL properties simultaneously, harder to dispose of underperforming properties.
DSCR Across Portfolio
Lender underwrites blended DSCR across all properties. One vacancy in a 4-property blanket can be absorbed by other 3. But sustained weakness in any property can trigger default of entire blanket.
Typical Blanket Mortgage Terms in 2026
Blanket loans sit outside agency guidelines, so terms are set lender by lender rather than by a rate sheet. The ranges below are what portfolio lenders, community banks and non-QM specialists commonly quote to a stabilised residential portfolio.
| Term | Typical range | Why it matters |
|---|---|---|
| Loan-to-value | 65-75% of aggregate value | Measured on the portfolio, so a strong property can carry a weak one |
| Minimum DSCR | 1.20x-1.25x blended | Tested on aggregate NOI, and usually re-tested annually |
| Rate premium vs single-asset loan | +100 to +200 bps | The price of one closing instead of five |
| Term and amortisation | 5-10 year term, 20-30 year amortisation, balloon at maturity | You will refinance the whole portfolio at once, on whatever rates exist then |
| Release price | 110-125% of the property's pro-rata loan share | Deleverages the remaining pool on every sale |
| Partial release fee | $1,000-$3,000 per release | On top of the paydown, plus new title work |
| Prepayment penalty | Step-down (5-4-3-2-1) or yield maintenance | Yield maintenance can make an early portfolio exit uneconomic |
| Minimum size | Often 5+ properties and $250,000-$500,000 loan | Below that, separate DSCR loans are usually cheaper |
Credit standards on this kind of lending tighten and loosen faster than agency lending; the Federal Reserve's Senior Loan Officer Opinion Survey is the public read on whether banks are tightening commercial real estate standards in a given quarter, and it is a fair predictor of whether the LTV you were quoted last year is still available.
Partial Release Worked Example: Selling One of Five
An investor holds five single-family rentals worth $1.5 million in total against a $1,050,000 blanket loan — 70% LTV. Property A is worth $300,000 and sells for $320,000.
- Pro-rata loan share: $300,000 ÷ $1,500,000 = 20% of $1,050,000 = $210,000
- Release price at 120%: $252,000 must be paid to the lender, not $210,000
- Sale proceeds: $320,000 less 6% selling costs = $300,800
- Cash to the investor: $300,800 − $252,000 − $2,000 release fee = $46,800
- Portfolio after the sale: $798,000 owed against $1.2 million of remaining value = 66.5% LTV, down from 70%
That last line is the whole point of a release price above 100%: every sale strengthens the lender's position on what remains. It also means the cash you walk away with is materially less than a single-property mortgage would have released — here $46,800 rather than the roughly $89,000 you would net if the property carried only its own $210,000 loan. Before signing, get three things in writing: the release price formula and whether it is fixed or lender-discretionary, whether releases are capped in number or blocked entirely after a certain point, and how the remaining properties are revalued after a release, since a lender-ordered revaluation can reset your LTV covenant in a soft market. Last updated: August 2026.
Last updated August 2026. Sources: Fannie Mae Investor Products.