People usually take advantage of a blanket loan to buy more than one piece of real estate property. This type of loan is popular among builders and developers subdividing large tracts of land or building master developments. Commercial Mortgage Depot (CMD) is a great place to start if you want to finance multiple properties and invest in the housing market in New York, New Jersey, Connecticut, and Pennsylvania. Our team in Clifton, NJ is here to help!

Maximizing the Benefits of Blanket Loans

One clear benefit from using a blanket loan is that it eliminates the need to use and apply for a new mortgage each time you work with a piece of your property. In addition, your buyers can do partial payments of a portion of the mortgage once you have “released” the property to them in your sale. This can help you sell homes you may develop in bulk quickly and smoothly when complete construction and new homes are ready.

Terms for Blanket Loans

Commercial Mortgage Depot helps fund blanket loans for borrowers. We can fund you for anywhere from five to fifty properties! Below are some of the general terms in our blanket loans, but you can always contact our Clifton, NJ office for more details.

  • Loans are available from $500,000 to $50,000,000.
  • Rates are usually fixed and highly competitive.
  • Terms are typically offered at five to ten years, with 30-year amortization.
  • Properties that can be funded include one to four unit family homes, condos, townhomes, or multi-family apartment complexes.
  • Loan to Values of up to 75%.
  • Reasonable third-party processing and underwriting fees, no up-front fees.
  • Loans are available in most markets.

Use a Blanket Loan to Help Grow Your Investment Portfolio

Many real estate investors will do the equivalent of five to ten or even more mortgages in a short period of time. Using a blanket loan helps you obtain your investment portfolio of properties faster by cutting down on the review time for each new loan. Your rental income must be steady for this type of loan, although some allow up to a 20% vacancy factor. Usually, you want vacancy under five to ten percent. You will need to provide a detailed rent roll to apply. However, imagine the ease of providing one payment on one loan instead of multiple!

Some people even use blanket loans to refinance properties. You can consolidate your investments and tap more equity quickly this way. A new loan value and percentage will be assigned to each of your properties in this scenario.

Commercial Mortgage Depot is here to help you review blanket loans and other types of financing in New York, New Jersey, Connecticut, and Pennsylvania. Contact our Clifton, NJ team today for more advice and some great deals in the area!

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