Residential Investor Lending

DSCR Portfolio (Blanket) Loans

Q: How is DSCR calculated on a portfolio?

Portfolio DSCR = Sum of Annual Net Cash Flow (with vacancy + reserves + management fee) ÷ Sum of Annual Debt Service. Underwriting demands 1.05-1.20x portfolio DSCR (tiered by leverage). Strong-DSCR properties subsidize weaker properties in portfolio underwriting — meaning a 0.95x property + 1.30x property can clear at 1.12x portfolio average.

Q: What's the minimum number of properties?

5+ properties is the typical minimum. Some programs flex to 4-property portfolios with strong sponsor profile. Above 5 is the structural sweet spot for portfolio DSCR underwriting because the diversification + cash flow consolidation benefit shows clearly.

Q: What's the loan size cap?

Up to $2M typical maximum on best-execution single-blanket DSCR portfolio loans. Some programs flex to $5M+ on institutional-tier sponsors. Above $5M, the deal often splits into multiple parallel portfolio loans or routes to small-balance multifamily CMBS.

Q: When should I consolidate vs keep separate loans?

Consolidate when: (1) You have 5+ properties on different rate sheets / different servicers — eliminating operational complexity, (2) You want one closing for all properties at once (acquisition or refinance recap), (3) Strong-DSCR properties can subsidize weaker properties in portfolio underwriting. Keep separate when: (1) Properties are at very different LTVs / rate environments, (2) Different prepay structures you don't want to reset, (3) Strong-DSCR standalone properties price tighter than portfolio.

Q: What's the typical FICO + sponsor profile?

680+ FICO mid-score (typically tighter than 660 single-property DSCR floor). Sponsor profile typically experienced (3+ years operating rentals, 5+ properties already). LLC ownership common; full recourse with personal guarantee from key principals.

Consolidate 5+ rental properties under a single 30-year fixed DSCR portfolio loan. Single closing, single payment, single servicer. Release clauses for future flexibility.

Loan Size

$500K–$5M+

Min Properties

Term

30-yr fixed

DSCR Floor

1.05-1.20x

FICO Floor

680

Quick Answer

What is a DSCR portfolio loan and when should I consolidate?

A DSCR portfolio (blanket) loan consolidates 5+ rental properties under one 30-year fixed mortgage. Portfolio-level underwriting (1.05-1.20x DSCR), 680 FICO, up to $2M typical max ($5M+ on institutional). Single closing, single payment, single servicer. Strong-DSCR properties subsidize weaker properties in the underwriting. Rates ~25-50 bps tighter than single-property DSCR. Release clauses allow individual property sales without unwinding the blanket loan.

— PeerSense Capital Advisory · 2026-05-01

Program details

Loan size	$500,000 – $5,000,000+
Minimum properties	5+ (some programs flex to 4)
Min property value	$100,000 individual property
Term	30-year fixed (also 5/6, 7/6, 10/6 hybrid ARMs)
Rate	6.50-8.50% (May 2026 indicative)
Min DSCR	1.05x for ≤$2M and ≤10 properties; 1.20x for larger
Max LTV (rate-and-term)	80%
Max LTV (cash-out)	75%
Min FICO	680 mid-score
Min occupancy	90% by unit count
Property types	1-unit SFR, 2-4 unit, townhomes, PUD, warrantable condos
Recourse	Full recourse + personal guarantee
Release clauses	Yes — individual property release at 110-115% pro-rata payoff
Close timeline	35-50 days from complete file

Frequently asked questions

What is a DSCR portfolio loan?+

A DSCR portfolio (or blanket) loan consolidates 5+ rental properties under a single mortgage, single payment, and single servicer. Underwriting is portfolio-level.

How is DSCR calculated on a portfolio?+

Portfolio DSCR = Sum of Annual NOI ÷ Sum of Annual Debt Service. 1.05-1.20x portfolio DSCR (tiered by leverage). Strong-DSCR properties subsidize weaker properties.

What's the minimum number of properties?+

5+ properties typical minimum. Some programs flex to 4 with strong sponsor.

What's the loan size cap?+

Up to $2M typical maximum on best-execution. Some programs flex to $5M+ on institutional-tier sponsors.

What's a release clause?+

Release clauses allow the borrower to remove individual properties from the portfolio by paying a release fee (110-115% of pro-rata loan portion) + meeting collateral coverage tests. Critical for portfolio flexibility.

What's the rate vs single-property DSCR?+

Portfolio DSCR rates typically run 25-50 bps tighter than single-property DSCR for the same average quality + sponsor. May 2026: portfolio 6.50-8.50% vs single-property 6.75-8.75%.

When should I consolidate vs keep separate loans?+

Consolidate when 5+ properties on different rate sheets/servicers, want one closing, strong-DSCR properties can subsidize weaker. Keep separate when very different LTVs/rate environments, different prepay structures, or strong-DSCR standalones.

What's the typical FICO + sponsor profile?+

680+ FICO mid-score. Experienced (3+ years operating rentals, 5+ properties). LLC common; full recourse with personal guarantee from key principals.