Lancaster portfolios tend to be built one rowhome at a time. A landlord buys a brick house on Cabbage Hill, then a twin in Columbia, then a converted duplex in Ephrata, and ten years later has seven loans with seven servicers. A blanket loan turns that into one loan, one payment and one maturity date.
In short: LendingStreet offers blanket portfolio loans that put five or more Lancaster-area investment properties, each with 1 to 8 units, under one loan qualified on the portfolio's combined cash flow. You get one closing, one monthly payment, portfolio pricing and release provisions for selling a single property later. No W-2s or tax returns are needed, and properties elsewhere in Pennsylvania, or in other states on some programs, can be included.
Inside the city, investors buy 19th-century brick rowhomes and twins in the southeast and southwest neighborhoods, including Cabbage Hill, and in the West End and Northeast. Units near Franklin and Marshall College and the hospital rent to staff and graduate students. Many larger city homes were split into two or three apartments decades ago.
Outside the city, the boroughs carry much of the rental stock: Columbia's river-town rowhomes, Ephrata and Lititz twins, Elizabethtown and Mount Joy homes near the Amtrak line, and Millersville houses near the university. Suburban townships such as Manheim Township and Lancaster Township add single-family rentals at higher prices.
| Area | Typical rental | What to check |
|---|---|---|
| Lancaster city southeast and southwest | Brick rowhomes, converted 2-3 unit homes | City rental license and inspection, legal unit count |
| Lancaster city West End and Northeast | Larger rowhomes and twins | Older systems, lead-based paint disclosure |
| Columbia | Lower-priced river-town rowhomes | Condition, flood zone near the Susquehanna |
| Ephrata, Lititz, Mount Joy | Twins and small duplexes | Borough rental registration and zoning |
| Millersville and Elizabethtown | Homes near colleges and the train line | Occupancy limits for unrelated tenants |
A blanket loan compares the combined rent of every property with one combined payment: principal and interest plus every property's taxes and insurance. A rowhome between tenants or with a high school tax bill can be carried by stronger properties, as long as the whole group clears the program minimum.
This matters in Lancaster County because school district millage varies widely. A rental in one district can carry a much larger tax bill than a similar home in the next district over.
This example is illustrative and not a quote. An investor owns four city rowhomes, two Columbia rowhomes and an Ephrata duplex, seven properties with eight units. Combined value is $1,480,000 and combined rent is $11,650 a month. Taxes total about $2,310 a month and insurance about $770.
At 70% of combined value the blanket loan is $1,036,000. Estimated principal and interest is about $7,244, so the total payment is about $10,324 and portfolio DSCR is about 1.13x. Several small loans, some below what a lender would write individually, become one loan above the $150,000 minimum.
| Item | Amount |
|---|---|
| Properties | 7 (8 units) |
| Combined value | $1,480,000 |
| Blanket loan at 70% | $1,036,000 |
| Estimated principal and interest | $7,244 |
| Taxes, all properties | $2,310 |
| Insurance, all properties | $770 |
| Total monthly payment | $10,324 |
| Combined monthly rent | $11,650 |
| Portfolio DSCR | About 1.13x |
Many Lancaster County rowhomes, especially in Columbia and parts of the city, are worth less than it takes to support a $150,000 loan on their own. A blanket loan solves that by combining them. It is one of the main reasons local investors with several lower-priced homes look at portfolio financing instead of refinancing house by house.
Each property in a blanket loan gets an allocated share of the balance. To sell one, you pay a release amount set in the loan documents, often somewhat above the allocated balance so the remaining portfolio stays strong. Terms vary by program. See /blanket-loan-release-clause.html for examples.
Pennsylvania realty transfer tax, typically about 2% combined state and local and often split between buyer and seller by custom, applies when you sell a property out of the portfolio. Confirm the local rate for the municipality.
Rentals in the City of Lancaster are subject to licensing and periodic inspection, and some boroughs run their own rental registration programs. Keep inspection records current, because an unresolved violation can slow a refinance.
Most of the city's stock was built before 1978, so federal lead-based paint disclosure rules apply. Older slate roofs, stone foundations and outdated wiring are common items in appraisal and insurance reviews.
Lancaster landlords who bought rowhomes ten or twenty years ago often hold most of their equity in properties with small or paid-off mortgages. A blanket cash-out refinance can draw on all of them at once, subject to program leverage limits and seasoning rules, and fund repairs, the next acquisition or a buyout of a partner.
If some properties are free and clear, they still count toward the portfolio's value and rent. See /dscr-cash-out-refinance-seasoning.html for how recent purchases are treated.
Separate DSCR loans keep each property independent, which can make sense if you plan to sell several soon. A blanket loan suits investors who want one payment, portfolio pricing and the ability to pull equity from the whole group at once. Compare the two at /blanket-loan-vs-individual-dscr-loans.html. Investors who expect to keep their Lancaster rowhomes for years usually find one loan easier to manage.
Our investor loans are business-purpose loans on non-owner-occupied property. Send a schedule with address, units, rent, value, loan balance, taxes and insurance for each property through the form below, or call (877) 298-1001. We will run the portfolio DSCR and show options next to our Pennsylvania blanket programs.
Five or more investment properties, each with 1 to 8 units. Rowhomes, twins, duplexes and small buildings can be mixed.
Yes. The $150,000 minimum applies to the loan, not to each property, so lower-priced rowhomes in Columbia or the city can be combined in one blanket loan as long as the portfolio cash flow supports the payment.
Yes. Current licenses and clean inspection records support the file, and open violations can slow closing or require repairs before funding. Gather the license for every city unit before you apply.
Often, yes. Many Lancaster landlords hold properties in two or three LLCs. Send the ownership structure and we will review how the loan can be set up across the entities.
The whole portfolio is tested together, so one vacancy can be carried if combined rent still clears the minimum. Vacant units are usually counted at market rent from the appraisal, though programs differ.
Pay the release amount set in your loan documents, and the lien on that property is removed while the rest of the loan stays in place. Terms vary by program.
Yes, a blanket cash-out refinance can draw equity from all properties, subject to leverage limits and seasoning.
No. The loan is qualified on the portfolio's rent, not your personal income, and LLC borrowers are standard. The minimum credit score is 620.
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