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Blanket · McAllen, TX

Blanket Portfolio Loans for McAllen and Rio Grande Valley Rentals

Rio Grande Valley investors often own a mix that is hard to finance one property at a time: a couple of newer fourplexes in Edinburg or McAllen, a duplex in Mission, and several modestly priced single-family homes in Pharr, Weslaco or San Juan, some of them too small for a standalone loan.

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In short: LendingStreet's blanket portfolio loans let McAllen-area investors combine 5 or more rentals, each with 1 to 8 units, under one loan with one closing and one payment. The loan qualifies on the portfolio's combined cash flow, with portfolio pricing and release provisions for selling individual properties. For Valley investors, a blanket also solves a practical problem: homes that would fall under our $150,000 minimum on their own can be financed together.

What Valley portfolios look like

The Rio Grande Valley has built a lot of small multifamily in the last two decades. Fourplexes and duplexes are common in Edinburg near UTRGV, in McAllen neighborhoods north and south of Expressway 83, and in Mission and Pharr. Many are brick or stucco buildings with separate meters, built for long-term rental.

Alongside them, investors hold single-family homes across McAllen, Edinburg, Mission, Pharr, San Juan, Alamo, Weslaco and Mercedes, often bought at prices well below the Texas big-metro average. Tenants include families, hospital and school district employees, UTRGV students and staff, and workers tied to cross-border trade and logistics.

The minimum loan problem, solved

Our loans start at $150,000. A $210,000 Weslaco house at 70% LTV is a $147,000 loan, just under the minimum, and a $180,000 house is well under it. Many Valley investors have several homes in that price range. A blanket combines them with larger properties into one loan that clears the minimum easily.

It also replaces a stack of small loans, each with its own payment date, insurance requirements and maturity, with one.

How portfolio DSCR works

A blanket loan compares total rent for every property against the total monthly payment, including principal, interest, property taxes and insurance. Fourplexes in the Valley often have strong rent relative to price, while some single-family homes run tighter because Texas property taxes are high. In a blanket, the strong properties can carry the weaker ones as long as the portfolio clears the minimum.

Lenders still review each property's condition, leases and market rent. A vacant or rundown home will not become acceptable because it sits in a blanket, but a well-run home with thin cash flow can.

Think about the mix you add over time, too. A portfolio built mostly from single-family homes in high-tax school districts will have less cushion than one anchored by a few fourplexes, so leave room above 1.0x if you plan to add properties.

Worked example: six Valley rentals

This example is illustrative and not a quote. An investor refinances six rentals worth $1,975,000 combined, with total rent of $16,700 a month. Property taxes, at the full rate with no homestead exemption, are about $3,950 a month, and insurance is about $1,080.

At 70% of combined value, the blanket loan is $1,382,500. Estimated principal and interest is about $9,667, for a total monthly payment of about $14,697. Portfolio DSCR is about 1.14x.

The Weslaco and Pharr homes would each fall near or below the minimum loan size on their own. Inside the blanket, they are simply part of the portfolio.

PropertyValueMonthly rentMonthly taxes
Edinburg fourplex$500,000$4,500$1,000
McAllen fourplex$480,000$4,300$960
Mission duplex$290,000$2,500$580
North McAllen single-family$270,000$2,000$540
Pharr single-family$225,000$1,750$450
Weslaco single-family$210,000$1,650$420
Total$1,975,000$16,700$3,950

Property taxes across Hidalgo County

Each property's tax bill depends on its mix of taxing units: Hidalgo County, the city, the school district (McAllen, Edinburg, Sharyland, PSJA or another), South Texas College, drainage and other districts. Rates differ meaningfully from one city to the next, so two similar homes can carry different bills.

The Hidalgo County Appraisal District reappraises regularly, and rising values can lift taxes even when the rate holds steady. Use current bills for every property and check whether values have been protested or are under review.

Releasing a property when you sell

Release provisions let you sell one property out of the blanket without refinancing the rest. The loan documents set how much of the sale goes to pay down the balance, and the remaining portfolio must support what is left. Release terms vary by program.

Texas does not charge a state real estate transfer tax, which keeps the cost of selling one property lower than in many states, though title and closing costs still apply.

Plan releases with the whole portfolio in mind. Selling a fourplex removes a strong earner, and the release amount in the documents may leave the remaining homes with a tighter ratio. Selling a weaker single-family home usually improves it.

Insurance and weather

Valley insurance pricing reflects wind, hail and heavy rain risk from Gulf storms. Some streets in McAllen, Pharr and Edinburg sit in mapped flood zones or have a history of flooding. Insurance for each property is part of the payment, so get current declarations or quotes before you apply. A blanket can cover properties across Hidalgo and Cameron counties, and properties in more than one state on some programs.

Requirements and next step

Each property must be a 1 to 8 unit investment property. The minimum credit score is 620, LLC borrowers are standard and no W-2s or tax returns are required.

Talk to us

Send your property schedule through the form below or call (877) 298-1001. We will calculate portfolio DSCR and show how a blanket compares with your current loans. Include the appraisal district account number for each property so we can check every taxing unit.

Common questions

How many properties do I need for a blanket loan?

Five or more investment properties, each with 1 to 8 units.

Can I include homes that are too small for their own loan?

Yes. That is one of the main reasons Valley investors use blankets. The blanket as a whole must meet the $150,000 minimum.

Can I combine McAllen, Edinburg and Brownsville rentals?

Yes. Properties across Hidalgo and Cameron counties can go under one loan.

How is portfolio DSCR calculated?

Total monthly rent divided by the total monthly payment, including principal, interest, taxes and insurance for every property.

What happens if I sell one property?

The release provisions set how much of the sale pays down the loan. The rest stays in place.

Do Texas property taxes hurt the ratio?

They can. Budget each property at the full combined rate with no homestead exemption.

Do I need tax returns?

No. The loan qualifies on the portfolio's cash flow.

Do you finance my own home in the blanket?

No. Our investor loans are business-purpose loans on non-owner-occupied property.

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