Cross-Collateral Loans for Investors
A cross-collateral loan ties two or more properties together as collateral for a single financing transaction. The most common use is leveraging equity in an existing rental to cover the down payment on a new acquisition — effectively a 100% financed purchase backed by the combined equity position.
Highlights
- •Use existing rental equity in lieu of down payment cash
- •Effectively finance up to 100% of new purchase
- •Both properties stay tied until you pay down or refinance
- •DSCR underwriting at the combined level
- •Release available once LTV ratios normalize
Who it's for
Investors with significant equity in current rentals who want to scale without disturbing cash reserves, BRRRR investors closing on a new project before the previous refi seasons, and 1031-adjacent buyers bridging timing gaps.
Frequently asked questions
Is cross-collateral the same as a blanket loan?
Related but different. A blanket loan typically refinances multiple properties under one note from day one. Cross-collateral uses equity from one or more existing properties as additional collateral on a new loan, often as a temporary structure.
How is the combined LTV calculated?
(All loan balances against tied properties) divided by (combined as-is value of those properties). Most cross-collateral programs cap combined LTV at 70–75%.
Can I release the cross-collateralized property later?
Yes — once the new loan’s standalone LTV drops below the program threshold (usually 70–75%) through paydown, refinance, or appreciation, the additional collateral can be released.
What rate impact?
Generally 0.125–0.5% above a standard DSCR rate. Some lenders price it the same if combined LTV is conservative.
Got a cross-collateral scenario?
Tell us the deal - we'll match you with the right lender and come back with current pricing.
Common questions on this topic
Can I get DSCR loans on multiple properties?
Yes. DSCR loans have no cap on financed properties, unlike conventional. Many investors hold 10, 20, or 50+ rentals via DSCR.
DSCR loan or HELOC for buying my next investment property?
DSCR loan if buying a new property; HELOC if you have equity in another property and want flexible access. Often combined: HELOC funds the down payment, DSCR finances the new acquisition.
Related programs
Blanket Loans for Real Estate Investors
Blanket loans cover multiple investment properties under a single mortgage. DSCR underwriting at the portfolio level, release clauses, and one closing.
Fix and Flip Loans (Hard Money & Bridge)
Short-term fix and flip loans for real estate investors. Up to 90% of purchase + 100% of rehab. ARV-based underwriting. Fast close.