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By David Ghazaryan, Mortgage Broker (NMLS 1486726), iQRATE Mortgages (NMLS 1862492). Updated November 12, 2026.
Short answer: a portfolio loan is investor financing that does not follow Fannie Mae and Freddie Mac rules, so the lender sets its own terms for rental properties. For Merced-area rental buyers, iQRATE Mortgages is a mortgage broker: we shop investor programs for you, we do not fund loans ourselves, and approval and terms depend on the lender. Business-purpose loans for non-owner-occupied investment property only. Start on the application page or call (702) 766-3744. This is information, not a commitment to lend.
Standard agency loans follow a fixed rulebook. A portfolio loan is written by a lender that keeps the loan or sets its own guidelines, so it can look at a rental deal differently. In practice, "portfolio" covers several investor structures, and the label alone does not tell you which one you are getting. Ask which of these a lender is actually offering:
Our general program guide is on the portfolio loans page, and the multi-property playbook is on the serial investor loans page. This page covers what is specific to buying and holding rentals around Merced.
The figures below come from the U.S. Census Bureau QuickFacts page for Merced city (population estimate for July 1, 2025; housing and income figures are 2020-2024 five-year estimates). They describe the city overall. They are not a forecast, a value for any one property, or a statement about what a lender will offer.
| Census measure (Merced city) | Figure | What it means for a rental buyer |
|---|---|---|
| Population, July 1, 2025 estimate | 99,724 | The city's resident count in the latest Census estimate. |
| Change from April 2020 estimates base | 11.0% | Population has grown since 2020, which is one input to rental demand. |
| Owner-occupied housing unit rate | 45.9% | The share of occupied homes lived in by their owners. The remainder (100% minus 45.9%) are occupied by renters. |
| Population, Census April 1, 2020 / April 1, 2010 | 86,333 / 78,958 | Two earlier Census counts for the same city, useful for the longer trend. |
| Living in the same house 1 year ago | 87.0% | Share of residents age 1 and over who did not move in the past year. |
| Median owner costs without a mortgage | $622 per month | Carrying cost for owners with no loan, for comparison with owners who have one. |
| Households | 27,950 | The count of occupied homes in the city, owners and renters together. |
| Persons per household | 3.25 | The Census average household size for the city. |
| Median value of owner-occupied homes | $372,600 | A reference point for entry price. Check actual comparable sales for each property. |
| Median gross rent | $1,393 | A reference point for rent. A lender uses the appraisal's market rent or your lease, not this number. |
| Median owner costs with a mortgage | $1,895 per month | Shows what owners already carry, which is useful when you compare rent against ownership costs. |
| Median household income | $63,122 | The Census median for the city's households, shown for reference only. |
One practical point follows from these numbers. When median owner costs for people with a mortgage sit above median gross rent, a rental has to prove itself on its own numbers. Rent-based programs such as DSCR test the property's documented rent against its costs instead of assuming the deal works.
| Structure | What the lender mainly looks at | Best fit | Main trade-off |
|---|---|---|---|
| DSCR loan | Property rent against the property's debt payments | Single rentals and small portfolios, buyers whose tax returns understate income | Lender terms and any prepayment penalty vary by program |
| Blanket loan | Combined value and rent of several properties | Consolidating several rentals into one loan | All properties secure the same loan, so one default touches all of them |
| Bank statement loan | Deposits over a set period | Self-employed owners buying a rental | Documentation of account history is heavier |
| Agency (Fannie Mae) loan | Personal income, credit, reserves, number of financed properties | Buyers with room under agency limits | Limits on financed properties and added reserve rules as the count grows |
| Jumbo loan (generic) | Credit, reserves, property value | Only where a purchase exceeds agency limits | Availability for investment property varies by lender |
For agency rules, read Fannie Mae directly: general borrower eligibility requirements, multiple financed properties for the same borrower, minimum reserve requirements, and cash-out refinance transactions. When you reach the agency limits, portfolio-style programs are usually the next step.
Each lender sets its own list, so treat this as a starting checklist and confirm it before you order anything. Call (702) 766-3744 and we will tell you which items apply to your program.
| Document | Why a lender asks for it | Where it usually matters |
|---|---|---|
| Signed lease or market rent estimate | Documents the rent used to test whether the property covers its own debt | DSCR loans |
| Bank statements for the period the lender specifies | Deposits stand in for tax-return income | Bank statement loans |
| Entity papers (articles, operating agreement, EIN letter) | Shows who owns the property if you buy through an LLC | Programs that allow entities |
| Proof of funds and reserves | Shows cash for closing and for carrying the property | All investor programs |
| Schedule of real estate owned | Lists each property, its loan and its rent, so the lender sees the whole portfolio | Blanket and multi-property loans |
| Insurance quote and HOA details, if any | These are part of the property's monthly carrying cost | DSCR and blanket loans |
| Government ID and credit authorization | Identity check and credit review | All programs |
| Purchase contract or current mortgage statement | Defines the transaction being financed | Purchase and refinance |
When one loan covers several rentals, two terms decide how flexible you are later: the release provision and the prepayment term. Both vary by lender and program, so ask for them in writing before you commit.
David Ghazaryan puts it this way: "A loan that saves you money today can become expensive if you need to refinance or sell before a prepayment penalty expires." Pick your exit before you pick the loan.
David Ghazaryan is also a real estate investor, and the advice below is how he screens financing on a rental.
In David's words: "One thing being a real estate investor has taught me is that getting a loan approved and making a good investment are two different things. I've seen investors spend weeks negotiating a purchase price and then barely examine the financing terms. They focus on the interest rate. I look at the entire transaction: cash invested, monthly carrying costs, reserves, prepayment penalties, and the exit strategy."
These are general pointers to official sources. Confirm your own situation with a CPA or attorney.
Two portfolio offers can look alike and still behave differently. Put each lender's quote side by side and compare the terms below. Every one of them is set by the lender, so ask for each in writing. Questions? Call (702) 766-3744 and we will walk through a quote with you.
| Term | What it means | Question to ask the lender |
|---|---|---|
| Loan-to-value (LTV) | The loan balance compared with the property's appraised value or price. | Which value does the lender use, and does a cash-out refinance change the limit? |
| Debt service coverage ratio (DSCR) | Property rent compared with the monthly debt payments on that property, including taxes and insurance. | What ratio does the program need, and which rent figure counts, lease or appraisal estimate? |
| Amortization | How the principal balance is paid down over the loan's schedule. | Does the loan fully amortize, or is there an interest-only period or balloon payment? |
| Prepayment penalty | A charge some investor loans apply if you pay off or refinance early. | How is it calculated, and does a single-property release trigger it? |
| Seasoning | How long you must own a property before a lender will refinance against its value. | How long must I hold before a cash-out refinance, and does it differ for an LLC? |
| Reserves | Liquid funds the lender wants you to keep after closing. | Are reserves counted per property or for the whole portfolio? |
| Rate type | Whether the interest rate is fixed or adjustable during the loan. | When can an adjustable rate change, and what limits apply? |
| Recourse | Whether the lender can pursue you personally if the collateral does not cover the debt. | Is the loan full recourse, limited recourse or non-recourse, and what does a personal guarantee cover? |
| Escrow and impounds | Whether taxes and insurance are collected monthly with the payment. | Is an escrow account required for this property? |
| Origination and closing costs | Charges to arrange and close the loan. | Please itemize every charge on the Loan Estimate or term sheet before I commit. |
Run the numbers on the property before you run them on the loan. Start with the rent you can document, then subtract the carrying costs the lender will count: property taxes, insurance, any HOA dues and the loan payment itself. If the rent barely covers those costs, a DSCR lender may see thin coverage, and a different structure, more cash in the deal or a different property may be worth considering. Your lender sets the minimum coverage and the cash required, so ask for both rather than assuming.
Next, stress the result. Ask what happens if a unit sits vacant for a few months, if insurance rises or if you have to sell before a prepayment term ends. Portfolio loans reward investors who have thought through the bad month as well as the good one. Finally, confirm the loan is business-purpose: it must be for non-owner-occupied investment property, not a home you will live in.
List every property with its address, current loan balance, monthly rent and any lease end date. That schedule is the first thing a blanket or multi-property lender reads. Then decide whether you want one blanket loan or separate loans. One loan is simpler to manage but ties every property together; separate loans keep each rental independent. Ready to talk it through? Contact us or call (702) 766-3744.
David Ghazaryan is the owner and broker of iQRATE Mortgages (NMLS 1862492) in Las Vegas. He entered the mortgage industry in 2005 and founded a tax practice in 2008, where he has prepared more than 6,000 tax returns, so our team reads a rental portfolio the way an owner and a tax preparer do: rent first, then the full tax bill. iQRATE arranges DSCR loans for investment properties in Nevada, California, Texas and Florida. We have no Merced office. iQRATE Mortgages is licensed in California. See more on our About page and the investor hub.
Company-wide ratings as shown on our profiles: 5.0 stars from 77 reviews on Google, and 5.00 stars from 9 reviews on Zillow (iQRATE Mortgages, NMLS 1862492). Ratings reflect past customers and do not predict your outcome. The quotes below are verbatim from those profiles. They come from other markets and other transactions.
"Andrei and David were so great! They're helpful and communicated everything with me through the whole process. I am so pleased and look forward to using iqrate for my future investment properties. 10/10 Will be reccomending to friends."
Kassandra, Google review, company-wide, other-market (investment property buyer)
"David handled the purchase of my investment duplex in Olympia - Washington State. He came recommended by my realtor, and was very attentive, closed on time, and communicated clearly."
Nnamdi, Zillow review, company-wide, other-market (Washington State)
"The best experience that I have ever had with mortgage company, David and his team are awesome and they always keep me updated on a daily basis about my mortgage process. They are professional, down to earth, helpful and they always available to answer all your questions. Thank you David and iQRate mortgages"
Edmond, Google review, company-wide, other-market
"Great professional work! Because of exceptional coordination from Andrei and the team, our escrow was closed seamlessly several days earlier. All our questions and concerns were addressed promptly. My husband and I would highly recommend this team to whoever is looking for a new mortgage or refinancing."
Oksana, Google review, company-wide, other-market
"The team at iQRate Mortgages is experienced, thorough, and professional. They are also very personable and are there to walk you through the process step by step."
Shawnda, Google review, company-wide, other-market
"This guy knows his numbers, taxes, rules and whatever else goes into that paperwork nightmare. Needless to say, I highly recommend him."
Garik, Zillow review, company-wide, other-market (self-employed buyer)
More on the reviews page.
It is investor financing that does not follow Fannie Mae and Freddie Mac rules. The lender sets its own guidelines, which is why DSCR, blanket and bank statement programs are often grouped under the name.
Often yes, through a rent-based DSCR program or a bank statement program, where the lender does not rely only on tax-return income. Each lender sets its own rules and approval is not assured.
No. iQRATE is a mortgage broker. We arrange financing with lenders, and the lender makes the credit decision.
Many investors do, and many investor programs allow it. Lender rules differ, so ask before you form the entity. See the Franchise Tax Board link above for California LLC obligations.
No. These are business-purpose loans for non-owner-occupied investment property only.
One loan secured by several properties. The properties are cross-collateralized, which means they all back the same loan, so a problem with one can affect the rest.
No. iQRATE Mortgages is based in Las Vegas and is licensed in California.
A provision that lets you sell or pay off one property and remove it from the blanket loan. Whether a lender offers one, and on what conditions, varies. Ask before you sign.
Usually a lease or rent estimate, bank statements if you qualify on deposits, entity papers for an LLC, proof of funds and reserves, and ID. See the checklist table above and confirm with the lender.
Yes, because plans change. If you may refinance or sell early, check how any penalty is calculated before you choose the loan.
It does not always end the deal. Read the purchase contract and ask whether incentives survive outside financing. David's story above was a Nevada transaction and is not a promise of any outcome.
Some programs use bank deposits or the property's rent instead. Each lender sets its own rules, and approval depends on underwriting.
No. We can compare options, but each lender makes its own credit decision and approval is never assured. Calling (702) 766-3744 is the fastest way to find out which programs fit your property.
Submit the application or call (702) 766-3744. You can also reach us through our contact options.
Call (702) 766-3744 and tell us the property, how long you plan to hold it and whether you own other rentals. We will match it to programs. Start your application or call (702) 766-3744.
Disclosures. iQRATE Mortgages, Company NMLS 1862492. David Ghazaryan, NMLS 1486726. (702) 766-3744. Equal Housing Opportunity. iQRATE is a mortgage broker, not a lender. This page is general information, not a commitment to lend, and not tax or legal advice. Loans are for business-purpose, non-owner-occupied investment property only. Programs, terms and approval depend on the lender and are subject to underwriting. Census figures are official estimates for Merced city and are not property-specific.
