Table of Contents
- What Is a Blanket Mortgage?
- How Does A Blanket Mortgage Work?
- Who Are Blanket Mortgages For?
- What Are The Advantages Of A Blanket Mortgage?
What Is a Blanket Mortgage?
A blanket mortgage is a single loan secured by two or more pieces of real estate. The mortgage secures the real estate as security; however, individual parcels of real estate may be sold without paying off the full mortgage.
Instead of taking out many mortgages, blanket mortgages make it simpler to finance various homes.
- A blanket mortgage is a single loan secured by two or more real estate properties.
- While the real estate is used as security, the individual properties may be sold without resolving the mortgage on its whole.
- Developers, real estate speculators, and flippers often employ blanket mortgages.
- A blanket mortgage’s principal advantage is that it enables the borrower to have more cash on hand—for instance, a property owner may save the expenditures involved with applying for and closing on numerous mortgages.
How Does A Blanket Mortgage Work?
A blanket mortgage is a single mortgage that covers many properties, with the collection of assets acting as security for the loan. Real estate developers and bigger investors often acquire more than one property at a time; thus, a blanket mortgage enables them to consolidate such deals into a single loan.