This type of mortgage is used to fund the purchase of two or more parcels of real property. It is commonly utilized to fund commercial purchases. An example of this is when a real estate developer owns several undeveloped lots and decides to mortgage them in order to build homes. Instead of taking a mortgage on each property, the real estate developer only needs to take out a blanket mortgage on the combined value of their properties.
Blanket mortgage
This type of mortgage is used to fund the purchase of two or more parcels of real property. It is commonly utilized to fund commercial purchases. An example of this is when a real estate developer owns several undeveloped lots and decides to mortgage them in order to build homes. Instead of taking a mortgage on each property, the real estate developer only needs to take out a blanket mortgage on the combined value of their properties.
