Blanket mortgages are also known as blanket loans. They are specific mortgage types which enable the financing of multiple property units simultaneously. These loans can contribute to a more effective and affordable loan process as well. Whenever any property in the blanket or group is sold or goes through refinancing, this activates the release clause for the same, while the others continue to be a part of the existing mortgage.
A blanket mortgage of blanket loan means one mortgage with coverage for two or multiple real estate properties. These properties become collateral for the mortgage/loan in question, although the individual units may be refinanced/sold without closing the entire loan/mortgage.
Blanket mortgages are excellent options at times, for funding the acquisition/purchase of several properties, particularly for investors, developers and those into flipping properties. Blanket mortgages cover the costs of development and purchase for several properties, and benefit those buyers who are planning to divide their properties into individual portions/lots.
