What Is a Blanket Mortgage in Real Estate?
A blanket mortgage is a single loan that covers multiple real estate properties—such as several homes, lots, or buildings—under one financing agreement. It’s commonly used by investors, developers, and builders who want to simplify payments and reduce closing costs.
🏦 How a Blanket Mortgage Works
Instead of taking out separate mortgages for each property, a borrower uses one loan secured by multiple parcels. As individual properties are sold or refinanced, a release clause allows them to be removed from the loan while the rest remain under mortgage.
- One lender, multiple properties: Ideal for investors holding several parcels.
- Lower administrative costs: Fewer closings and fewer fees.
- Release clause: Lets you sell one property without paying off the entire loan.
💡 Why Investors Use Blanket Mortgages
- Streamlined financing: Manage several properties with one payment.
- Flexibility: Add or release properties as projects are completed or sold.
- Great for land flippers: Especially when subdividing lots or developing multiple homes.
📚 Related Mortgage & Financing Terms
These pages explain the key terms FSBO sellers encounter when financing or selling property.
🔍 Explore more definitions: What Is in Real Estate Glossary