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Blanket Mortgage

Blanket Mortgage

A type of loan used to fund the purchase of more than one piece of real property. A blanket mortgage is often used for subdivision financing.


A blanket mortgage is a great tool for consolidating multiple pieces of real estate into one loan, making it easier to manage the debt associated with them. It is a single mortgage that covers two or more pieces of real estate as collateral for the same loan. Each piece of real estate is held together by the blanket mortgage; however, the individual pieces of real estate can be sold individually without paying off the entire loan. This gives investors the flexibility to invest and spread their risk across multiple properties while still having the financial freedom to access the value of their investments without penalty. The terms of the blanket mortgage itself can vary greatly, allowing investors to tailor it to meet their needs. The blanket mortgage can include adjustable rates, balloon payments, and other features that may be beneficial or required depending on the lender and the type of real estate being used as collateral. The blanket mortgage also makes it easier to manage the taxes associated with each specific piece of property. The loan default risks associated with blanket mortgages are quite low, making them an ideal financing option for investors.

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