What is a Blanket Mortgage commonly used for?

A Blanket Mortgage is specifically designed to finance multiple properties under one loan agreement, making it particularly useful for developers or investors who own several lots or properties. This type of mortgage allows the borrower to manage multiple properties more efficiently, as they can be funded and secured under a single financing arrangement rather than having to obtain individual loans for each property.

Developers often utilize a Blanket Mortgage to cover the purchase of multiple lots within a subdivision, facilitating construction and development activities while also easing the administrative burden associated with managing several separate loans. This can also simplify the process of selling individual lots, as payments can be allocated from the overall proceeds.

In contrast, financing a single property is characteristic of traditional mortgages, while refinancing existing debt and securing a home equity line of credit pertain to different financing structures that are not typically associated with the benefits of a Blanket Mortgage.