What is a Blanket Mortgage?

A blanket mortgage is a loan used to finance the purchase of two or more pieces of real estate. The distinguishing feature of the blanket mortgage is the “partial release clause." The clause differentiates the blanket mortgage from the traditional mortgage because it gives the borrower the flexibility to make a partial repayment of the loan when a piece of the secured property is sold. A traditional mortgage generally contains a “due on sale clause” and requires payment in full when the secured property is sold. The blanket mortgage is generally considered a tool for commercial purposes; however, there are several circumstances in which different types of borrowers might find a blanket mortgage to be a practical tool for financing. For example, a home buyer who is building a new home might use a blanket mortgage to access the equity in his existing home to help fund the construction of the new home. By using a blanket mortgage to cover the equity in the existing property and the new ...  more

Blanket mortgages have a "release clause" so that if one property under the mortgage gets sold. then that portion of the loan can be paid off and the remaining outstanding balance adjusted accordingly.  more

A Blanket Mortgage is a type of mortgage can save a lot of time to those of you who have multiple plots of land. It allows you to place two or more plots of land under the same mortgage. This way you don’t have to get individual mortgages on each lot. For instance if you buy a huge plot of land and divide it into, we’ll say, 8 lots. Instead of getting individual mortgages on all eight lots, which would be incredibly time consuming, you can bunch it all into one mortgage. It’s just easier to manage.  more

A mortgage covering at least two pieces of real estate for the same mortgage.  more

- Definition A Blanket Mortgage is a mortgage loan that is held against two seperately deeded pieces of real estate property. A Blanket mortgage is different then having one deeded property with two houses residing on the deeded land.  more

A blanket mortgage is a mortgage that covers multiple properties owned by the same owner.  more