A blanket mortgage is commonly used to finance what?

A blanket mortgage is commonly used to finance what?

• A. A single property
• B. A portfolio of commercial properties
• C. Multiple parcels of property under one loan
• D. Residential refinancing

Answer: (C)

A blanket mortgage is designed to finance more than one property under a single loan. It's commonly used by developers or investors who own several parcels in a project, so they don’t need separate loans for each parcel. This setup streamlines financing with one agreement and one set of terms. A typical feature is a partial release clause, which lets individual parcels be released from the mortgage as they’re sold or developed, while the lender keeps a lien on the remaining parcels. This arrangement is especially useful for subdivisions or portfolios where properties are acquired together but sold off separately. It isn’t usually used for financing a single property or just for standard residential refinancing, where a single-property loan is more typical.

A blanket mortgage is designed to finance more than one property under a single loan. It's commonly used by developers or investors who own several parcels in a project, so they don’t need separate loans for each parcel. This setup streamlines financing with one agreement and one set of terms. A typical feature is a partial release clause, which lets individual parcels be released from the mortgage as they’re sold or developed, while the lender keeps a lien on the remaining parcels. This arrangement is especially useful for subdivisions or portfolios where properties are acquired together but sold off separately. It isn’t usually used for financing a single property or just for standard residential refinancing, where a single-property loan is more typical.