Blanket Mortgage

A blanket mortgage is but one of about a dozen types mortgages that vie for first place amongst those seeking out financing. When deciding if this is the one you want to wrap you finances in is something only only you can decide. So it helps to have some facts to base your selection on.

This type is is usually a first mortgage that is security for the loan that has been borrowed against the property. It can also be formulated to borrow against more that one asset at a time, giving the mortgagor an option that covers more than one piece of real estate at the same time. Hence the term blanket mortgage sometimes refers to as a blanket lien or loan that covers almost all varieties of holdings or collateral owned by the one acquiring the debt.  This lends to the borrowing of  legal tender against more.
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Oftentimes this type of mortgage is popular with developers and builders who purchase
huge lots with the purpose of dividing them into smaller ones to be sold separately. The blanket lien is good for present and future property, which is especially appealing to real estate investors or land developers. Additionally if one buys an apartment in a building with a blanket mortgage you may be require to assume a share of liability for the mortgage if it is registered against the whole building. Therefore you may have to pay a larger down payment with cash because it may be hard to secure a second mortgage to cover the difference of the purchase price and the previously fixed amount of the blanket mortgage that you must assume.

Additionally to finance initial buying of real estate or refinance an existing blanket debt, a cooperative can use a blanket mortgage, they may also use one to finance improvements
to projects. Some have even used their principal residence for additional collateral so they can purchase multiple pieces of property and have them wrapped under one umbrella mortgage.

So depending on your current needs and your future investment endeavors a blanket mortgage may be what you are after. You may want to also learn about  reverse mortgages.