A blanket mortgage is specifically designed to allow an investor to offer multiple properties as collateral. This type of mortgage is particularly useful for real estate investors who may be financing several properties simultaneously. By using a blanket mortgage, they can secure a loan that covers all the properties under one agreement, simplifying the process and potentially reducing costs compared to obtaining separate loans for each property.
This arrangement allows for flexible financing options—once one property is sold, the mortgage can often be partially released without needing to refinance the entire loan. As a result, investors can efficiently manage their portfolio and leverage multiple assets to secure financing for further investments.
In contrast, a conventional mortgage typically covers a single property, while a second mortgage is secured against the same property as the first mortgage, not allowing for multiple properties as collateral. A reverse mortgage is specifically designed for seniors to convert home equity into cash, and it does not apply in this context of multiple properties.