finance
blanket mortgage
A blanket mortgage is a single loan secured by two or more parcels of real estate. Developers and investors commonly use blanket mortgages to finance subdivisions or portfolios. It usually includes a partial release clause, which allows individual parcels to be released from the lien as they are sold once a specified portion of the loan is paid. This lets the developer deliver clear title to each lot buyer.
- Exam tip
- Blanket mortgage = many properties, one loan, plus a release clause. Do not confuse it with a package mortgage, which covers real and personal property in one parcel.
- Example
- A builder finances 20 lots with one blanket mortgage. Each time a lot sells, he pays $40,000 to the lender and that lot is released.
Related terms & state variants
Sources
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Last verified: 2026-10-23