What type of mortgage covers multiple parcels of real estate?

A blanket mortgage is designed to cover multiple parcels of real estate under a single loan. This type of mortgage is particularly useful for developers or investors who may want to finance several lots or properties simultaneously. Instead of securing separate loans for each parcel, a blanket mortgage aggregates them, simplifying the financing process.

Additionally, a significant feature of a blanket mortgage is that it often allows for partial releases of portions of the property. This means that as specific parcels are sold, they can be released from the mortgage obligation without fully paying off the loan, making it an efficient financing option for property investors.

In contrast, a commercial mortgage generally refers to financing for income-producing commercial properties and does not necessarily cover multiple parcels. A package mortgage is typically used to finance a residential property along with personal property, like furniture, rather than multiple parcels of real estate. An equity mortgage is based on the equity of a single property and likewise does not apply to multiple parcels.