What does a blanket mortgage cover?

A blanket mortgage is specifically designed to cover multiple parcels of land or properties under one single loan agreement. This type of mortgage is often used by developers and builders as it allows them to finance several pieces of real estate at once, facilitating the management of the properties and the financing for the development. For instance, in a subdivision development, a builder might use a blanket mortgage to cover multiple lots or homes, streamlining the borrowing process.

This financing method provides more flexibility and efficiency in managing funds, as opposed to having separate mortgages for each property. Thus, selecting the option that states it covers multiple parcels of land accurately reflects the functionality and applicability of a blanket mortgage.