What is a mortgage that covers more than one property called?

A mortgage that covers more than one property is referred to as a blanket mortgage. This type of financing allows a borrower to secure a loan that encompasses multiple parcels of real estate under a single mortgage agreement. Blanket mortgages are commonly used by developers or investors who own several properties, as they simplify financing and can provide easier management of multiple loans.

For instance, if a developer wants to purchase several lots for constructing residential properties, using a blanket mortgage allows them to finance all the lots under one loan, instead of needing separate mortgages for each lot. This can lead to lower closing costs and less administrative work over time.

In contrast, other types of mortgages like the wraparound, balloon, or subordinate mortgages have different characteristics and functions that do not pertain to covering multiple properties simultaneously. A wraparound mortgage entails a new mortgage that wraps around an existing one, a balloon mortgage features a lump-sum payment due at the end of its term, and a subordinate mortgage refers to a secondary lien on a property that is secondary to the first mortgage in terms of repayment priority.