What is a blanket mortgage commonly used for?

A blanket mortgage is specifically designed to cover multiple pieces of real estate under a single loan. This type of mortgage is particularly useful for real estate developers or investors who may wish to finance a portfolio of properties or projects at once, rather than obtaining separate loans for each property. By consolidating financing into one blanket mortgage, borrowers can streamline their financial management, reduce the total number of loan transactions, and often benefit from more favorable terms due to the larger loan amount and reduced administrative costs.

In contrast to the other options, financing existing properties only refers to a more traditional mortgage structure that does not typically encompass multiple properties. Providing personal loans to developers is not a core function of a blanket mortgage, as these loans are specifically intended for real estate and not personal financing needs. Lastly, while a blanket mortgage can be used for residential properties, it is not exclusively geared toward long-term residential financing solutions; it can also apply to commercial properties and development projects, further emphasizing its versatility in handling multiple real estate assets.