Select Page


If you’re interested in real estate investing, you may already have heard or seen the term “blanket loan” used in doing your research. This is because a blanket loan or blanket mortgage is a commonly used financial tool for developers and investors. By learning more about this type of financing, you may be able to use it to help you in launching your own real estate projects.


What is a Blanket Loan?

A blanket loan refers to an amount that’s borrowed to help an investor or developer buy multiple properties at once. Although the purchases are covered under the same mortgage, they can later be sold individually according to the investor’s plans. The blanket loan is backed by the properties bought with the loan, which the lender uses as collateral. However, this type of loan stipulates that properties that are sold are then exempt from being used as collateral after the sale date. As a result, the borrower isn’t obligated to fully repay the loan when they sell just one or two of the properties that were purchased with the loan.


Can Anyone Get a Blanket Loan?

The average homeowner who has an interest in investing in real estate likely won’t qualify for a blanket loan. Rather, this type of loan is intended for use by established real estate investors with considerable portfolios. It’s often utilized by real estate development companies as well. As investors or house flippers, an individual can make use of a blanket loan to consolidate their mortgages under a single loan. Alternatively, it can help a house flipper to update the properties they buy as it provides the funding to cover those expenses. It may be more beneficial to real estate developers in that it allows them to buy and develop several properties at one time, ensuring they can enjoy a faster turnaround that will help them see a quicker return.


If you have good credit and the resources to qualify for a blanket loan, you can get started by talking to the lenders in your area. You should also search online for similar types of mortgages at lower rates. As with any type of loan, the terms of your blanket loan will make a difference in determining the profitability of your real estate investments.