What distinguishes a blanket mortgage?

A blanket mortgage is characterized by its ability to cover multiple properties under a single loan agreement. This type of mortgage is often utilized by real estate developers or investors who acquire several properties at once, allowing them to finance multiple assets without needing separate loans for each one.

The benefit of a blanket mortgage is that it simplifies the financing process, facilitating the management of multiple properties by combining them into one mortgage product. This can lead to lower overall costs and greater efficiency in the loan management process. It also enables the borrower to sell off one or more properties without needing to pay off the entire loan, as the mortgage will usually include a release clause that allows for the removal of a property from the loan upon sale.

Other options presented in the question describe features that do not align with the nature of a blanket mortgage. A loan only applicable to a single family home, for instance, does not capture the essence of a blanket mortgage as it pertains to individual residential properties. Similarly, a short-term loan and a loan with no interest are not defining characteristics of a blanket mortgage, which may encumber properties over a longer duration and typically involves interest in its structure.