What is a common use of a blanket loan?

A blanket loan is commonly used by land developers and builders to finance multiple properties under one mortgage. This type of loan allows them to cover the cost of purchasing and developing multiple parcels of land simultaneously. As the developer divides the land into separate lots for sale or construction, they can release individual lots from the blanket loan, gradually paying down the overall loan amount as each property is sold or developed.

This versatility makes blanket loans particularly beneficial in real estate development, where financing needs can evolve as projects progress. It streamlines the lending process, as developers can manage financing for multiple properties without needing to secure separate loans for each one, which would be more cumbersome and less efficient.

On the other hand, options focusing on personal education loans, refinancing a single property, or immediate cash loans for purchases do not typically align with the primary function of blanket loans as a means to finance multiple real estate properties simultaneously.