The Benefits of Blanket Mortgages for Individuals

Blanket Mortgages can be beneficial for individuals too. Blanket mortgages on rental property loans allow creating a lien on two or more real estate parcels simultaneously. A homeowner wanting to purchase a new property before selling his or her existing property can acquire a blanket mortgage to continue making payments on the existing property and obtain the new property simultaneously. This enables an individual to use the equity from the old property to help finance the purchase of the new one. Once the old property is sold and its mortgage is repaid, the mortgage for the new property remains.

Blanket Mortgage Requirements for Rental Property Lending

The key to securing a blanket loan is to look for the kind of collateral that a lender will find adequate. A good thing about a blanket mortgage is that the collateral involves multiple properties. This gives enough reasons to blanket mortgage lenders to approve the loan. Whether a borrower is using it to purchase land, add a second home or buy rental homes as an investment, the more collateral the borrower has, the more financing options the borrower will have.

For the newbies in the real estate investment world, it is crucial to note that blanket mortgages are not a long-term solution. After using the blanket loan to obtain the property you want, make punctual payments for 6 months or a year, and then ask a traditional lender to refinance the loan over a longer-term if you are unable to satisfy the balance of the loan at the end of that period.

If you are in the position to take on this sort of mortgage, blanket financing can offer you the flexibility you need to obtain some good profits in the real estate market.

If you are curious about blanket mortgage and your own real estate situation, speak with Rental Home Financing at 888-375-7977 to find out the best way to make it work for you. The time to enter in the real estate market is now, and Rental Home Financing stands ready to help with your rental property lending. We give 75% LTV and 660 FICO minimum along with other amazing terms.