The world of real estate and financing is an intimidating one, to say the least. The promise of investing in real estate well is that you can achieve true financial success and security. The greatest part about learning about real estate and how to navigate the market is that it’s a commodity that will always be in need. As long as there are people there will be industry, homes, recreation and all of those happen around real estate.
However, the most daunting aspect of venturing into this world is typically the concept of loans and mortgages. This part of the journey can feel like there is a never-ending amount of information and knowledge to be attained. Not only that, but it can be overwhelming to try and think through which options make the most sense for you and what you want to uniquely accomplish.
The good news is that at Vaster Capital, there is a team of some of the best professionals in the industry that are equipped to make your goals and vision a reality. Going further than just a credit score, Vaster Capital will look at you as a person taking helping you not only understand the best options but navigate those options.
No matter where you find yourself in your current financial and real estate journey, there is an option that can help you move toward your goals and dreams and Vaster Capital has the people to help make that a reality.
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Blanket Morgtage
The area that most people need help with is in understanding the complex world of mortgage loans. This is understandable as it can seem for good reason like this world is almost made to be complicated on purpose. Rest assured that even if you don’t quite understand how you could apply for a mortgage or which one best fits you, Vaster Capital can help.
Blanket Mortgage for Multiple Properties
A Blanket Mortgage is one of several kinds of mortgages that can be attained by someone looking to enter into real estate. This mortgage has some very unique qualities that appeal to the person who wants to purchase multiple properties.
This can be extremely beneficial because, as the name implies, one mortgage can cover more than one purchase. Some unique benefits come with this characteristic of the blanket mortgage.
First, being able to purchase multiple properties under one loan eliminates the damage that your credit could undergo if you were to take out several loans. It’s an unfortunate part of reality that a person can be seemingly penalized for simply having their credit checked multiple times. If an individual were to take multiple mortgages out, this would inevitably happen. A blanket mortgage represents a one-time credit check for a loan that covers multiple properties and so avoids the damage your credit score can attain.
Another benefit is that you can sell different properties out from the mortgage without affecting the state of the mortgage itself. Depending on the situation, this can be extremely advantageous as it doesn’t lock you into a commitment with one of the properties it covers.
This kind of loan is a great option for people looking to purchase, fix and flip multiple properties for a profit. It also would be ideal for real estate investors looking to have properties to rent out. This also impacts those who are looking to build real estate and then sell off different parts of the development.
The Draw Back
While a blanket mortgage can be the best option for some individuals, it does have its drawbacks. For instance, it may be difficult to find a lender that will give out this specific type of mortgage as it’s not one of the commonly held mortgage types.
A blanket mortgage may also require a much higher down payment. Because this mortgage could represent a higher risk to the lender, it’s not uncommon to see lenders require a 25-50% down payment on a blanket mortgage.
Blanket mortgages also tend to incur higher interest rates along with higher closing costs. This largely imparts that a blanket mortgage is typically taken out in conjunction with a real estate venture. This differs from a typical mortgage, like say for a homeowner. These ventures always represent a certain amount of risk, so lenders will do their part to protect their investment.
Let Vaser Capital Help You
If you are interested in finding out if a blanket mortgage is right for you, contact Vaser Capital and let our trained professionals help you answer this important question today!
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