What type of loan is a builder using if the builder is using two properties as collateral for the loan?
Rationale: A blanket loan allows a borrower to use multiple properties as collateral, making it ideal for builders who may want to finance multiple projects simultaneously. This type of loan simplifies the financing process by consolidating multiple mortgages into one.
Option B, over secured, refers to a loan backed by collateral exceeding the loan amount, but it does not specify the use of multiple properties. Option C, package loan, typically involves financing for both real estate and personal property, not specifically multiple properties. Option D, wrap-around, is a financing method that includes an existing mortgage, which does not directly pertain to using two properties as collateral.
