What kind of loan uses more than one property as collateral?

A blanket mortgage is specifically designed to cover more than one property as collateral within a single loan agreement. This type of mortgage is commonly used by real estate developers or investors who own multiple properties, allowing them to consolidate their financing into one loan, which can simplify the management of their investments. The key feature of a blanket mortgage is its ability to secure multiple properties under a single loan, rather than requiring a separate loan for each property.

The other types of mortgages listed, such as conventional mortgages or home equity loans, typically secure only one specific property. Conventional mortgages usually finance just a single home, while home equity loans are based on the equity of an individual property. A subordinate mortgage often refers to a second mortgage which is secured by a specific property but does not have the broad collateral coverage typical of a blanket mortgage. This distinction is crucial in understanding why the blanket mortgage is the correct answer for this question.