What type of loan involves the borrower granting a lien on the property until the loan is repaid?

A mortgage loan involves the borrower granting a lien on the property as collateral to secure the loan amount. This means that if the borrower defaults on the loan, the lender has the legal right to take possession of the property through foreclosure. The lien remains in effect until the loan is fully repaid, ensuring that the lender has a claim on the property. In essence, the property itself acts as security for the debt, providing the lender with assurance that they can recover their investment through the property if necessary.

Other types of financing do not typically involve this kind of direct lien arrangement. A blanket loan is a type of mortgage that covers multiple properties, but it still operates under the same principle of securing the loan with those properties. Development impact fees are charges imposed by local governments on developers to fund infrastructure improvements and do not pertain to loans or liens. Revenue bonds are a funding mechanism for projects that generate income but do not require the borrower to grant a lien on property in the same way a mortgage does.