Casa Academy

Reviewed by Casa Academy and updated July 29, 2026 using the current DBPR checklist and Pearson VUE scheduling guidance.

Package Mortgage

A package mortgage is a single loan secured by real property that also covers personal property such as appliances, furniture, or business equipment transferred with the sale, blending real and personal collateral under one note and mortgage rather than separate chattel financing.

Exam context

Package mortgage covers realty plus personal property. Blanket mortgage covers multiple parcels. Fixture becomes real property by attachment. Chattel mortgage secured personal property only historically.

Collateral scope

The security agreement lists both the land and described personalty. Fixtures legally part of real estate may already be covered by a standard mortgage, but package loans explicitly include items that might otherwise be repossessed separately. Default allows the lender to foreclose on real estate and pursue UCC remedies on personal property where permitted.

Typical transactions

Hospitality sales finance FF&E with the building. New home sales bundle appliances in one loan when lender policy allows. Commercial buyers finance equipment and leasehold improvements together. Agents verify which items convey and whether separate bills of sale are needed for tax allocation.

Examples

  • Restaurant sale

    A buyer obtains a package mortgage on a turnkey restaurant including ovens and booths listed in the collateral schedule attached to the recorded mortgage.

  • New home with appliances

    A lender funds a package loan on a spec home where refrigerator, washer, and dryer are included in the purchase price and named in the loan documents.

Keep studying

Practice package mortgage questionsEnroll in pre-licensing

Related terms

  • FixturePersonal property that may become part of real estate.
  • Blanket mortgageOne mortgage covering multiple parcels or units.

Related resources

Sources