What does a package mortgage include?

A package mortgage is a type of loan that includes both real property and personal property as part of the financing arrangement. This is particularly useful in transactions where the buyer is financing not just the real estate, such as a house or land, but also other personal property that may be included in the sale, like appliances, furniture, or even fixtures that are typically considered personal property.

This type of mortgage is advantageous for buyers because it allows them to secure one loan that covers multiple aspects of their purchase, simplifying the financing process. In contrast, a traditional mortgage typically only covers real estate, and other personal items would need to be financed separately or paid for in cash.

The inclusion of only real property or personal belongings by themselves would not constitute a package mortgage, and options that reference only government-funded homes are not relevant to the general definition of a package mortgage. Thus, the correct answer reflects the comprehensive nature of this type of financing option.