Finance
What is a 'purchase money mortgage'?
AA mortgage taken out to buy investment properties only
BA mortgage given by the buyer to the seller as partial payment for the purchase of property (seller carryback)✓ Correct
CA mortgage that must be used specifically to purchase the property (not for cash-out)
DA mortgage insured by HUD
Explanation
A purchase money mortgage is a mortgage given by the buyer to the seller as part of the purchase price, essentially seller financing. Purchase money mortgages have special status in California — lenders generally cannot pursue a deficiency judgment after foreclosure on them.
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