Finance
A 'purchase money mortgage' in Colorado is one where:
AThe buyer uses cash only and avoids a mortgage
BThe seller provides financing to the buyer as part of the purchase transaction✓ Correct
CThe lender contributes to the buyer's down payment
DThe mortgage is used to purchase investment property only
Explanation
A purchase money mortgage (PMM) is seller financing where the seller provides all or part of the financing to the buyer, taking back a mortgage or deed of trust. Also called seller carryback financing.
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