FinanceIntermediateDelaware Exam
A seller in Delaware offers to 'carry back' a second mortgage to help the buyer close. This is known as:
AA purchase money mortgageCorrect
BA bridge loan
CA graduated payment mortgage
DA shared equity mortgage
Why A purchase money mortgage Is Correct
Answer A: A purchase money mortgage
A purchase money mortgage (PMM) or seller carry-back is a mortgage given by the buyer to the seller as part of the purchase price, in which the seller acts as the lender for part of the transaction.
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
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