Finance
A wraparound mortgage involves:
AA government-backed loan with flexible terms
BA new mortgage that includes the existing mortgage balance, with the seller continuing to pay the underlying loan✓ Correct
CCombining two FHA loans
DA reverse mortgage for seniors
Explanation
In a wraparound mortgage, the seller retains their existing mortgage and provides a new, larger mortgage to the buyer. The seller collects payments from the buyer and continues paying the underlying lender.
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