Contracts
What is a 'purchase money mortgage' (PMM) and how does it differ from a traditional bank loan?
AA PMM is from a bank; a bank loan is from the government
BA PMM is provided by the seller to the buyer as part of the purchase transaction; a traditional bank loan comes from a third-party institutional lender✓ Correct
CA PMM is only for commercial properties; bank loans are for residential
DA PMM has no interest; a bank loan charges market interest rates
Explanation
A purchase money mortgage (PMM) is seller financing where the seller accepts a note and mortgage from the buyer as partial payment for the property. The seller acts as the lender, and there is no third-party bank involved for that portion.
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