Finance
A 'purchase money second mortgage' provided by a seller or down payment assistance program is:
AAlways forgiven if the buyer stays 5 years
BA junior loan used to help fund the purchase, subordinate to the first mortgage✓ Correct
CRequired for all FHA transactions
DOnly available to first-time buyers
Explanation
A purchase money second mortgage is an additional loan that helps fund the purchase price, typically subordinate to the first mortgage. It can be provided by the seller, a non-profit, or a government program.
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