Finance

What is a purchase money mortgage (PMM) in Hawaii?

AA. A mortgage where the buyer borrows from a commercial bank only
BB. Seller financing where the seller takes back a mortgage note from the buyer✓ Correct
CC. A mortgage insured by the Federal Housing Administration
DD. A second mortgage used to eliminate PMI

Explanation

A purchase money mortgage is seller financing where the seller acts as the lender, accepting a promissory note secured by a mortgage rather than receiving the full cash purchase price.

Related Hawaii Finance Questions

Practice More Hawaii Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Hawaii Quiz →