Finance

In Maryland, a 'purchase money second mortgage' occurs when:

AA buyer takes a second mortgage after settlement
BThe seller provides secondary financing as part of the purchase, taking a second lien position✓ Correct
CThe first lender provides a second loan
DA third party cosigns the mortgage

Explanation

A purchase money second mortgage is financing provided by the seller (or another party) at the time of purchase, taking a junior lien position behind the primary first mortgage.

Related Maryland Finance Questions

Practice More Maryland Real Estate Questions

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

Take the Free Maryland Quiz →