Finance
In Maryland, seller financing (purchase money mortgage) is a transaction where:
AThe seller borrows money to help the buyer
BThe seller extends credit directly to the buyer as part of the purchase price✓ Correct
CA third-party lender provides a bridge loan
DThe buyer assumes the seller's existing mortgage
Explanation
In seller financing, the seller acts as the lender, allowing the buyer to make payments directly to the seller rather than obtaining a traditional bank mortgage.
Related Maryland Finance Questions
- Under the Home Mortgage Disclosure Act (HMDA), Maryland lenders must report:
- A conventional loan with less than 20% down typically requires:
- A property in Maryland sells for $400,000. The state transfer tax is 0.5%. What is the state transfer tax?
- The Maryland Mortgage Program (MMP) is administered by:
- What is the purpose of a loan discount point on a mortgage?
- A transfer tax in Maryland is typically:
- A balloon mortgage is best described as a loan that:
- Which of the following statements about FHA loans is correct?
Practice More Maryland Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maryland Quiz →