Finance
A purchase money mortgage is one in which:
AThe lender is a commercial bank
BThe seller provides financing to the buyer as part of the purchase transaction✓ Correct
CThe buyer uses only cash to purchase the property
DThe government guarantees the loan
Explanation
A purchase money mortgage is seller financing where the seller extends credit to the buyer to facilitate the purchase. The seller essentially acts as the lender, and the property serves as collateral.
Related Montana Finance Questions
- A Montana lender is considering a loan for a property in a designated Special Flood Hazard Area (SFHA). The lender must notify the borrower and require:
- Private mortgage insurance (PMI) is typically required when:
- A jumbo loan is one that:
- A 'wraparound mortgage' or 'all-inclusive trust deed' in Montana is a form of seller financing where:
- A wraparound mortgage is an arrangement where:
- In Montana, a deed of trust is used instead of a mortgage because it allows for:
- A Montana lender who charges 'prepayment penalties' is charging the borrower for:
- A balloon mortgage typically requires:
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →