Finance
A purchase money mortgage (PMM) in Nebraska differs from a traditional mortgage in that the PMM:
AIs used only for commercial property purchases
BIs given by the seller to the buyer as part of the sale transaction to finance the purchase✓ Correct
CRequires a higher down payment than conventional loans
DIs guaranteed by the federal government
Explanation
A purchase money mortgage is seller financing provided as part of the sale. The seller extends credit to the buyer (taking back a mortgage), making them the lender rather than a traditional bank.
People Also Study
Related Nebraska Questions
- Seller financing (purchase money mortgage) in Nebraska involves:Finance
- A Nebraska seller agrees to carry back a purchase money mortgage. This means:Escrow & Title
- A deed of trust used in Nebraska real estate financing differs from a mortgage in that:Finance
- A Nebraska purchase agreement with a financing contingency that specifies 'buyer to obtain a 30-year conventional mortgage at no more than 7% interest' would allow the buyer to cancel if:Contracts
- A Nebraska purchase agreement requires the buyer to provide evidence of financing approval within 14 days. On day 15, the buyer has not provided the evidence. The seller may:Contracts
- A Closing Disclosure (CD) in a Nebraska residential mortgage transaction must be provided to the buyer at least how many business days before closing?Escrow & Title
- A Nebraska purchase agreement's financing contingency protects the buyer if:Contracts
- Nebraska agricultural mortgage lending differs from residential in that lenders typically:Finance
Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
Study This Topic
Practice More Nebraska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nebraska Quiz →