Finance
A New Jersey 'purchase money mortgage' (PMM) is one where:
AThe buyer obtains a mortgage from a commercial bank only
BThe seller provides financing to the buyer, taking back a mortgage on the property as security✓ Correct
CThe government subsidizes the purchase price
DThe buyer uses the property's equity as collateral
Explanation
A purchase money mortgage (PMM) is seller financing in which the seller accepts a mortgage from the buyer as part of the purchase price. The seller holds the note and mortgage, and the buyer makes payments to the seller. PMMs can help buyers who cannot qualify for conventional financing.
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