Finance
In NJ, a seller who 'takes back' a second mortgage as part of the purchase price is providing:
AA gift to the buyer
BSeller financing, which reduces the amount the buyer must borrow from an institutional lender or provide as a cash down payment✓ Correct
CA tax-deductible donation
DA government subsidy
Explanation
Seller financing (purchase money mortgage) allows the seller to act as lender for part of the purchase price, reducing the buyer's need for institutional financing or cash. This can facilitate transactions where conventional financing is limited.
Related New Jersey Finance Questions
- Which NJ program provides below-market-rate mortgage financing primarily for first-time homebuyers with moderate incomes?
- A NJ buyer purchasing an investment property (not owner-occupied) typically faces what difference in mortgage terms compared to a primary residence loan?
- New Jersey has a realty transfer fee (RTF) paid at closing. Who is primarily responsible for paying this fee?
- In NJ, 'seller financing' with a purchase money mortgage typically has what lien priority relative to other liens placed at the same time?
- A NJ commercial real estate investor purchases a property using a 1031 exchange. A key requirement for the exchange is that:
- The Truth in Lending Act (TILA) requires lenders to disclose the:
- Which type of NJ mortgage requires the borrower to make interest-only payments for a period, followed by full amortizing payments?
- In NJ, a 'satisfaction piece' or 'mortgage discharge' must be filed by the lender within how many days after full loan payoff?
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