Finance
In New Mexico, a 'purchase money mortgage' (PMM) occurs when:
AThe buyer obtains conventional financing from a bank
BThe seller provides financing to the buyer as part of the purchase transaction✓ Correct
CThe buyer uses cash only
DThe government provides a subsidized loan
Explanation
A purchase money mortgage is seller financing — the seller extends credit to the buyer, taking back a note and mortgage (or deed of trust) as part of the sale. The proceeds go directly toward the purchase price.
Related New Mexico Finance Questions
- In New Mexico, 'private placement memorandum' (PPM) is used in real estate investing when:
- In New Mexico, a 'purchase money deed of trust' means:
- In New Mexico, the 'Good Faith Estimate' (GFE) has been replaced under TRID by which disclosure?
- In New Mexico, which of the following is TRUE about FHA Mortgage Insurance Premium (MIP)?
- A New Mexico lender is subject to the Home Mortgage Disclosure Act (HMDA). HMDA requires lenders to:
- In New Mexico, a 'blanket mortgage' is used most often by:
- Under New Mexico law, the Homeowner Protection Act relates to which of the following?
- In New Mexico, 'mortgage insurance premium' (MIP) on FHA loans differs from PMI in that:
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →