Finance
A NC 'purchase money mortgage' (PMM) is one where:
AThe buyer pays cash and takes back a mortgage from the seller
BThe seller provides financing (takes back a note) as part of the purchase transaction✓ Correct
CThe lender funds construction and land costs simultaneously
DThe buyer assumes the seller's existing mortgage
Explanation
A purchase money mortgage is seller financing — the seller takes back a promissory note and deed of trust from the buyer as part of the sale price, essentially lending the buyer part of the purchase price.
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