Finance

What is a purchase money mortgage?

AA mortgage from a bank for purchasing property
BSeller financing where the seller takes back a mortgage as part of the purchase price✓ Correct
CA government mortgage for first-time buyers
DA cash-out refinance

Explanation

A purchase money mortgage is seller financing where the seller accepts a mortgage (note and mortgage) from the buyer in lieu of cash for all or part of the purchase price. It can facilitate sales when conventional financing is difficult.

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