Finance
In South Dakota, a 'wrap-around mortgage' (or 'all-inclusive trust deed') is typically used in:
AGovernment-backed lending programs
BCreative financing situations where the seller retains an existing mortgage and provides a new, larger loan to the buyer✓ Correct
CCommercial construction financing
DRefinancing of investment properties
Explanation
A wrap-around mortgage allows the seller to keep their existing mortgage in place and provide a new, larger loan to the buyer at a higher interest rate. The seller makes payments on the original mortgage and pockets the spread.
Related South Dakota Finance Questions
- In South Dakota, a mortgage 'assumption' allows:
- In South Dakota, a VA loan guaranteed by the Department of Veterans Affairs benefits eligible veterans by:
- In South Dakota real estate transactions, an 'adjustable-rate mortgage' (ARM) typically features:
- In South Dakota, 'points' paid to a lender can be classified as either 'discount points' or 'origination points.' Discount points differ in that they:
- In South Dakota mortgage lending, the debt-to-income (DTI) ratio measures:
- In South Dakota, a deed of trust differs from a mortgage in that:
- In South Dakota, a 'loan modification' differs from a 'refinance' in that a loan modification:
- The South Dakota Housing Development Authority (SDHDA) FirstHome program is designed primarily for:
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →