Finance
A 'carryback loan' or 'seller financing' is most commonly used when:
AThe buyer qualifies for a conventional bank loan
BConventional financing is unavailable or the parties prefer flexible terms✓ Correct
CThe property is a new construction home
DFHA or VA financing is being used
Explanation
Seller financing (carryback) is often used when buyers cannot qualify for conventional bank financing, interest rates are high, or the parties want more flexible terms. The seller acts as the lender, typically taking back a promissory note and deed of trust.
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