Finance
A purchase-money mortgage is one in which:
AThe buyer borrows money from a bank to purchase property
BThe seller provides financing directly to the buyer for the purchase✓ Correct
CThe buyer uses an FHA loan to purchase the property
DThe mortgage is secured by an investment property
Explanation
A purchase-money mortgage is a form of seller financing in which the seller takes back a mortgage from the buyer as part of the purchase transaction. The seller essentially acts as the lender, which can help buyers who cannot obtain conventional bank financing.
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