Finance
In Texas, a 'purchase money mortgage' refers to:
AAny mortgage used to purchase a property
BA mortgage given back to the seller as part of the purchase price✓ Correct
CA government-insured mortgage only
DA short-term construction loan
Explanation
Technically, 'purchase money mortgage' most often refers to seller financing where the seller accepts a promissory note secured by a mortgage (or deed of trust) in lieu of cash from the buyer. The seller acts as lender and the deed of trust is given back to the seller as security. It can also refer to any mortgage used to purchase property.
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