asked 151k views
3 votes
Which type of mortgage is known as

seller financing?
a. Package mortgage
b. Term mortgage
c. Second mortgage
d. Purchase money mortgage

asked
User Villaa
by
7.6k points

1 Answer

4 votes

Final answer:

Seller financing is also known as a Purchase Money Mortgage, where the seller provides the buyer with a loan to purchase the property. Option d is correct.

Step-by-step explanation:

The type of mortgage known as seller financing is d. Purchase money mortgage. A purchase money mortgage is a type of mortgage where the seller of the property provides financing to the buyer. This arrangement typically occurs when the buyer cannot obtain financing through traditional means, such as a bank loan.

The seller essentially becomes the lender and holds the mortgage on the property until the buyer pays off the loan in its entirety.

answered
User Kube
by
8.5k points

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