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Purchase-Money Mortgage
(redirected from Purchase Money Mortgages)

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Purchase-money mortgage
A mortgage given by a buyer in lieu of cash when the buyer is unable to borrow commercially for the purchase of property.

Purchase-Money Mortgage
A mortgage in which the home buyer borrows from the seller instead of, or in addition to, a bank or thrift. Purchase-money mortgages usually are made when the buyer cannot qualify for an ordinary home loan due to lack of credit or income. Alternately, a seller may offer a purchase-money mortgage in a mortgage-takeover agreement, that is, when the sale price of the home is equal to what remains on the seller's own mortgage.


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Q: So, the target for low-income single-family purchase money mortgages is slightly higher because the expected range is higher than recent experience--and this higher target is in the median range of expected originations?
With the increased capacity, First Niagara successfully launched a campaign to discount rates up to 1/4% on purchase money mortgages to its existing banking customers as well as new customers of the Bank, allowing the bank to expand its number of full relationship households.
In addition, the knowledge that a property could be financed widens the net of feasible transactions, as opportunities are created for credit-worthy buyers unable to supply the full purchase price in cash, and for sellers who are unable to supply purchase money mortgages.
 
 
 
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