Purchase-money mortgage


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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.
References in periodicals archive ?
The only distinction you need to pay attention to at this point is the distinction between purchase-money mortgages and the other non-purchase forms of mortgage lending, such as refinance, reverse mortgages and loan modifications.
Demyanyk and Van Hemert (2008) observed that cash-out refinances between 2001 and 2007 tended to default less frequently than even purchase-money mortgages.
65 trillion, with purchase-money mortgages reaching an all-time record of $900 billion.
Refinancing a borrower or providing a purchase-money mortgage to a borrower where the debt ratio has either increased or is beyond the borrower's financial means: Think about this for a minute.
The purchase-money mortgage market is considerably less sensitive to interest rate fluctuations than the re-finance mortgage market.
The purchase-money mortgage loan for the hotel and casino project will be provided through Great Eastern Investments, LLC, of Atlanta, Georgia.
In addition, the refinance business will continue to fall off, leaving lenders competing fiercely for purchase-money mortgage leads.

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