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 ?
2, b) or purchase money mortgages, lease purchase agreements or similar securities (Section 204, par.
"George Mason had very strong activity as applications for loan originations exceeded $1.50 billion, with nearly 70% of volume from purchase money mortgages, providing stability in diverse economic conditions.
The court's analysis centered around the status of purchase money mortgages and the special priority they are afforded at law.
ORLANDO - Marilyn Sperling, CEO of the $1 billion Greylock Federal Credit Union, told attendees at the 2015 NACUSO Conference that building strong relationships across all parts of the mortgage loan process is key to increasing market share of purchase money mortgages.
But in the following quarters the numbers steadily rise well above average, before hitting an unprecedented high of 36 percent purchase money mortgages over the past three months.
Yet, they will rank junior to any outstanding first mortgage bonds or purchase money mortgages, DBRS added.
But HERA, recognizing this, as I said, directed us to come up with a regime in which purchase money mortgages and refinance mortgages are treated separately.
The lack of institutions extending real-estate financing has prompted the use of purchase money mortgages, better known as "seller financing."
The transaction was structured to deed 320 acres to each of the Hudspeths' two married children and their wives and 160 acres to their unmarried son in exchange for nonnegotiable notes and purchase money mortgages. The deal also included a leaseback to the Hudspeths.
Section 128(b), which currently requires early good faith estimates of Truth in Lending disclosures in purchase money mortgages only, represents an exception to the general requirement that loan-specific Truth in Lending disclosures only need to be provided by consummation of the credit agreement (often at settlement).
A drop in mortgage loan refinancing activity, increased regulation and a sluggish market for purchase money mortgages have combined to make 2014's first quarter discouraging for some credit union lenders.
Purchase money mortgages offer significant benefits, but they also present additional risks, particularly for the seller, so it's important to plan carefully.