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 ?
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.
25, 2014 /PRNewswire-USNewswire/ -- A recent study, conducted by Marsha Courchane and Adam Gailey of Charles River Associates, and Rajeev Darolia of the University of Missouri, shows that while the Asian population "applied for and obtained a larger share of purchase money mortgages than[other minority] borrowers in recent years, measured in both number and dollars," there are still a great many challenges faced by the community when applying for a mortgage, (Borrowers from a Different Shore: Asian Outcomes in the US Mortgage Market).
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.
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?
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.
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).
The FHA Loan Underwriting and Transmittal Summary form replaces both the FHA Mortgage Credit Analysis Worksheet Purchase Money Mortgages (MCAW) (HUD-92900-PUR) and FHA Mortgage Credit Analysis Worksheet (HUD-92900-WS).
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.
First Niagara senior vice president of residential lending Daniel Dintino said that while the overall purchase volume in Upstate New York is down from 2008, First Niagara has gained greater market share in 2009 with record levels of purchase money mortgages.
Contrary to popular belief, purchase money mortgages have generally not become commodities--they remain highly service sensitive.