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.