In seller financing, who provides the loan to the buyer?
Correct Answer
B) The seller, by carrying the promissory note
In seller financing (also called owner financing), the seller acts as the lender and carries the promissory note rather than the buyer obtaining a loan from a bank. This arrangement is particularly common in Alaska for remote or rural properties where traditional financing may be difficult to obtain.
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Related Topics & Key Terms
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Related Concepts
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Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
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