FinancingCreative_financingEASY
A buyer wants to purchase a home but cannot qualify for a conventional loan. The seller agrees to carry the entire purchase price as a note, with the buyer making payments directly to the seller over 15 years. Title transfers at closing. What type of creative financing is this?
Correct Answer
C) Seller financing with a purchase-money mortgage
When a seller carries the full purchase price as a note and title transfers at closing, this is seller financing secured by a purchase-money mortgage. The seller acts as the lender.
Answer Options
A
Land contract (contract for deed)B
Lease optionC
Seller financing with a purchase-money mortgageD
Wraparound mortgageWhy This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
creative_financingfinancingseller_financingpurchase_money_mortgage
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