Purchase-Money Mortgage

A purchase money mortgage is a type of mortgage issued to the buyer by the seller of the property as part of the purchase transaction. This arrangement is often used when the buyer cannot qualify for a traditional mortgage through a bank or lender. In a purchase money mortgage, the seller extends financing to the buyer for the purchase of the property, and the buyer agrees to repay the seller according to the agreed-upon terms. This type of mortgage is also known as seller financing or owner financing.