Posted on: 27th Nov, 2007 07:05 am
Please explain this to me in layman terms with an example if possible...i find conflicting explanations on the web
Thanks
Ravi
Thanks
Ravi
Hello Ravik
Welcome to Mortgage Fit,
A purchase money loan aka as Purchase Money Mortgage or Seller Financing, is when a buyer borrows money from a seller to finance the home being purchased. Sometimes when the a buyer is unable to get a traditional loan from a lender they can resort to Purchase Money Mortgage. Buying the property through seller financing.
These home loans have a loan term of 1 or 2 years or they may continue up to 5 years. After seeking a tradtional lender and being denied, that lender should provide you with complete copies of the appraisal or other documents that are helpful in evaluating the property-value.
Related Article: www.mortgagefit.com/discuss/nodownpayment-forkatrina.html
Thanks,
Jean
Loan Officer
Welcome to Mortgage Fit,
A purchase money loan aka as Purchase Money Mortgage or Seller Financing, is when a buyer borrows money from a seller to finance the home being purchased. Sometimes when the a buyer is unable to get a traditional loan from a lender they can resort to Purchase Money Mortgage. Buying the property through seller financing.
These home loans have a loan term of 1 or 2 years or they may continue up to 5 years. After seeking a tradtional lender and being denied, that lender should provide you with complete copies of the appraisal or other documents that are helpful in evaluating the property-value.
Related Article: www.mortgagefit.com/discuss/nodownpayment-forkatrina.html
Thanks,
Jean
Loan Officer
A purchase money loan is a loan used to purchase an asset. This type of loan sometimes has priority over other loans that are secured by the same collateral.
