Purchase-Money Mortgage
A mortgage the buyer gives as part of the purchase price, commonly when the seller finances part of the sale.
A purchase-money mortgage is a loan used to buy the property, given by the buyer at the time of purchase. The term most often describes seller financing, where the seller takes back a note and mortgage for part of the price instead of receiving all cash.
Seller financing through a purchase-money mortgage can help a buyer who cannot obtain full institutional financing.
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Types of Mortgages and Financing (4% of the exam)
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This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.