What do you mean by a Puchase Money Loan??

ravik · Joined: 07 Sep 2007 Posts: 22 10.42 Dollars($)

Please explain this to me in layman terms with an example if possible...i find conflicting explanations on the web

Thanks
Ravi

Jeanette · Posted: Tue Nov 27, 2007 8:54 am Post subject:

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

Guest 0.10 Dollars($)

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.

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