Purchase-Money Mortgage

A mortgage issued to the borrower by the seller of the home as part of the purchase transaction. This is usually done in situations where the buyer cannot qualify for a mortgage through traditional lending channels. This is also known as seller or owner financing.

A purchase-money mortgage might be offered by the seller as incentive to purchase a property. This can be used in situations where the buyer is assuming the seller’s mortgage, and the difference between the balance on the assumed mortgage and the sales price of the property is made up with seller financing.


Investment dictionary. . 2012.

Look at other dictionaries:

  • purchase money mortgage — see mortgage Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. purchase money mortgage …   Law dictionary

  • purchase-money mortgage — A mortgage executed to secure the purchase money or a part thereof by a purchaser of property, contemporaneously with the acquisition of the title thereto, or afterward, but as a part of the same transaction. 36 Am J1st Mtg § 15 …   Ballentine's law dictionary

  • purchase-money mortgage — A mortgage given by a buyer in lieu of cash when the buyer is unable to borrow commercially for the purchase of property. Bloomberg Financial Dictionary …   Financial and business terms

  • purchase-money mortgage — noun : a mortgage to secure part or all of the purchase price of the property mortgaged given by the buyer to the seller or to a third person furnishing a loan to the buyer …   Useful english dictionary

  • purchase money mortgage — Fin a mortgage whose proceeds the borrower uses to buy the property that is collateral for the loan …   The ultimate business dictionary

  • purchase-money paper — A note or draft given the vendor or seller in payment of the purchase price of real or personal property purchased by the maker. See purchase money mortgage …   Ballentine's law dictionary

  • mortgage — mort·gage 1 / mȯr gij/ n [Anglo French, from Old French, from mort dead (from Latin mortuus ) + gage security] 1 a: a conveyance of title to property that is given to secure an obligation (as a debt) and that is defeated upon payment or… …   Law dictionary

  • purchase — pur·chase 1 vb pur·chased, pur·chas·ing vt 1: to acquire (real property) by means other than descent or inheritance 2: to obtain by paying money or giving other valuable consideration; specif: to take (property) by a voluntary transaction (as a… …   Law dictionary

  • mortgage — /morgaj/ A mortgage is an interest in land created by a written instrument providing security for the performance of a duty or the payment of a debt. At common law, an estate created by a conveyance absolute in its form, but intended to secure… …   Black's law dictionary

  • mortgage — /morgaj/ A mortgage is an interest in land created by a written instrument providing security for the performance of a duty or the payment of a debt. At common law, an estate created by a conveyance absolute in its form, but intended to secure… …   Black's law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.