purchase-money mortgage

Definition

A home-financing technique in which buyer borrows from the seller instead of, or in addition to, a bank. Sometimes done when a buyer cannot qualify for a bank loan for the full amount. also called seller financing or owner financing.

Use this term in a sentence

We opted for a purchase-money mortgage because the bottom line seemed more favorable to us and the seller was more than willing.

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The purchase-money mortgage was an adequate way of obtaining the critical financing needed to complete the real estate purchase transaction.

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Because of some poor financial decisions when they were younger, the couple was not able to get approved by the bank for a mortgage. Thankfully of them the seller was willing to do a purchase-money mortgage.

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purchase returns and allowances purchaser