Purchase money mortgage (PMM) Flashcards
(4 cards)
1
Q
What is a Purchase money mortgage (PMM)?
A
A mortgage given as part of the buyer’s consideration for the purchase of real property.
Unlike a traditional mortgage that comes from a bank or credit union, the seller of the property provides all or part of the financing directly to the buyer.
2
Q
When is a PMM delivered?
A
When the deed is transferred as a simultaneous part of the transaction.
3
Q
What does a PMM create?
A
A vendor’s lien.
4
Q
What is a PMM used for?
A
To fill a gap between the buyer’s down payment and a new first mortgage or an assumed mortgage.
