What Is a Purchase-Money Mortgage?

If you looking for a way to finance your home purchase, you may want to consider a purchase-money mortgage. A purchase-money mortgage is a mortgage where the buyer borrows monies from the seller to help finance the purchase of the home. If the borrower is able to secure a portion of the funds through a bank loan then the money borrowed from the seller can be used to make up the difference. Many sellers will advertise the property as seller-financed to let the buying public know that they are willing to assist finance the purchase of their property.