Question

Which of these is NOT an example of a purchase money mortgage?

a) Jenna's seller, Rob, is financing her purchase of his home less a 10% down payment that Jenna must provide. The loan is for 20 years at 6% interest. Jenna will have title to the property.
b) Kennedy is financing the down payment for the couple who's buying her house. She'll have a lien against the property.
c) Kirsten is financing the full purchase price for the investors who are purchasing her duplex. The investors will provide a 15% down payment, and Kirsten will hold title to the property.
d) Megan's lender has given Russell permission to borrow the down payment for his home purchase from the seller. The seller will hold a second-position lien against Russell's property until the loan is paid in full.

Answer 1

Option c) Kirsten financing the full purchase price for the investors who are purchasing her duplex is NOT an example of a purchase money mortgage.

Step-by-step explanation:

A purchase money mortgage is a type of mortgage loan where the seller of the property provides the financing for the buyer, usually with a down payment.

Based on the options provided, option c) Kirsten financing the full purchase price for the investors who are purchasing her duplex is NOT an example of a purchase money mortgage. In this scenario, Kirsten is acting as a lender rather than a seller providing financing. Option C