Purchase-Money Mortgage
A mortgage securing debt used to acquire the property, whether the credit comes from the seller or a third-party lender.
Quick flashcard
What does Purchase-Money Mortgage mean on the Texas real estate exam?
Answer: A mortgage securing debt used to acquire the property, whether the credit comes from the seller or a third-party lender.
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Purchase-Money Mortgage definition
A purchase-money mortgage secures credit used to acquire the property. The credit may come from the seller, who takes back a note and security instrument, or from a third-party lender that funds the acquisition.
Seller financing is one purchase-money structure, not the definition of every purchase-money mortgage.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Financing & Settlement (7 of 80 National)
From definition to recall
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Try 5 free questionsThis definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.