April Lopez is buying a home from Becky Tanner. The selling price is $180,000. April is putting $20,000 down, assuming Becky's $120,000 loan, and Becky is carrying April for the remaining $40,000. Which term best describes this financing arrangement?

Question

Quizplus · Accepted Answer

This scenario describes an assumption with a purchase money mortgage because April is assuming Becky's existing $120,000 loan and Becky is providing financing for the remaining $40,000, which is essentially a loan from the seller to the buyer for part of the purchase price.

April Lopez Is Buying a Home from Becky Tanner