When borrowers need creative financing, they often look for mortgages funded by the seller. However, several types of seller financing are available and it can be difficult to tell the difference. Today I want to examine the seller carry back mortgage.

In essence: A seller carry back mortgage allows a buyer to take out a small loan from the seller in addition to his primary loan from a bank. In this way, buyers are able to avoid pricey PMI (mortgage insurance) payments to the traditional lender and compensate for having a down payment less than 20%.

To learn more, see: The Seller Carry Back Mortgage

Tags | creative financing, seller carry back mortgage, Seller Financing