A purchase loan is a loan issued to the buyer of a home by the seller. It is also called seller financing or owner financing.
Last Updated Date: May 17, 2022
Nepal Investment Bank Ltd. (NIBL), beforehand Nepal Indosuez Bank Ltd., was set up in 1986 as a joint endeavor among Nepalese and French accomplices. The French accomplice (holding half of the capital of NIBL) was Credit Agricole Indosuez, an auxiliary of one of the biggest financial gathering on the planet. Later in 2002, a gathering of Nepalese organizations including brokers, experts, industrialists and financial specialists gained the half shareholding of Credit Agricole Indosuez in Nepal Indosuez Bank Ltd., and in like manner the name of the Bank additionally changed to Nepal Investment Bank Ltd.
If potential homebuyers can't qualify for a traditional mortgage loan from a bank, they can investigate a loan provided by the home's seller. This is called a purchase money loan. Purchase money loans are often used by buyers who have trouble qualifying for a traditional mortgage due to poor credit, or by those who do not have enough cash available for the down payment they need. If you are offered seller financing, you should still have an independent appraisal done to ensure that you are not overpaying or taking out a larger loan than the property is worth. The term "purchase money loan" is sometimes used for any mortgage used to buy a home or property. This is to distinguish loans used for purchasing a property from home equity loans or refinanced mortgages. It is seller financing, seller's loan, owner financing, owner's loan, purchase-money mortgage, purchase-money loan
Purchase money loans usually take one of three forms: