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What are the pros and cons of holding a mortgage?

Let’s understand the definition, pros, and cons of holding a mortgage. A holding mortgage is a non-conforming loan the seller provides to the buyer for the purchase of their home. The seller retains a title on the property until the buyer repays the debt. Home buyers with no credit or a low credit score can benefit from a holding mortgage.

What is a holding mortgage?

A holding mortgage is a type of mortgage loan where the seller acts as the lender and retains the property title. The buyer makes monthly payments directly to the owner. This type of mortgage can be a viable option for buyers who don’t qualify for a traditional mortgage, and it can be an opportunity for the seller to earn additional income.

Does a holding mortgage work?

But with a holding mortgage, the buyer may be responsible for paying taxes and insurance directly to a government agency and insurance company. As a form of nontraditional financing, a holding mortgage won’t work for everyone. Make sure you explore your options to see the benefits that other types of loans offer.

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