What is a Vendor-Take-Back (VTB) Mortgage?

Essentially, the Seller becomes a type of private lender in the deal, where the Buyer and Seller negotiate the terms of the loan (i.e. interest rate, repayment terms, etc.).  The amount borrowed by the Buyer can vary:  it could cover the closing costs, be part of the down-payment, or even be used to finance a majority of the property.

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