What is the main purpose of a seller carry back mortgage?

The main purpose of a seller carry back mortgage is to provide financing from the seller to the buyer. In this arrangement, the seller finances a portion of the purchase price, allowing the buyer to acquire the property without needing to secure traditional financing for the entire amount. This can be particularly beneficial in situations where buyers may face difficulties in obtaining a mortgage through conventional lenders due to strict credit requirements, insufficient income, or other factors. By providing seller financing, sellers can attract a wider pool of buyers and facilitate a smoother transaction, while buyers may find it easier to purchase the home with more flexible terms set by the seller.

The option regarding improving the buyer's credit score is unrelated to the seller carry back mortgage, as that type of mortgage primarily addresses financing needs rather than credit evaluation. Covering closing costs or eliminating the need for a down payment are also not the primary functions of this type of arrangement; those concepts pertain to different aspects of the home buying process.