Wraparound Mortgage: What Is It And How It Works

Source: Forbes — 

If you’re having trouble qualifying for a traditional mortgage, there may be another financing option available. A wraparound mortgage is a form of seller financing that’s designed to benefit both parties in the purchase.

Buyers may have a better chance at qualifying for a home loan, and sellers can profit. However, both the buyer and seller should understand the benefits and drawbacks of this financial arrangement.