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Fortune
Fortune
Mia Taylor

BIZARRE: How do wraparound mortgages work - What They Never Told You

Photo illustration of a hand pulling a $100 bill and wrapping it around a house. (Credit: Photo illustration by Fortune; Original photos by Getty Images (3))

If you’re struggling to obtain a mortgage to purchase a home, there are unconventional options that may be worth exploring, including the not very well-known wraparound mortgage.

This unique arrangement involves a home seller providing financing to a prospective buyer rather than a bank or mortgage lender. The buyer, in turn, makes payments on the home to the seller. 

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