what are the disadvantages of a vendor take back mortgage 
for buyers the main disadvantage of a vendor take back mortgage is that the interest rates tend to be higher than a traditional mortgage because the seller s lien is subordinate to the primary lender the seller typically charges a higher interest rate to compensate for their greater level of risk the bottom linea vendor take back mortgage is a lending vehicle where the owner of a property lends a buyer part of the purchase cost this allows people to buy homes that they would not otherwise afford but it does come with a degree of risk for the seller and higher interest rates for the buyer 