Brandon - this is what is known as a Conventional Mortgage, where the buyer puts down 20% of the purchase price and finances the remaining 80%. Example: House costs $300,000. Buyer finances $240,000, so the mortgage will be for $240,000 and then comes up with the remaining $60,000 themselves.
Holders who finance with this form of mortgage do not have to pay PMI (private mortgage insurance) which is required by lenders where the borrower puts down less than 20%. This can save you about $270/month on these kind of numbers. A conventional mortgage borrower is often seen as more a more attractive prospective buyer to a Seller too.
Hope this helped! If I can help in any other way, or to help you find a property, just let me know,
Villa G Realty, Inc.