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                                                                    Exhibit 10.2
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                                                                 August 22, 2000



Bear, Stearns & Co. Inc.
As representative of the Underwriters
245 Park Avenue
New York, New York 10167


Ambac Assurance Corporation
One State Street Plaza
New York, New York 10004

         Re:      Underwriting Agreement dated August 16, 2000 (the
                  "Underwriting Agreement") between Advanta Conduit Receivables,
                  Inc. ("ACRI") and Bear, Stearns & Co. Inc., as representative
                  of the Underwriters (the "Representative") and the Insurance
                  and Indemnity Agreement dated as of August 22, 2000 (the
                  "Insurance Agreement") among Ambac Assurance Corporation (the
                  "Certificate Insurer"), ACRI, as sponsor, Advanta Mortgage
                  Corp. USA, as master servicer, and Bankers Trust Company of
                  California, N.A., as trustee

Ladies and Gentlemen:

                  Pursuant to the Underwriting Agreement and the Insurance
Agreement (together, the "Designated Agreements"), ACRI has undertaken certain
financial obligations with respect to the indemnification of the Underwriters
and the Certificate Insurer with respect to the Registration Statement, the
Prospectus and the Prospectus Supplement described in the Designated Agreements.
Any financial obligations of ACRI under the Designated Agreements, whether or
not specifically enumerated in this paragraph, are hereinafter referred to as
the "Joint and Several Obligations"; provided, however, the "Joint and Several
Obligations" shall mean only the financial obligations of ACRI under the
Designated Agreements (including the payment of money damages for a breach of
any of ACRI's obligations under the Designated Agreement, whether financial or
otherwise) but shall not include any obligations not relating to the payment of
money.

                  As a condition of their respective executions of the
Underwriting Agreement and of the Insurance Agreement, the Representative and
the Certificate Insurer have required the undersigned, Advanta Mortgage Holding
Company ("AMHC"), the indirect parent corporation of ACRI, to acknowledge its
joint-and-several liability with ACRI for the payment of the Joint and Several
Obligations under the Designated Agreements.
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Now, therefore, the Representative, the Certificate Insurer and AMHC do hereby
agree that:

                  (i)      AMHC hereby agrees to be absolutely and
                           unconditionally jointly and severally liable with
                           ACRI to the Underwriters for the payment of the Joint
                           and Several Obligations under the Underwriting
                           Agreement.

                  (ii)     AMHC hereby agrees to be absolutely and
                           unconditionally jointly and severally liable with
                           ACRI to the Certificate Insurer for the payment of
                           the Joint and Several Obligations under the Insurance
                           Agreement.

                  (iii)    AMHC may honor its obligations hereunder either by
                           direct payment of any Joint and Several Obligations
                           or by causing any Joint and Several Obligations to be
                           paid to the Underwriters and to the Certificate
                           Insurer by ACRI or another affiliate of AMHC.







                  [Remainder of Page Intentionally Left Blank]

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                  Capitalized terms used herein and not defined herein shall
have their respective meanings set forth in the Agreement.


                                             Very truly yours,

                                             ADVANTA MORTGAGE HOLDING COMPANY


                                             By: /S/ Michael Coco
                                                 -------------------------------
                                                 Name: Michael Coco
                                                 Title: Vice President

BEAR STEARNS & CO. INC.
as Representative of the Underwriters


By: /S/ Thomas S. Dunstan
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    Name:  Thomas S. Dunstan
    Title:    Managing Director


AMBAC ASSURANCE CORPORATION


By: /S/ Michele Kearns
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    Name:   Michele Kearns
    Title:     First Vice President









                       [AMHC Guaranty to the Underwriter]

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