Minimum Down Payment

Definition of "Minimum Down Payment"

Jill Brumley
  Keller Williams Southlake

The minimum allowable ratio of down payment to sale price on any loan
program. If the minimum is 10%, for example, it means that you must make a down payment of at least
$10,000 on a $100,000 house or $20,000 on a $200,000 house. The minimum down payment ratio is equal
to one minus the maximum LTV. If the maximum LTV is 95%, for example, the minimum down payment is 1 -
.95 = .05, or 5%.

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