No Money Down
Definition of "No money down"
A method of purchasing real estate whereby a maximum amount of leverage is used. Normally the seller will finance the down payment necessary to acquire a mortgage. Thus, the purchaser is able to acquire ownership to the property with none or a marginal cash downpayment. For example, John wishes to purchase a home for $150,000. in order to acquire an 80% mortgage, he would need to provide a $30,000 cash down payment: $150,000*80%=$120,000. $150,000-$120,000=$30,000. The seller agrees to provide a $30,000 note in order to have the down payment. Thus, the purchaser acquires the home with the $30,000 note from the seller and the $120,000 mortgage from a mortgage lender for a total of $150,000.
Popular Real Estate Terms
Significant information that if disclosed would affect an individual's decision. For example, a buyer would probably not enter into a contract with a seller of real property if it was known ...
A written contract of a group of property owners, typically condominium owners, describing their joint ownership obligations and rights. The association agreement usually allows members to ...
Raw land in its natural condition which has in no way been improved. ...
As a suburban nation with the majority of Americans living in the suburbs, the actual classification of suburbs had long been expected. Still, recently, three academic approaches for ...
The down payment on the price of a real estate. For example, it is customary to make a down payment of 10% of the value of a real estate parcel upon signing the purchase agreement. ...
Just to be clear: an Open house is not when you invite friends over to meet your new house. At least not in the real estate world.When you hear someone talking about an Open House, they ...
The government under emminent domain takes Way to determine how much to pay an owner whose property before-and-after method. ...
The concept of a release can define various meanings in the financial and real estate business. Typically, it establishes a discharge or literal escape from a loan borrower's economic ...
The tenant is forced to leave the premises if he complains about the poor condition of the apartment or office space he has leased. This type of eviction is illegal in many states. ...
Have a question or comment?
We're here to help.