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
Degree of construction of residential property measured in number of units or dollar value. ...
Amount charged for each unit of rental property. An example of a unit might be square footage of space or an apartment. ...
Any lease with a specific starting time and a specific ending time. ...
Written agreement between two or more parties to extend the terms of a document. ...
In general terms, a licensee means a person or legal entity who has received authorization or permission to perform a particular activity through another party (the licensor in our case.) ...
Also know as Fannie Mae, the FNMA accept bids from approved lenders as to the amount, price and terms wish to sell Fannie Mae. Upon deciding how much money it will spend during a given time ...
A lender can be a private individual, a private or public group, or an institution that loans funds to a person or business that the lendee would later repay with interest in most cases. In ...
A fiduciary intermingling a clients funds or one who is entrusted with funds and groups them with those of his own. This practice is considered a breach of a fiduciary relationship and a ...
Same as term resale proceeds: Net amount received when property is sold. It equals the selling price less outstanding mortgage balance less all costs incurred in connection with the sale. ...
Have a question or comment?
We're here to help.