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
Person or business that benefits from the work of another person or business. The recipient has not compensated the other party for this gain. In law, the one being enriched at the ...
Not attached to any parcel of land but merely a personal right to use the land of another. ...
External top of a structure such as for an office building or house. ...
Body o law relating directly to condominiums and cooperative developments. Most property law provides vertical ownership of property in the sense that property owners own mineral rights as ...
Any gain or loss from selling of capital assets. The gain or loss is the difference between the net selling price and cost basis. The two types of capital gains or losses for tax purposes ...
Projecting structure or part of a building. For example, a home was built with balconies jutting out from the sides of the building or a large rock formation constructed out into the ocean ...
Fan with an opening to the outside air that lets stale or hot air exit the structure; usually used in a kitchen when cooking or in a bathroom that does not have a window. It is used for ...
Implied assurance from a landlord to a prospective tenant that an apartment is safe and void of health problems. ...
Money set aside for a possible loss, such as from a fire. ...
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