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
Unit of ownership in a real estate investment trust. ...
People often use the term in their everyday discourse, yet many wonder what the meaning of common law genuinely implies. Common law refers to a system of jurisprudence based on court ...
An abstractor, or, most commonly known as an abstractor of title, is the individual that determines based on thorough research the condensed history needed for an abstract of title. They ...
Grouping of several columns arranged in intervals supporting an architectural overhang, usually a roof. ...
Mortgage-backed, pass-through securities that segregates mortgage pools into short, medium, and long-term. CMOs arose because GNMA or FHLMC mortgage-backed securities have uncertain time ...
Thinking about selling your own home without an agent? You can. For Sale By Owner or FSBO is how it’s called in the real estate world. It's when a homeowner decides to sell his/her ...
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 ...
Trading of two or more properties containing separate descriptions and separate financial statements. ...
(1) Mildly convex arch built into a load bearing beam, girder, or truss to counteract any load bearing stress placed on it. (2) Slight slope designed into a structure such as a drive4way or ...
Have a question or comment?
We're here to help.