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
Investment in residential properties by private businesses and people. ...
(1) Flooring in a structure. (2) Open structure with flooring erected outside a main building. A deck can have different levels with direct access to the main structure. It is usually ...
That part of a roof which projects beyond the sides of the building. The eaves keep rain overflow of the sides of a building structure and seal the roof rafters. ...
A knowledgeable person authorized to aid in the underwriting of property and casualty insurance. ...
Two or more authorized brokers who agree to cooperate together representing a principal for the completion of a real property sale. ...
lender who charges an exorbitant interest rate, which is typically illegal because it exceeds the interest rate allowed in the state. A borrower may go to a loan shark if he cannot obtain ...
Regulation of the Securities and Exchange Commission (SEC) establishing the criteria to avoid a private offering. For example, John wants to sell shares in an apartment house to several ...
When an Appraisal is done, its ultimate goal is to define a Market Value for that property. So, in short, market value is the value of a real estate property in a free competitive ...
The Latin term pro rata has a significant meaning in legal, real estate as well as job industries. To define pro rata, anyone can take a quick vocabulary lesson. Any element that is split ...
Have a question or comment?
We're here to help.