down payment

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Down Payment

A percentage of the total purchase price of an item that is proffered when the item is bought on credit.

In an installment sales agreement, a buyer is required to pay part of the total price, usually in cash, and later pays the balance through a number of regularly scheduled payments.

A down payment is sometimes known as earnest money, or a sum of money that a buyer pays upon entering a contract to indicate a Good Faith intention as well as an ability to pay the balance.

down payment

noun collateral, deposit, installment, payment, retainer, stake, surety
See also: deposit, handsel, installment
References in periodicals archive ?
CCB's branches in coastal Zhejiang province have raised the minimum down-payment for first-time home buyers to 40 percent from the official minimum of 30 percent required by the banking regulator, and raised the mortgage rates in the region to 1.
At the peak of the market, for example, so-called piggy-back mortgage deals allowed home-buyers to borrow 10 percent or 20 percent of a home's value and use those borrowed monies to meet the down-payment requirements of their mortgages.
Based on the success of that program with Moinian and in the industry overall, American Express is expanding its program to enable cardmembers to enjoy the convenience and rewards of paying for condominium down-payments on the American Express[R] Card.
The ruling noted that an organization using seller funding for its down-payment assistance program does not get taxexempt status because it is not construed to be operating exclusively for charitable purposes.
My recollection is they had other sources of construction money lined up, but now they are requesting to use the $1 million down-payment money set aside for them for construction costs.
MyCommunityMortgage includes down-payment options as low as $500 or 1% of the home sales price, more flexibility on credit histories, obligation to income ratios as high as 41% and options that require no cash reserves.
From 2000 to 2004, the total proportion of FHA-insured loans with down-payment assistance grew from 35 percent to nearly 50 percent.
THE NEHEMIAH CORPORATION OF CALIFOR-nia, Sacramento, California, has announced it has reached a $300 million milestone of down-payment gifts distributed.
Federally Insured Plan Offers Down-Payment Savings Plan For Newlyweds