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 ?
It is interesting to note in Figure 1, which shows amortization of a loan on which a 10% downpayment has been made, that the loan balance on a 30-year maturity does not get ahead of the 2% depreciation on the building until the ninth year.
12 to discuss several priority issues facing the apartment industry, including fair housing accessibility, seller-financed downpayment assistance, the solvency of the FHA mortgage program, the project-based Section 8 program and housing assistance for hurricane victims.
In December 2003, President Bush signed into law a new initiative under HOME--the American Dream Downpayment Initiative Act (ADDI)--that authorizes up to $200 million in formula grants to help first-time homebuyers with the biggest hurdle to homeownership: downpayment, closing costs, and rehabilitation costs.
The American Dream Downpayment Act will provide $200 million in grants in each year for the next two years to cover down payment and closing costs for low-income families that qualify for the program.
Work had been expected to begin in June, but Greece's downpayment was not made until late September.
The limits on the amount of FHA loan insurance make these loans unavailable to households seeking to buy more expensive properties, and the low downpayment requirements make them particularly attractive to lower-income households and to first-time homebuyers, who are likely to have fewer financial resources for downpayments and closing costs.
The borrower then uses this "gift" for a downpayment as if it were their own money.
Gozon has explained that, "in making the decision to retain the downpayment, Atty.
This downpayment requirement, the association warns, would keep homeownership out of reach for most first-time home buyers and middle-class households.
For lump-sum offers, they must make a downpayment of 20% of the amount of the offer with any application; for periodic payment offers, taxpayers must comply with their own proposed payment schedule while the offer is being considered.
Echoing NAA/NMHC's concerns about aggressive homeownership practices, a new report by the Government Accountability Office (GAO) calls on HUD to place new controls on downpayment assistance programs used with FHA-insured loans.
The American Dream Downpayment Initiative will give first-time homebuyers assistance grants of up to $10,000, or 6 percent of the home's purchase price, whichever is greater.