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 ?
More information on the Downpayment Plus Programs can be found on the Chicago FHLB's website at http://ci.
The Bank additionally has provided approximately $12 million for income-eligible homebuyer grants of up to $5,000 for downpayment and closing cost assistance.
For first-time buyers making very small downpayments (about 3 percent), the affordable price is close to the loan amount for a given income.
Nehemiah and other supporters of downpayment assistance have fought and will continue to fight on behalf of those who are capable and deserving of becoming homeowners.
This litigation began because HUD improperly reversed its rule permitting seller funded downpayment assistance (SFDPA) and then refused to apply that new rule equally to all SFDPA providers.
This study clearly convinces the writer that neither government agencies nor private lenders should guarantee, insure or make long-term amortized loans for a period beyond 25 years, and that under no ordinary conditions should the downpayment be less than 10% in cash or its clear equivalent.
Borrowers making a downpayment of 20-30 per cent will pay a margin of 1.
16 that would overturn the ban and purportedly protect the FHA by limiting the use of seller-financed downpayment assistance to households with credit scores from 620 to 680.
The agency administers a variety of downpayment assistance programs and offers a 16-hour home buying class.
A gift to this type of trust is generally combined with the grantor selling some of the S stock to the trust in return for a downpayment and a note.
A MURDER trial jury was told the stepson of businessman Kenneth Iddon made a pounds 500 downpayment for someone to kill him.
In addition to RESPA, the hearing touched on HUD's budget request for fiscal year 2005, including key mortgage issues such as the new Administration proposals to increase the affordable housing goals of the GSEs and a new zero downpayment option for FHA loans.