Minimum Down Payment

Minimum Down Payment

The minimum allowable ratio of down pay- ment to sale price on any loan program.

If the minimum is 10%, for example, it means that you must make a down payment of at least $10,000 on a $100,000 house or $20,000 on a $200,000 house.

The minimum down payment ratio is equal to one minus the maximum LTV. If the maximum LTV is 95%, for example, the minimum down payment is 1 - .95 = .05, or 5%.

References in periodicals archive ?
China will cut the minimum down payment for first-time home buyers in many cities, as part of efforts to boost the property market and slowing economy, according to a recent report by Shaighai Daily.
There were major stumbling blocks during talks with Tottenham, who wanted to make a minimum down payment with the rest dependent on appearances and other conditions.
The vehicle is available with a minimum down payment of INR21,000.
21, 2014, the Central Bank issued a circular ordering all banks and financial institutions to require a minimum down payment of 25 percent for any car or housing loan and stipulated that the monthly installment should not exceed 45 percent of family income.
According to the results of a recent survey conducted by Zelman & Associates, 39 percent of those surveyed estimated that the minimum down payment requirement for a home is at least 15 percent of the purchase price.
The industry and consumer advocates lobbied together to remove any minimum down payment to help preserve access to credit for first-time buyers and modest-income borrowers.
Combined with the potential lowering of the minimum down payment to 3% for some borrowers, this should have a positive impact on communities with lower incomes," added O'Grady.
With a minimum down payment of 30% of auto price, ICBC credit card installment for auto purchases features simple and standard business process, offering alternatives such as 12, 24 and 36 installments in place and preferential installment fees.
Under this regulation, based on a loan-to-value ratio for the first investment up to five million dirhams, expatriates will be limited to borrowing up to 75 per cent of the property value - the challenge being to gather a minimum down payment of 25 per cent.
Their credit standards are more restrictive than government-insured loans and require a minimum down payment of five percent for an owner occupied property.
Vaidya warned that the rollback of fuel subsidies, increase in minimum wages and enforcement of minimum down payment are likely to have negative impact on sales of new vehicles in 2013.
Seller's commit to holding financing with minimum down payment for any qualified buyer.

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