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%.

The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Once the branch has accepted the payment proposal, SSS only requires a minimum down payment equivalent to at least 5 percent of the total contribution delinquency.
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The minimum down payment is $20 and applied toward a $250 life membership account.
The minimum down payment for a mortgage loan in the UAE is 15-20 per cent, but there is no maximum cap.
We are interested in a house in the area, but our old house hasn't sold yet, so we would put a minimum down payment on the new house and take out a large mortgage.
Minimum down payment requirements on finance company loans have been lowered twice in recent years - first in June 2015 and again in December 2016 - and are now as low as 5% for some finance companies.
Buyers can benefit from a payment plan of 25% during construction and 75% upon handover, with a minimum down payment of 5% of the purchase price, Aldar's statement said.
In its 2016 Global Real Estate Outlook report, Alkhabeer said that though low affordability among potential homebuyers is a concern, recent government initiatives to reduce minimum down payment requirement is a positive development.
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.

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