Real Estate Terms Glossary
What is a Down Payment?
We can define a down payment as the sum of money that a homebuyer saves to help finance the purchase of a property. It is an initial payment (non-refundable) that you pay upfront for purchasing of a high-priced item, like a house. Note that a situation where a large down payment might be necessary is when you purchase within a co-operative property, and this is common in several cities.
Learn more about what’s included in a mortgage note .
Examples of Down Payment
- Example 1: VA loan down payments
- Example 2: USDA loan down payments
Here’s Investopedia’s definition of a down payment.