Down payment
A down payment is the portion of a property's purchase price that the buyer pays in cash at closing.
A down payment is the portion of a property's purchase price that the buyer pays in cash at closing. The rest of the price is usually covered by a loan.
Why it matters to a Las Vegas investor
The cash you put down determines how much you borrow, which shapes your monthly payment and the cash left over after the mortgage. For a Las Vegas rental, it is one of the first decisions to settle before you look at specific homes.
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Questions about Down payment
Is a down payment the same as closing costs?
No. The down payment goes toward the purchase price. Closing costs are the separate fees paid to complete the sale, such as escrow and title charges.
Is the down payment on a rental treated like one on a primary home?
Lenders often treat investment property differently from an owner-occupied home, so the terms can differ. Ask your lender how an investment purchase is handled.