A new homebuyer who is looking to purchase property will need to have cash to offer as a down payment at the time of closing. The down payment is expressed as a percentage of the selling price of the house. Your down payment is paid to the seller, the rest of the money that the seller receives comes from your mortgage loan. The down payment is required as a guarantee, the idea is that when you make a large initial investment in the property, you are more motivated to avoid foreclosure on a home.

The idea of spending a large amount of money up front for a down payment can be one of the most intimidating parts of the home buying process, and often deters people from trying. For this reason, there are several assistance programs available for buyers who need help finding the funds for down payment. Home buyers sometimes assume that these programs are only for low-income or first-time homebuyers, but in reality, that isn’t always the case.

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