Down Payment: What Is It, Why Is It Important?
November 24, 2021
One of the largest hurdles of purchasing a farm or rural property is a lender's down payment requirement. AgChoice Farm Credit lender Katie Epstein shares why down payments are important.
In simple terms, what is a down payment and what are the typical requirements from a lender?
A down payment is the amount of cash that a buyer puts towards a transaction. Don't confuse a down payment with the deposit, often a component when you enter into a sales agreement. The deposit is a nominal amount, usually $500 to a few thousand dollars, due when a sales agreement is signed and will go towards the...