---
title: "Down payment — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/down-payment/
---

- [Home](/)
- /
- [Glossary](/glossary/)
- /
- Down payment
Mortgage & lending[All terms starting with D](/glossary/#letter-D)

# Down payment

The share of the purchase price you pay in cash, becoming your starting equity in the property.

The down payment sets your loan-to-value ratio, which in turn drives pricing and whether mortgage insurance is required. It is separate from closing costs and prepaids, which are due on the same day but are not equity.

Minimums differ by program, and gift funds from an eligible donor are often allowed when the paper trail is documented properly. Programs and lender overlays both apply, so confirm the requirement for your specific file.

## Put a number on it

This term feeds the calculators below.

- [Home Affordability CalculatorEstimate what home price fits your income, debts, and expenses.](/calculators/affordability/)
- [Buying Power CalculatorSee how rate, down payment, and debts change your buying power.](/calculators/buying-power/)
- [Mortgage Payment CalculatorEstimate monthly mortgage payments with taxes, insurance, and PMI.](/calculators/mortgage-payment/)

## Related terms

- [LTV (Loan-to-Value Ratio)The loan amount as a percentage of the property’s value, the main measure of how much equity cushions the loan.](/glossary/loan-to-value/)
- [PMI (Private Mortgage Insurance)Insurance on a conventional loan that protects the lender when the borrower has less than the program’s required equity.](/glossary/pmi/)
- [Closing costsThe lender, title, and third-party fees due at closing: separate from your down payment.](/glossary/closing-costs/)
- [Earnest moneyA deposit made with an offer to show the buyer is serious, held in trust and credited toward closing.](/glossary/earnest-money/)
- [Gift fundsMoney from an eligible donor toward your down payment or closing costs, allowed when documented with a clear paper trail.](/glossary/gift-funds/)

## Go deeper

- [Should you wait for 20% down?](/blog/should-i-wait-for-20-percent-down/)
- [Down payment assistance and gift funds](/blog/gift-funds-down-payment-rules/)

## More in Mortgage & lending

- [Amortization](/glossary/amortization/)
- [APR (Annual Percentage Rate)](/glossary/apr/)
- [ARM (Adjustable-Rate Mortgage)](/glossary/arm/)
- [Cash-out refinance](/glossary/cash-out-refinance/)
- [Closing costs](/glossary/closing-costs/)
- [Conforming loan](/glossary/conforming-loan/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)

Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. [Licensing and disclosures](/licensing/)