What is a loan? When the bank on anyone lends you money but you have to pay it back in a certain amount of years with interest.
Do you know anyone who has borrowed money to buy a house? Yes, my dad did when we had a home when I was in middle school.
Who lent them the money? The bank lent him money bc he had great credit.
Did the borrower have to make a down-payment? I believe he didn't bc he had such a great credit that they just gave it to him fast.
In addition, it is important to know that if a borrower has a bade credit history, as about 1 in 4 peoples do, then their loan is known as a "sub-prime" mortgage. Why would a bank even consider making a sub-prime loan? Give a higher interest and they make more money then they loaned.
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