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Down payment assistance programs down payment grants. A down payment serves two important purposes. One, it lowers the amount you need to borrow. If the price of the car is $20,000 and you provide a $2000 down payment, your loan will be for $18,000. This helps lower your monthly payment as well since your loan is for less money. The downpaymnent also helps bridge the gap between qualifying for the loan and being denied. If the lender full answer.
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