A portion of the down payment that the seller is requesting can be in the form of a Balloon Payment. This type of payment will require additional principal payments be made at regularly scheduled intervals. Such as $1000.00 every 3 months for 1 year, or $4000.00 in total. An additional way of addressing a down payment deficit is to take the $4,000.00 that was to be paid over the 12 months and simply pay the seller $333.33 per month in addition to the required monthly payment, thus satisfying the $4,000.00 additional requirement. It is important to note in the Contract that the additional payments to the seller are to be straight principal reductions on the outstanding Real Estate Contract.