Which term describes the amount of money an individual can provide as a down payment for a loan?

The term that best describes the amount of money an individual can provide as a down payment for a loan is capital. In the context of financing, capital refers to the resources that a person can invest upfront when securing a loan, such as for purchasing a home or other large assets. A down payment is essentially a form of capital that reduces the total amount borrowed and demonstrates to lenders the borrower’s investment in the transaction, thereby potentially lowering the lender's risk.

Equity refers to the ownership interest in an asset after subtracting any liabilities associated with it; it is not used to describe the initial sum paid upfront. Liability pertains to any financial debts or obligations a person has and does not directly correlate to the down payment itself. An asset is something of value or a resource owned by an individual, which could include the property being financed, but does not specifically indicate the funds available for a down payment.