Zillow Home Loans on Wednesday launched a down payment assistance program for eligible FHA borrowers in 43 states and Washington, D.C. The program offers a second, forgivable loan of up to 3.5% of the purchase price to cover the minimum down payment. Borrowers must meet credit score and occupancy requirements, and the loan is forgiven after five years of on-time payments on the primary mortgage.
Zillow Home Loans' new down payment assistance program aims to reduce upfront homebuying costs for eligible FHA borrowers, potentially enabling more individuals to purchase homes by covering the full minimum down payment.
Zillow Home Loans has introduced a new down payment assistance (DPA) program designed to help eligible homebuyers using Federal Housing Administration (FHA) loans. Available in 43 states and Washington, D.C., the program provides a second loan covering up to 3.5% of the home's purchase price. This secondary loan is interest-free and forgivable after five years, provided the borrower maintains on-time payments on their primary mortgage and continues to occupy the home. The program does not have an income cap or a first-time homebuyer requirement, but borrowers need a minimum credit score of 640 and must qualify for the primary mortgage payment. The program is not available in Arizona, Delaware, Florida, Massachusetts, New York, Rhode Island, or Virginia. Eric Wilson, Zillow's senior vice president and general manager of mortgages, stated that the program aims to simplify the homebuying process by covering the full minimum down payment for qualified buyers who can afford the monthly mortgage payments.
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