Zillow Home Loans introduces FHA down payment assistance program
Zillow Home Loans has launched a secondary loan program to assist FHA borrowers with down payments in 43 states and the District of Columbia.
Zillow Home Loans announced a new financing initiative allowing qualified borrowers to obtain a second loan covering up to 3.5% of a property's purchase price. The program is designed to meet the minimum down payment requirements for FHA mortgages without imposing income caps or restricting eligibility to first-time homebuyers.
The secondary loan carries a 0% interest rate and requires no monthly payments. The balance is forgiven after five years, provided the borrower maintains owner occupancy and stays current on their primary mortgage. If the property is sold, refinanced, or vacated before the five-year threshold, the loan balance becomes due in full.
To qualify, applicants must possess a minimum credit score of 640 and meet standard underwriting criteria for their primary monthly mortgage payment. While the program is currently available in 43 states and Washington, D.C., it excludes residents in Arizona, Delaware, Florida, Massachusetts, New York, Vermont, and Virginia. The loans are originated by a third-party creditor rather than Zillow Home Loans itself.