Zillow Home Loans Launches Down Payment Assistance Program for FHA Borrowers
Zillow Home Loans has introduced a new down payment assistance program designed to help eligible buyers finance homes through FHA loans. Available in 43 states and Washington, D.C., the program provides a second loan covering up to 3.5% of the purchase price or appraised value. This secondary loan features 0% interest and requires no monthly payments, aiming to lower the barrier to entry for buyers struggling with upfront cash requirements. The assistance is structured as a forgivable loan that is canceled after five years of on-time primary mortgage payments and owner occupancy. To qualify, borrowers must have a minimum credit score of 640 and use Zillow Home Loans for their FHA financing. Unlike many traditional assistance programs, this initiative does not impose income caps or first-time homebuyer requirements, though it excludes several states including New York and Florida.
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Topics: down payment assistance FHA loans home buying mortgage products