FHA down payment assistance is here

FHA down payment assistance is money provided to eligible homebuyers to help cover their down payment on an FHA loan. Rather than having to save the full amount yourself, qualifying buyers receive funds — in this case through Zillow Home Loans — that can be applied directly toward your down payment at closing. It's designed to help buyers who are financially ready to own a home but need a little help getting over the upfront hurdle.

FHA loans require a minimum down payment of 3.5% of the purchase price. On a $400,000 home, that's $14,000. While that's lower than typical conventional loan requirements, it can still be a significant amount to save — which is exactly why down payment assistance exists.

Zillow Home Loans can assist with up to 3.5% of your home purchase price* through our down payment assistance program. The exact amount depends on your purchase — the higher your purchase price, the more assistance you may be eligible for. Talk to a loan officer to find out what you'd qualify for based on your specific situation.

*The lesser of the purchase price or appraised value

Not if you satisfy the program requirements for 5 years. The down payment assistance through Zillow Home Loans is structured as a forgivable loan. It's a second mortgage with no interest and no monthly payments. And if you meet the program requirements for 5 years, the full amount is forgiven, so you won't owe it back. If you sell or refinance before 5 years, it will need to be repaid. Your loan officer can explain the details based on your timeline.

The down payment assistance through Zillow Home Loans is applied specifically to your down payment, not closing costs. Closing costs are separate and typically range from 2–5% of the loan amount. Your loan officer can walk you through all the upfront costs associated with your loan so there are no surprises.

Down payment assistance is built directly into your loan process with Zillow Home Loans. It's not a separate program you have to apply for on your own or coordinate with another organization. Plan for a minimum of 21 days from rate lock to closing, which is standard for FHA loans.

Zillow Home Loans’ down payment assistance program is available in most U.S. states, excluding Arizona, Delaware, Florida, Massachusetts, New York, Rhode Island and Virginia. Program availability depends on where Zillow Home Loans and our lending partner are licensed to operate in this manner.

Not exactly — but it can feel similar. A grant is money you never have to repay. Zillow Home Loans’ down payment assistance is structured as a forgivable loan, meaning as long as you stay in your home for 5 years and meet the program requirements, it's forgiven entirely.

Yes. While many DPA programs are limited to first-time buyers, Zillow Home Loans' program is available to eligible buyers regardless of whether you've owned a home before, as long as you meet the FHA and program credit and income requirements.