ToolsSource: Inman
Zillow Home Loans fronts FHA down payments (0% second loan, 43 states)
Original headline: “Zillow’s newest pitch to buyers: We’ll front your down payment” — Inman, Oct 28, 2026
Inman’s Nick Pipitone reports (Oct. 28, 2026) that Zillow Home Loans launched down payment assistance for eligible FHA buyers: a second loan of up to 3.5% of the purchase price (covering the full FHA minimum down payment) with 0% interest and no monthly payment, available in 43 states and Washington, D.C., but not Arizona, Delaware, Florida, Massachusetts, New York, Rhode Island or Virginia. The second loan is forgiven after five years of owner occupancy and on-time primary-mortgage payments, and comes due in full if the buyer sells, moves out or refinances earlier; buyers need a 640 minimum credit score, must qualify for the full monthly payment under standard underwriting, and must get the FHA mortgage through Zillow Home Loans (FHA mortgage insurance and a standard primary rate still apply). Zillow SVP/GM of mortgages Eric Wilson said buyers and agents cite the down payment as the hurdle, and Inman frames the product as another step in Zillow’s push to keep find → agent → finance inside its stack; Zillow’s own survey of more than 57,000 buyers found 70% used savings for a down payment.
Our take (opinion & analysis, not reporting)
For US agents with FHA buyers outside the seven excluded states: treat this as a Zillow Home Loans–tied option, not a free grant — walk clients through the refinance/sale clawback before year five and compare it to state/local DPA and 3%-down conventional or 0%-down VA when those fit. If your buyer found the home on Zillow, expect loan officers to pitch this; keep a CRM note on which lender is writing the file so you are not surprised at contract. Do not promise availability in AZ/DE/FL/MA/NY/RI/VA; Inman and Zillow’s release both list those carve-outs.
Online discussion: no notable public discussion found yet (checked Oct 29, 2026).