Grabbing the Opportunity for Free Money for Your Home: Secure up to $10,000 in free home funds with the swift action required by the new ‘parent’ program.
Saving up for a down payment on a home can be one of the biggest obstacles for prospective homeowners, especially first-time buyers. With rising rents, mortgages, and overall cost of living, it’s becoming increasingly difficult to save enough for that crucial down payment. However, a new opportunity from Zillow could provide up to $10,000 in free money to put towards a down payment for qualifying homebuyers.
Zillow’s new 1% Down Payment program allows eligible home buyers to pay as little as 1% down on their home purchase, with Zillow contributing an additional 2% to the down payment at closing. This means buyers only need to save 1% of the purchase price, and Zillow will gift 2% more to reach a 3% down payment. For a $300,000 home, Zillow would contribute $6,000 to bring the total down payment to $3,000 for the buyer.
This program aims to reduce one of the biggest financial barriers to homeownership by reducing the upfront costs for buyers. Zillow cites statistics showing the average rent is up over 30% since the pandemic began. Many renters are already paying monthly amounts comparable to mortgage payments, but don’t have enough saved for a large down payment. This program allows them to get into a home sooner with less money down.
For example, Zillow estimates that for a $275,000 home in Phoenix, AZ, a buyer who makes 80% of the median income would need just 11 months to save a 1% down payment. Without the program, it would take over 2 years to save a 3% down payment on the same home. Clearly, this program cuts the timeline nearly in half, allowing buyers to purchase sooner.
While $10,000 may not seem like much compared to the full purchase price of a home, that amount can make a big difference in reaching a down payment. Especially for first-time home buyers, every little bit helps when saving up enough cash to enter the housing market. With home prices increasing nationwide, having programs to assist buyers is more important than ever.
If you’re wondering whether you may qualify for Zillow’s 1% Down Payment program, here are a few key eligibility requirements:
– Must purchase a home in Arizona (the initial launch market, but Zillow plans to expand it)
– Meet income limits based on the area median income where you’re purchasing
– Have a minimum credit score of 620
– Complete a homebuyer education course
– Occupy the home as your primary residence
The program is designed for low-to-moderate income buyers who can afford monthly mortgage payments but struggle with saving a full down payment. It aims to increase accessibility to homeownership.
Zillow suggests interested buyers call 1-833-372-1449 to discuss qualifications and determine if this program suits your homebuying needs. They encourage reaching out to a Zillow Home Loans representative who can provide more details on requirements. It’s important to have a full understanding of what’s expected and ensure this program lines up with your financial situation.
For eligible buyers, this presents an incredible opportunity to get up to $10,000 gifted by Zillow to add to your own down payment savings. Even a few thousand dollars can make a difference in reaching that crucial 20% down payment threshold preferred by most lenders. It allows quicker entry into homeownership, without emptying out years of savings.
In addition to the 1% Down Payment program, Zillow provides a few other tips for preparing for a mortgage if you’re hoping to buy soon:
– Check your credit report and work to improve your credit score above 620
– Avoid large financing purchases like cars until after closing on a home
– Use a mortgage affordability calculator to estimate home prices you can qualify for
– Get pre-approved by a lender to confirm your expected loan amount
Buying a home is one of the biggest financial steps many people will take in their lives. It helps to be informed and utilize available programs and tools to smooth the process. Zillow’s new offering makes homeownership more accessible for a wider segment of buyers.
Be sure to explore the program details and qualifications to see if you could be eligible for several thousand dollars toward your next down payment. With persistence and the right resources, the dream of owning your own home could become a reality sooner than you thought possible.
Check Zillow’s Press Release here