The minimum down payment requirement for a conventional home loan is 3%, and sometimes that minimum requirement can cause a strain on eligible buyers. Zillow is now offering residents of Arizona a pilot program that allows eligible homebuyers to purchase a home with just a 1% down payment.
Zillow will then add 2% to help make the buyer’s down payment a total of 3%. Buyers also have the option of providing the 3% themselves, and Zillow will still add an additional 2% to help increase the down payment amount to 5%. Zillow’s 2% contribution will be applied towards the closing costs, not as a payment to the potential homebuyer.
Currently in a testing phase and only being offered to Arizona residents, Zillow hopes to be able to expand and offer the service to other potential homebuyers nationwide.