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Zillow launches FHA down payment assistance, expanding buyer eligibility nationwide

Oct 28, 2026, 6:15 AM EDT1 sourcesAI-analyzed

Why it may matterVerify against the original reporting

The program broadens the addressable market for Zillow's mortgage business, potentially increasing originations and cross-selling opportunities, which could drive near-term revenue upside and user engagement. Profitability depends on underwriting profitability and fees; geographic restrictions temper upside.

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Zillow Group's Zillow Home Loans introduces a no-interest, forgivable second loan for FHA down payments, up to 3.5% of the purchase price in 43 states and DC. By bundling mortgage financing and down payment help, Zillow aims to lift FHA loan originations, boost platform engagement, and create cross-sell opportunities across its mortgage and real estate ecosystem.

Zillow launches FHA down payment assistance.
Second loan covers up to 3.5% of purchase; 0% interest.
Forgiven after five years with on-time payments; available in 43 states + DC.
Not available in AZ, DE, FL, MA, NY, RI, or VA.
Requires 640+ credit score; primary FHA loan; owner-occupied.

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