Zillow to offer a 1% down payment loan program For buyers facing affordability Issues

[havoc00]

For buyers facing affordability challenges getting into a home of their own, Zillow Home Loans is rolling out a new option: a 1% down payment.

Through the program, an eligible buyer pays as little as 1% toward a down payment. Zillow Home Loans pays an additional 2%, bringing the total down payment to 3%, which is typically the minimum payment required for a conventional home loan.

The 2% is paid through closing costs and not as a payment to the borrower. Currently the program is only available to buyers in Arizona, according to Zillow, with plans to expand.

Home buying is the least affordable it has been in nearly 40 years. With mortgage rates crossing over 7% in recent weeks and home prices rising, home sales have plummeted over the past year. Prices are staying high because inventory remains stubbornly low as climbing mortgage rates are keeping people who have ultra-low interest rates from wanting to sell.

As a result, the mortgage industry has taken a hit. Mortgage applications were at a 28-year low last week, according to the Mortgage Bankers Association.

Zillow has not been immune. The company reported that revenue from its mortgage business was $24 million, down 17% year over year, according to its earnings for the second quarter.

Visits to Zillow’s mobile apps and websites have dropped recently, too, with 2.7 billion visits in the second quarter, down 8% compared to a year earlier.

https://www.cnn.com/2023/08/25/homes...oan/index.html

[leoaa777]

Home prices about to shoot up

[cobhc]

This article isn't very "havoc"

[multiplemiggs]

1% down
350 years to pay

[havoc00]

This article isn't very "havoc"

[rocketfish]

For buyers facing affordability challenges getting into a home of their own, Zillow Home Loans is rolling out a new option: a 1% down payment.

Through the program, an eligible buyer pays as little as 1% toward a down payment. Zillow Home Loans pays an additional 2%, bringing the total down payment to 3%, which is typically the minimum payment required for a conventional home loan.

The 2% is paid through closing costs and not as a payment to the borrower. Currently the program is only available to buyers in Arizona, according to Zillow, with plans to expand.

Home buying is the least affordable it has been in nearly 40 years. With mortgage rates crossing over 7% in recent weeks and home prices rising, home sales have plummeted over the past year. Prices are staying high because inventory remains stubbornly low as climbing mortgage rates are keeping people who have ultra-low interest rates from wanting to sell.

As a result, the mortgage industry has taken a hit. Mortgage applications were at a 28-year low last week, according to the Mortgage Bankers Association.

Zillow has not been immune. The company reported that revenue from its mortgage business was $24 million, down 17% year over year, according to its earnings for the second quarter.

Visits to Zillow’s mobile apps and websites have dropped recently, too, with 2.7 billion visits in the second quarter, down 8% compared to a year earlier.

https://www.cnn.com/2023/08/25/homes...oan/index.html

homes like 700k, if you put 1% down and a 7-8% mortgage rate you are just asking to get fuked in the monthly payments.

[OffwhiteBrah]

1% down with 20% interest on a 80 year mortgage. Sounds fantastic

[havoc00]

1% down with 20% interest on a 80 year mortgage. Sounds fantastic

sad!

[tripod29]

Great idea!

[helpmee]

That is the opposite lol
The issue with interest rates in the monthly price goes up
1% down just means a higher DTI
To fix the issue you would force a higher downpayment

[havoc00]

Great idea!

Thanks!

[dingler]

Going to be massive carnage when home values tank and everyone without solid equity ends up owing the banks hundreds of thousands of dollars. Homes will be foreclosed, massive debt will be accrued and chaos will ensue. Corporations will come in and buy up the inventory and drive home prices and property taxes through the roof.

[yabbayabba]

Going to be massive carnage when home values tank and everyone without solid equity ends up owing the banks hundreds of thousands of dollars. Homes will be foreclosed, massive debt will be accrued and chaos will ensue. Corporations will come in and buy up the inventory and drive home prices and property taxes through the roof.

The property tax thing is what concerns me. You'll find out how fast you don't actually own your house once you can't pay the $50k+/year in taxes if they keep going up from inflated home values.

[ymer]

Gotta keep the ball rolling, can't let the markets and economy fix themselves.

[pondus_levo]

The property tax thing is what concerns me. You'll find out how fast you don't actually own your house once you can't pay the $50k+/year in taxes if they keep going up from inflated home values.

$50k+/year?

UWOT mate?

[havoc00]

$50k+/year?

UWOT mate?

And I thought nj was bad at like 7k

[pondus_levo]

And I thought nj was bad at like 7k

Yeah, I pay like $7500/year.

I guess Yabba can afford a $50 million house.

https://www.rocketmortgage.com/learn...taxes-by-state

[WoofieNugget]

Only person winning there is Zillow Home Loans and they are going to make bank off a lot of stupid people. I guess they have a way to give mortgages? Thought you had to be a registered bank in the US for that.

No different than auto lenders who give you an eight year loan just to make the payments whatever you can afford.

[Jasonw1178]

The additional down payment is paid at closing cost but does not go towards the borrower's balance. Sounds like a bank fee. No doubt high PMI rates.

Kind of like someone I know who was getting into this rent to own thing on a house. Paying high rent, and then some additional which goes towards a down payment. However, if the value of the home goes up the sale price does as well. I may have heard wrong but something about if you default they keep that money.

This is how the rich men north of Richmond get/stay rich. I'm no liberal but it's wrong how much money is made off those who have the least.

You walk in with a solid down payment of over 20% of even nicer homes and a high credit score with good lines and good income, you think they will be happy to see you and band over backwards but in reality they can't make much money off of you because you'll have options.

[nutsy54]

For buyers facing affordability challenges getting into a home of their own, Zillow Home Loans is rolling out a new option: a 1% down payment.

So... keep people in debt even longer?

How about this idea: Buy a less expensive house!

[ThaNextLevel]

How about this idea: Buy a less expensive house!

but all the cheaper homes are in the ghettos and 80+ years old. what you "save" you end up losing to much higher maintence/utilities

[ThatGuy950]

The goal is to get shaniqua and her 19 welfare babies into white neighborhoods to run them out of town and ruin property values, like in Robocop

[yabbayabba]

$50k+/year?

UWOT mate?

Hypothetical tax in the future when everything in way more overvalued then it is now. Since most property taxes are based on home value the more everything continues to rise so will property taxes. May get to a point that even though your house is paid for you won't be able to pay your taxes to keep it.

[r32gojirra]

Welp, guess it’s been 15 years

Everyone must have forgot

Andherewego.exe

[AWSbruh]

This **** won’t help lol. Most people won’t be able to qualify for a decent house when the starting home for something entry level is 500k

[r32gojirra]

This **** won’t help lol. Most people won’t be able to qualify for a decent house when the starting home for something entry level is 500k

Lmao that’s not how this works

That’s not how this works at all

[hendrixfreak70]

It is now a good time to remind the Rentards that you have about six days. DON'T BE LATE like last month.

[AWSbruh]

Lmao that’s not how this works

That’s not how this works at all

You live in Australia Lmao. In the United States you ain’t qualifying for a 500k house unless you have the income to qualify. I’m not even including the debt to income ratio

[Redfish225]

FHA loan would be better, zero down, lowest interest rate going.

[r32gojirra]

You live in Australia Lmao. In the United States you ain’t qualifying for a 500k house unless you have the income to qualify. I’m not even including the debt to income ratio

Lmao

Yes we actually have prudential regulation

You can google what that means

Which is why our major financial institutions didn’t collapse in 2008

How did you guys go