Current:Home > NewsZillow offers 1% down payment to attract more homebuyers -RiskWatch
Zillow offers 1% down payment to attract more homebuyers
View
Date:2025-04-18 19:04:25
Real estate marketplace Zillow has launched a new program to help people who want to buy homes but are being squeezed out of the market by a surge in interest rates.
Zillow Home Loans is offering mortgages with a 1% down payment option for eligible homebuyers looking to own property in Arizona, and will contribute an additional 2% at closing, the company said Thursday. It also plans to expand the program to other markets.
"For those who can afford higher rent payments but have been held back by the upfront costs associated with homeownership, down payment assistance can help to lower the barrier to entry and make the dream of owning a home a reality," Zillow Home Loans' senior macroeconomist Orphe Divounguy said in a statement.
The program will reduce the time it would ordinarily take to save for a down payment, according to Zillow.
"The rapid rise in rents and home values means many renters who are already paying high monthly housing costs may not have enough saved up for a large down payment, and these types of programs are welcome innovations in lowering the potential barriers to homeownership for those who qualify," Divounguy said.
- What if mortgage interest rates don't fall?
- The Fed raised interest rates again — here's what to expect for mortgages
- How high will mortgage rates climb? Experts weigh in
On Wednesday, mortgage rates surged to their highest level since 2000. The average rate on a conventional 30-year fixed-rate mortgage jumped to 7.31% last week, up from 7.16% the previous week, according to The Mortgage Bankers Association (MBA).
As a result, many aspiring homeowners are being sidelined, driving mortgage applications down to a 28-year-low, according to the MBA.
veryGood! (3827)
Related
- EU countries double down on a halt to Syrian asylum claims but will not yet send people back
- Jena Malone Says She Was Sexually Assaulted While Filming Final Hunger Games
- Why Daisy Jones and The Six's Sam Claflin and His Male Co-Stars Were Completely Covered in Makeup
- Transcript: Rep. Patrick McHenry on Face the Nation, March 19, 2023
- Cincinnati Bengals quarterback Joe Burrow owns a $3 million Batmobile Tumbler
- Polar explorer, once diagnosed with terminal cancer, still lives for adventure
- Saudi Arabia frees American imprisoned over tweets criticizing kingdom's crown prince, American's son says
- Aubrey O'Day Shares She Suffered a Miscarriage
- North Carolina trustees approve Bill Belichick’s deal ahead of introductory news conference
- As Congress eyes a TikTok ban, what could happen to the social media platform?
Ranking
- 'Malcolm in the Middle’ to return with new episodes featuring Frankie Muniz
- Transcript: Neel Kashkari on Face the Nation, March 26, 2023
- Inside a Ukrainian orphanage where American donations are helping build a new life for vulnerable kids
- Tom Sizemore Dead at 61 After Suffering Brain Aneurysm
- The Louvre will be renovated and the 'Mona Lisa' will have her own room
- Hoda Kotb Returns to Today After 3-Year-Old Daughter Hope Is Discharged From Hospital
- Get $128 J.Crew Jeans for $28, $278 Boots for $45, and More Jaw-Dropping Deals
- Camila Morrone and Suki Waterhouse Detail How Daisy Jones and The Six Forged Their Friendship
Recommendation
Don't let hackers fool you with a 'scam
12 Self-Care Products You Need If Your Spring Break Is Filled With Fun In The Sun
Cher Reveals She's Working on New Music With Boyfriend Alexander Edwards
Jay Leno Reveals His Brand New Face After Car Fire
Elon Musk's skyrocketing net worth: He's the first person with over $400 billion
HSN's Shannon Smith and Shannon Fox Exit Network
14 Fashionable Finds From H&M That Look Double the Price
In France, some protests against increased retirement age turn violent