Does Zillow's Down Payment Program Work in New York and What Can Staten Island and Brooklyn Buyers Use Instead?

According to Zillow's October 28, 2026 announcement, Zillow Home Loans will cover up to 3.5 percent of the purchase price or appraised value, whichever is lower, which is the full FHA minimum down payment for an eligible buyer. The program is available in 43 states and Washington, D.C., but not in New York.

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What is the Zillow Home Loans down payment program?

According to Zillow's October 28, 2026 announcement, Zillow Home Loans will cover up to 3.5 percent of the purchase price or appraised value, whichever is lower, which equals the full FHA minimum down payment. It works as a second loan with 0 percent interest and no monthly payment. The loan is forgiven after 5 years of on time payments on the primary mortgage if the buyer keeps the home as a primary residence.

Who qualifies for the Zillow down payment assistance?

The requirements are a minimum 640 credit score, an FHA loan through Zillow Home Loans, a primary residence purchase, and qualifying for the full monthly payment under standard underwriting. There is no income cap and no first time buyer requirement, which makes it broader than many assistance programs.

What is the fine print on the Zillow program?

Buyers must use Zillow Home Loans for the mortgage, so they are not freely shopping the loan itself. If a buyer sells, moves out, or refinances before year 5, the assistance loan must be repaid in full. FHA mortgage insurance still applies, and the primary FHA loan carries a standard interest rate and monthly payment. For a buyer who has good credit but limited cash, the program removes a real barrier. For a buyer who may sell or refinance within 5 years, the repayment rule can offset the benefit.

Is the Zillow down payment program available in New York?

No. The program is available in 43 states and Washington, D.C., and New York is one of only 7 states excluded. For buyers in Staten Island and Brooklyn, this specific program does not apply, even though the national headlines make it sound like a game changer.

What can New York buyers use instead of the Zillow program?

SONYMA, the State of New York Mortgage Agency, offers down payment and closing cost assistance tied to its loan programs. New York City's HomeFirst program offers up to 100,000 dollars in down payment assistance for eligible buyers. Many buyers do not realize these local programs exist, and a knowledgeable local lender can quickly tell you which ones you may qualify for.

What does the Zillow announcement mean for Staten Island and Brooklyn buyers?

It means a national headline should not be treated as a local option. A Staten Island or Brooklyn buyer short on cash should skip the Zillow program and ask a local lender about SONYMA and HomeFirst instead, since eligibility rules, income limits, and terms differ for each. This is general information, not financial advice. Eligibility, terms, and program availability change, so confirm details with a licensed lender for your specific situation.

Questions about how this affects your home in Staten Island or Brooklyn? Work with Joseph Ranola, or text or call (917) 905-2541. New episodes of Daily Tesla News break down the NYC real estate stories that move the market.