💰One percent down loans increase accessibility to homeownership by reducing the upfront costs.
📄Zillow and other companies offer one percent down loans, but restrictions and eligibility criteria apply.
💵Closing costs and the need for additional savings should be considered despite the low down payment.
🌐No money down loans have been available for certain areas and income levels for years.
🏠The impact of one percent down loans on the housing market is expected to be minimal.
Who qualifies for one percent down loans?
—Eligibility varies but often requires a low income level and being a first-time home buyer.
Are there any restrictions on where these loans can be used?
—Yes, currently, Zillow's program is a pilot available in Arizona. Other companies may offer more widespread options.
What are the risks of one percent down loans?
—This loan type increases monthly mortgage payments, limits selling options, and may require additional funds for closing costs.
Are there alternative programs that require no money down?
—Yes, programs like USDA loans and VA loans offer no money down options with specific eligibility requirements.
What impact will these loans have on the housing market?
—The impact is expected to be minimal as the availability of one percent down loans is limited, and other loan options have similar terms.
00:00The housing market now offers one percent down loans, making homeownership more accessible.
02:42Zillow and other companies provide these loans, but eligibility and location restrictions apply.
04:42Closing costs and the need for additional savings should be considered despite the low down payment.
06:42No money down loans have been available for certain areas and income levels for years.
07:56The impact of one percent down loans on the housing market is expected to be minimal.
