Zillow has launched a partnership with Down Payment Resource to help people find ways to make homeownership more affordable, particularly for first-time buyers.
The online real estate platform said on Thursday (Dec. 16) that its home listings now include information about potential down payment assistance programs. Prospective buyers can input information that is run through the Down Payment Resource database, which then produces a list of programs.
“We want everyone to have access to resources that can help overcome common barriers to homeownership, like the difficulty of saving for a down payment, which is especially challenging within underrepresented communities,” said Grace Chung, Zillow’s director of social impact, in the press release. “Down payment assistance programs provide a viable pathway to homeownership, which can help build generational wealth and economic opportunity for many that may not have been able to imagine it for themselves. Information is power, and Zillow is proud to partner with Down Payment Resource to shed more light on these important programs.”
Zillow says rising home prices have made it increasingly difficult for potential buyers to come up with the money for a down payment.
Read more: Zillow’s House-Flipping Pause Opens Door to Competitors
Earlier this year, the company announced it was stepping back from its home acquisition strategy due to a glut of housing inventory, and would instead refer sellers to its local Premier Agent partners.
“We’re operating within a labor- and supply-constrained economy inside a competitive real estate market, especially in the construction, renovation and closing spaces,” Jeremy Wacksman, Zillow’s chief operating officer, said in October. “We have not been exempt from these market and capacity issues, and we now have an operational backlog for renovations and closings.”
Zillow points to its in-house research, which shows that two-thirds of buyers said the down payment was a barrier to homeownership. First-time homebuyers should now plan on taking an extra year to save up for a down payment than they would have needed five years ago.
And many buyers may not be aware of the programs available to assist with down payments, closing costs and taxes, Zillow said. Every country in America has at least one assistance program, and nearly half have 10 or more. All told, the average benefit of one of these programs is $17,000, according to Down Payment Resource’s analysis.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More