Zillow — yes, the website you use to scroll houses at midnight — now offers to cover your entire FHA down payment. Zillow Home Loans launched this program on October 28, 2026, and it works right here in Maryland and in Washington, DC. Before you get too excited, though, there are some real catches you need to know about. Maryland REALTOR® Ronnie Gilmer of Samson Properties breaks it all down so you can decide whether Zillow's offer beats what Maryland's own programs already provide.
What Zillow Home Loans Actually Launched
Zillow Home Loans is offering a second loan of up to 3.5% of the purchase price or the appraised value — whichever is lower. That amount is exactly what FHA requires as a minimum down payment, so if you qualify, you could walk into a home without bringing any down payment money out of your own pocket.
Zillow describes this second loan as carrying no interest and no monthly payments. But here is the part people miss: it is not free money. It is a forgivable loan, which means it is only wiped away after you have lived in the home for five years and made your payments on time. If you sell, refinance, or move out before that five-year mark, you owe the full amount back.
Who May Qualify
According to the program details Ronnie covers in the video, here is what Zillow is looking for:
- Minimum 640 credit score
- No income cap — but you still have to qualify for the FHA loan itself
- Repeat buyers are welcome — you do not have to be a first-time buyer
- The property must be in Maryland or Washington, DC (Virginia is not included)
That no-income-cap piece is interesting. Many down payment programs cut you off if you earn above a certain amount. Zillow's program skips that rule, which could make it useful for moderate-to-higher earners who still struggle to save a down payment.
The Catches You Need to Know
Ronnie lays out three big catches, and they matter a lot.
Catch 1: You Must Use Zillow Home Loans
To get this assistance, Zillow Home Loans has to be the lender making your FHA loan. You cannot take the assistance and shop your mortgage to another lender. That limits your ability to compare rates and terms the way you normally would.
Catch 2: The Five-Year Rule and the Refinance Trap
The loan is only forgiven after five full years of living in the home and paying on time. If you need to refinance — say, to get a lower interest rate — that triggers repayment of the full assistance amount. Moving or selling before five years does the same thing. This is a real consideration if you think your life might change in the next few years.
Catch 3: Mortgage Insurance and Closing Costs
An FHA loan comes with mortgage insurance, which adds to your monthly payment. The Zillow assistance also does not cover closing costs. Ronnie points out, though, that seller-paid closing costs could help close that gap and get you closer to zero out of pocket overall. It is worth asking your agent to negotiate that when you write an offer.
Zillow vs. the Maryland Mortgage Program
This is where things get especially important for Maryland buyers. The Maryland Mortgage Program (MMP) is the state's own down payment assistance program, and as Ronnie explains it, right now it appears to be one or the other — you likely cannot stack Zillow's assistance on top of MMP benefits.
The Maryland Mortgage Program works through a network of approved lenders listed in the MMP lender directory. Because Zillow's program requires you to use Zillow Home Loans, you would be stepping outside that MMP network. If MMP's terms are a better fit for your income and situation, that program may still win. Ronnie encourages buyers to compare both before committing.
Zillow vs. DC Programs
For Washington, DC buyers, Ronnie also compares Zillow's offer against several local programs: DC Open Doors, HomeAdvantage DC, and the DC Home Purchase Assistance Program (HPAP). DC has some of the most generous assistance available anywhere in the country, and HPAP in particular can provide substantial help for income-qualifying buyers. Again, the same principle applies — you will want to compare what each program actually offers for your specific situation before deciding.
Who Zillow's Program Fits Best
Based on the video, Zillow's down payment assistance may be a good fit if:
- You have a 640 or higher credit score
- Your income is above the limits for Maryland or DC programs, so other assistance is not available to you
- You are confident you will stay in the home for at least five years
- You are comfortable working exclusively with Zillow Home Loans for your mortgage
It may be a harder fit if you want the freedom to shop lenders, plan to refinance soon, or qualify for a state or local program that offers more generous or flexible terms.
4 Questions to Ask Zillow Before You Sign Anything
Ronnie suggests asking Zillow Home Loans these questions directly:
- What is the interest rate and APR on the FHA loan you are offering me today?
- What are the total closing costs?
- What exactly triggers repayment of the second loan?
- What happens to the second loan if I need to refinance before five years?
Getting clear answers in writing — especially a Loan Estimate — before you commit is always smart.
Frequently Asked Questions
Is Zillow's down payment assistance available in Virginia?
No. According to the video, the program works in Maryland and Washington, DC, but Virginia is not included.
Is the Zillow down payment assistance a grant?
No. It is a forgivable second loan, not a grant or gift. It is only forgiven after five years of living in the home and paying on time. If you sell, refinance, or move before five years, you repay the full amount.
Do I have to be a first-time buyer to use Zillow's program?
No. The program is open to repeat buyers as well, which sets it apart from many other assistance programs that require you to be a first-time buyer.
Can I combine Zillow's assistance with the Maryland Mortgage Program?
Based on the video, as currently structured, it appears to be one or the other. Because Zillow requires you to use Zillow Home Loans, you would be outside the MMP lender network. Verify current terms with both programs directly.
Ready to See Which Maryland Programs You Qualify For?
Zillow's new program is worth knowing about, but it is just one option on the table. Maryland and DC have their own strong programs, and the best one for you depends on your income, credit, how long you plan to stay, and other factors only a full review can reveal. Take a few minutes to see which Maryland programs you qualify for — it is free and there is no pressure. You can also call or text Ronnie Gilmer directly at (301) 835-1810 or email Listwithronnie@gmail.com. Ronnie works with buyers whichever lender they choose.
This article is for education only and is not financial or legal advice. Program details change; verify with the program administrator. Not affiliated with any government agency or the Maryland Mortgage Program.