Down payment assistance cuts time to save by 18 months

Zillow Research reported on October 28 that a 3.5% down payment assistance boost allows a typical buyer to save for a 10% down payment 35% faster. According to Zillow Research, saving a 10% down payment on a typical United States home currently takes a median household about 4.2 years, or four years and two months. The assistance reduces that timeline by 18 months. [1]

Zillow Research reported that receiving 3.5% in assistance cuts a typical buyer's mortgage payments by $1,080 a year. This reduction makes approximately 26,300 additional active listings affordable across the nation. For these figures, Zillow Research assumed the home buyer receives an FHA loan and contributes 10% down in total. [1]

In a separate report, RISMedia reported that Zillow Home Loans launched a down payment assistance program for eligible FHA buyers across 43 states and Washington, D.C. According to RISMedia, qualified buyers can receive up to 3.5% of the purchase price as a second loan with no interest and no monthly payment, which covers the full FHA minimum down payment requirement. [1][2]

UrbanTurf also reported on October 28 that down payment assistance could cut saving times for home buyers in Washington, D.C. by a year and a half. These assistance initiatives aim to expand purchasing capacity as home buyer affordability remains a primary market focus. [1][8]