Is Zillow Home Loans Legit? Uncovering the Truth

These Zillow Home Loans provides different types of mortgages and refinancing options, along with discounts.

However, it doesn’t have physical branches and its interest rates may not be as good as other lenders.

Also, it doesn’t offer USDA loans or home equity products.

Is Zillow Home Loans Legit?

Discover the truth about Zillow Home Loans.

Learn about its mortgage and refinancing options, discounts, and limitations.

Find out if it’s a legitimate choice for your home financing needs.

An Image of Zillow Home Loans Website
Is Zillow Home Loans Legit?

What Zillow Home Loans Offers

Zillow Home Loans offers mortgages for different periods, like 10, 15, 20, 25, and 30 years, depending on the loan type.

They’re licensed in all states except New York and offer standard home purchase and refinance loans, but you need to contact a loan officer for rates.

Home Purchase Loan Options

Zillow Home Loans provides different types of mortgages, including conventional, FHA, VA, and jumbo loans up to $2 million.

Here are the minimum credit score and down payment requirements for each loan type.

Options Min. Credit Score Min. Down Payment
Conventional
620
3%
FHA
620
3%
VA
620
0%
Jumbo
700
20%

With an FHA loan, you can put less than 20% down, but you’ll have to pay monthly mortgage insurance premiums for the entire loan term.

Zillow Home Loans also offers conventional adjustable-rate mortgages (ARMs) in 7/6 and 10/6 options.

Refinancing Loan Options

Zillow Home Loans offers streamlined refinancing options like Fannie Mae’s RefiNow, FHA Streamline Refinance, and VA Streamline Refinance.

Zillow Home Loans’ Minimum Qualifications

These loans need a credit score of at least 620 for most loans, except for jumbo mortgages, which need a score of 700 or more.

The lender usually allows a maximum DTI of 45%.

Down payments range from 3% for conventional and FHA mortgages to 20% for jumbo mortgages.

VA mortgages don’t need a down payment, and sometimes closing costs can be added to the mortgage.

Loan Costs and Fees

For purchase mortgages, Zillow Home Loans charges a fee of $1,500 for conventional, FHA, and jumbo mortgages, and $499 for VA loans.

For refinances, the fees are the same.

Zillow Home Loans offers discounts, including an average savings of $7,140 when customers sell and buy with one of its local partner agents and finance through Zillow Home Loans.

This includes a 1.5% rebate from Zillow, $1,500 in closing credits, and a team of loan officers and local expert agents.

How to Apply for a Zillow Home Loans Mortgage

To apply for a Zillow Home Loans mortgage, you can start the process on their website.

After that, you’ll need to talk to a loan officer to finish the application and get preapproval.

Once approved, you’ll receive a preapproval letter, which can be sent within minutes but usually takes about an hour.

To apply, you’ll need your most recent month’s pay stub, W-2 forms for the last year of your employment (the requirements vary by loan type), bank and investment account statements from the last two months (if assets are needed), a signed home purchase contract, and your most recent two years of tax returns.

Is Zillow Home Loans Legit?

Zillow Home Loans has an A+ rating from the BBB and a 3.84 out of 5 star rating.

On Trustpilot, it has 4 out of 5 stars from 40 reviews.

Some complaints mention delays in closing and payment issues, but positive reviews praise the helpful customer service.

Pros

  • Offers a wide range of mortgage choices.
  • Provides discounts for working with Zillow agents.
  • Has easy minimum qualifications.

Cons

  • Doesn’t display rates online.
  • Doesn’t use other information for credit checks.
  • Doesn’t offer home equity loans or lines of credit.

Conclusion

Zillow Home Loans provides different types of mortgages and refinancing options, along with discounts for working with their agents.

However, it doesn’t have physical branches and its interest rates may not be as good as other lenders.

Also, it doesn’t offer USDA loans or home equity products.

Whether Zillow Home Loans is a legitimate choice for your home financing needs depends on your specific requirements and preferences.

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