Zillow Home Loans, LLC

After reading customer reviews and comparing Zillow Home Loans to the Home Mortgage Disclosure Act (HMDA) data, we concluded that it is a good choice for first-time homebuyers or refinance borrowers with non-complicated purchases. Those who are tech-savvy will appreciate the streamlined, online process.

We do not recommend Zillow Home Loans for other loan types, such as a VA loan or an FHA loan, since we do not have enough information on whether our reviewers had a seamless experience like with a conventional loan. Additionally, we do not recommend this lender for individuals with lower-than-average credit scores or complicated finances since many of our reviewers had issues with Zillow Home Loans’ requirements.

We rated the Zillow Home Loans application process as excellent since many reviewers found the process to be easy and fast.

Despite some reviewers praising Zillow Home Loans for its rates and fees, we could not give an excellent rating to the lender for these features. That’s because its lack of transparency on its website can make it difficult for a buyer to find the information before requesting a quote.

Finally, we rated Zillow Home Loans’ requirements as fair since they are not clearly disclosed on its site. More than one buyer said they were preapproved through Zillow Home Loans only to be denied a loan after wasting time, money and effort to submit all their paperwork.

Zillow Home Loans does not publish rates on its website. To get an idea of what rates you qualify for, you need to answer a handful of questions on the Zillow Home Loans website. Alternatively, you can call to speak with a loan officer. Zillow Home Loans lists credit score and down payment amount as two factors that influence your interest rate.

Even though Zillow Home Loans doesn’t post current rates, we know from Home Mortgage Disclosure Act (HMDA) data that its average home purchase loan rate from 2019 to 2021 was around the national average. In 2021, it was 0.04% lower; in 2019 and 2020, it was slightly above.

Several reviewers mentioned Zillow’s rates were “competitive” and that they received a better rate with Zillow than a competitor. Kenny from California said, “The rate is a better one as compared to the other loan company I applied at the same time and was very competitive when I did research online.”

Zillow Home Loans average home purchase rate vs. national average

You can start the application process by answering questions on the Zillow Home Loans website.

First, you indicate whether you are purchasing a home or refinancing your mortgage. Then, answer a few questions and enter your contact information. If you’re buying, you’ll be asked about your timeline, where you’re planning to live, the kind of property, the property price and your down payment amount. If you’re refinancing, you should know your approximate property value and your remaining mortgage balance.

After you complete the questionnaire, you’ll be connected to a Zillow Home Loans loan officer to continue the process.

Ericka, a ConsumerAffairs reviewer from Georgia, said about refinancing with Zillow Home Loans: “I had no idea Zillow offered home loans but I'm sure glad I found out! This was my first experience refinancing my home loan and Zillow's staff was outstanding! At each and every step in the process I was impressed: from the initial call … to the knowledgeable, friendly and non-pressure approach. … Every question was answered by the incredible staff. The whole process from first call to completion took 21 days!”

A first-time homebuyer in North Carolina shared a similarly smooth experience, saying, “The entire process, from application to final approval, closing, funding, the Zillow loan team made sure my best interests and financial scenarios were pursued and achieved, efficiently and painlessly.”

Zillow Home Loans application features

Zillow Home Loans lists conventional loans, FHA loans and VA loans as its main options for borrowers. Its conventional loans have 15-, 20- or 30-year terms. VA loans and FHA loans have 15- or 30-year terms.

In 2021, Zillow Home Loans received 4,955 home purchase loan applications. According to HMDA data, 3,359 turned into closed loans; the lender denied 131 (2.6%) applications.

While Zillow Home Loans offers conventional, VA and FHA loans, we rated the loan types as good because it does not offer USDA loans. We also found its site limited in information about the different loan types.

Most of our reviewers are first-time homebuyers or refinance borrowers, so there are no reviews on how the VA or FHA loan process went. 

Loan applications for home purchases only by year

Zillow Home Loans provides refinance loans that help borrowers get a better rate, change their loan term or get cash out of their home equity.

In 2020 and 2021, like many lenders, Zillow Home Loans experienced a surge in demand for refinancing; the percentage of loans for refinancing increased from 13% in 2019 to 65% in 2020 to 74% in 2021. This trend occurred as mortgage rates declined to record lows. According to Freddie Mac, the average rate on a 30-year fixed-rate mortgage fell below 3% starting in August 2020 and stayed at or below 3.1% all the way through the end of 2021.

That trend is not likely to continue. In 2022, the average rate on 30-year fixed-rate mortgages has risen above 5% for the first time since 2010, so fewer homeowners are expected to seek refinancing.

Home purchase vs. refinance loans by year

Zillow Home Loans does not disclose specific borrower requirements for its loans. To learn which loans you qualify for and how much you can borrow, you can answer questions on its website or call to speak with a loan officer.

Lenders typically require an applicant to have at least a 620 credit score and a 3% down payment to qualify for a conventional loan. FHA loan requirements can vary — some lenders allow credit scores as low as 500, while others may not accept lower than 580. Minimum down payments on FHA loans range from 3.5% to 10%. VA loan requirements can also differ, but you typically need a credit score of 580 to qualify. This type of loan allows for 100% financing, which means there is no down payment requirement.

A first-time homebuyer in Texas had issues with Zillow Home Loans’ requirements, saying, “[The loan officer] told my husband that his debt to income ratio was slightly high and need to clear his credit cards and get gift money for the down payment to be within the qualification limit.”

Because of this, they paid off a $3,000 credit card and wired gift money, but it wasn’t enough. “One week later and our closing date pushed back, we were told they were still waiting for his W2 because my husband’s pay stubs did not match what he stated to them,” they said. “He is not making enough money to qualify for the house. We were confused as to why they pre-approved him in the first place.”

Zillow Home Loans does not list the lender fees it charges for new loans. After you apply, it will provide you with a Loan Estimate, a form that gives estimated costs and fees of your loan. These will include closing costs, which are typically 2% to 5% of the loan amount. At least three business days before your loan closing date, Zillow Home Loans will send a Closing Disclosure with final loan costs, including how much you need to pay at closing.

Many of our reviewers were happy that Zillow Home Loans did not have hidden or sudden fees during the process. One reviewer who had done five to six refinances in the past 40 years said their experience with Zillow Home Loans was the best.

“We had our closing 11 days after submitting an application. And, while the interest rate was virtually the same between companies, Zillow had no upfront fee to process the loan. And, we had no need for an appraisal as Zillow waived the appraisal,” they said.

Even though several reviewers mentioned the fees and closing costs were low, we rated Zillow Home Loans as good because of the lack of information published on its site.

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