How does Zillow's FHA down payment loan compare with Long Island programs?
Zillow's new FHA down payment loan does not apply here, so Long Island buyers should look at the local programs instead.
Zillow Home Loans launched a down payment assistance program on October 28, 2026 for buyers who finance an FHA loan through Zillow Home Loans. New York is one of the states left out. Zillow's own announcement lists the states where the program is not available, and New York is on that list, along with Arizona, Delaware, Florida, Massachusetts, Vermont and Virginia. So a Nassau or Suffolk buyer cannot use this specific product no matter how good it sounds.
What Zillow is actually offering, where it works
For buyers in the states where it is live, the math is straightforward. Eligible buyers can receive up to 3.5% of the purchase price or appraised value, whichever is lower, as a second loan with no interest and no monthly payment, which covers the standard FHA minimum down payment. Buyers can also add their own funds on top, up to a 10% down payment total, according to Zillow's program details.
The loan is not free money with no conditions. HousingWire reports that borrowers still carry the standard interest rate, monthly payment and mortgage insurance on their primary FHA loan, and the assistance requires a minimum 640 credit score and financing the purchase through Zillow Home Loans specifically. The second loan is forgiven after five years of on time payments while living in the home, and it has no income cap and no first time buyer requirement.
What is actually open to a Long Island buyer right now
Since the Zillow product is not available here, the comparison that matters is with the programs already serving Nassau and Suffolk. The Long Island Housing Partnership administers the Nassau County HOME Down Payment Assistance Program, which provides eligible first time homebuyers with up to $50,000 toward down payment and closing costs on an eligible single family home, with income eligibility and a residency requirement of fifteen years before the full amount is considered repaid.
Suffolk County runs a parallel program through the same partnership. The Suffolk County HOME Consortium funds are zero interest deferred loans, forgiven after ten years, providing up to $30,000 toward a down payment for eligible applicants.
A third option comes from Community Development Long Island. Its NYS Affordable Housing Corporation program offers a deferred loan of up to $25,000, $32,500, or $40,000 depending on family size and income, usable on a single family, co-op, condo or legal two family home in Nassau or Suffolk, with a ten year occupancy requirement.
State level help also exists through SONYMA, New York's own mortgage agency. Its standard Down Payment Assistance Loan offers a zero interest, no monthly payment second loan equal to the greater of $3,000 or 3% of the purchase price, up to $15,000, forgivable after ten years, and an enhanced version called DPAL Plus can reach up to $30,000 for down payment, closing costs or mortgage insurance for qualifying low income or veteran buyers, or those buying in a targeted area.
The practical difference
The Zillow product trades flexibility for speed. It skips a separate application to a housing agency, but it locks a buyer into one lender and one loan type, and it is not offered in New York at all. The Long Island and state programs ask for more paperwork, homebuyer education and longer residency commitments, but they offer larger dollar amounts, from $15,000 through SONYMA's standard DPAL up to $50,000 through Nassau County, and they work with the lender of the buyer's choosing.
For a first time buyer trying to close the gap between savings and a down payment, the local programs are the ones actually open for business here. Compare the current options side by side on our down payment help page before you pick a lender or a program.
If you are not sure which of these programs you would even qualify for, run your numbers through what you can afford first, or send a question over at /askmuds.