Zillow Home Loans Review for 2024

Zillow Home Loans mortgage rates

While many mortgage lenders advertise their rates online, Zillow Home Loans isn’t as transparent. Instead, you have to speak with a loan officer for rate information.

Based on data from 2021 — the most recent figures available — the average 30-year interest rate offered by Zillow Home Loans was lower than some other major lenders.

Also, Zillow borrowers paid lower closing costs on average — about $3,700 in total loan costs and $1,500 in loan origination fees in 2021.

Average mortgage rates at major lenders

Average rate and fee data sourced from public rate and fee records required by the Home Mortgage Disclosure Act (HMDA).

Zillow Home Loans review for 2024

Home loan programs vary, so it’s important to choose the right loan for your financial situation.

The good news is that Zillow has several popular loan programs. These include government-backed mortgages like FHA and VA loans, as well as conventional loans backed by Fannie Mae or Freddie Mac.

But unfortunately, Zillow Home Loans doesn’t provide loans for everyone. The company doesn’t appear to offer adjustable-rate mortgages, reverse mortgages, jumbo loans, home equity loans, or USDA loans.

Plus, the lender isn’t yet licensed in all 50 states, which means borrowers in several states will have to find another mortgage company for a new loan.

Some borrowers might also view the lender’s lack of information on its website as a disadvantage. When shopping for a home loan, transparency about rates and requirements can point borrowers in the right direction. But unfortunately, there isn’t a lot of clarity in this area.

According to a customer representative, you must first fill out a contact form — providing your personal and financial details — then wait for a loan officer to contact you. From there, you can complete a mortgage application and ask questions.

Working with Zillow Home Loans

Although it’s an online lender, Zillow Home Loans does not have a wholly online mortgage application process.

When starting out, it can appear as if you’re completing a prequalification or preapproval application online. You’ll provide details about the type of loan you’re looking for, your timeline for buying, and personal information. But this isn’t a mortgage application. It’s only a contact form, which you must complete before proceeding.

You can’t complete a loan application or ask questions until after you’re contacted by a loan officer.

After completing an application you’re typically required to submit supporting documentation, including:

• W2s and tax returns from the previous two years
• Bank and/or retirement account statements
• A copy of your driver’s license
• Year-to-date Profit and Loss statement (if you’re self-employed)
• Gift letter, if applicable
• Other documents requested by your lender

You’ll then email or upload your supporting documentation to an online portal. Your loan officer will provide specific instructions regarding preapprovals, Loan Estimates, and closing.

You should receive a preapproval after completing your application. And once you have a signed purchase agreement, you’ll receive a Loan Estimate with your estimated loan terms.

You’ll receive a Closing Disclosure form about three days before closing. This includes your actual loan terms, including the interest rate, monthly payment, and cash needed to close.

Zillow Home Loans customer reviews

Zillow Home Loans receives mostly positive reviews from its borrowers. The company has a score of 4.1 out of 5 stars on Trustpilot.

Both refinance and home purchase borrowers spoke highly about the level of customer service and they often described their loan officers as knowledgeable and friendly.

According to customer reviews, many borrowers closed on time — sometimes within weeks — and were satisfied with their mortgage rates.

Mortgage-related complaints at major lenders

Zillow Home Loans doesn’t have a J.D. Power Satisfaction Score for 2021. However, the lender only received eight complaints to the Consumer Federal Protection Bureau in 2021. This is considerably less than the number of complaints received about some major competitors.

Mortgage loan products at Zillow Home Loans

Zillow has loan options if you’re looking for a new home purchase or a refinance of an existing mortgage.

According to the lender’s website, you can apply for several types of home loans:

• Conventional loans: These mortgages are backed by Fannie Mae and Freddie Mac. First-time home buyers will often qualify with a minimum down payment of 3% and flexible credit score requirements. Keep in mind that down payments less than 20% will require private mortgage insurance (PMI) until you reach 20% home equity
• FHA loans: These types of loans are backed by the Federal Housing Administration. They often require a minimum credit score of 580 and a minimum down payment of 3.5%. However, you’re on the hook for mortgage insurance premiums (MIP) for the life of the loan
• VA loans: These government loans are available to active-duty military members, veterans, reservists, National Guard service members, and eligible spouses. The VA doesn’t set a minimum credit score requirement, but many lenders require a minimum score of 580-620. VA home loans require no down payment, no private mortgage insurance (PMI), and have lower closing costs
• Fixed-rate mortgages (FRMs): These offer a fixed interest rate throughout the life of the loan. Zillow offers FRMs with 15-, 20-, and 30-year loan terms

Limited home loan options

Zillow doesn’t feature a wide selection of loan programs. Nevertheless, most borrowers will opt for conventional loans anyway. Further, many first-time home buyers will finance a new home with an FHA loan — both of which the lender offers.

Those in the market for a jumbo mortgage, USDA loan, or a specialty loan type will have to look elsewhere.

Additionally, Zillow doesn’t appear to offer adjustable-rate mortgages (ARMs). The rates of an ARM loan fluctuate along with the market.

Refinancing with Zillow Home Loans

Homeowners who are looking to refinance their mortgage can choose between a rate-and-term refinance or cash-out refinancing.

• Rate-and-term refinance: Exchange your original mortgage with a new one that offers loan terms that are more favorable
• Cash-out refinance: Access your home equity by replacing your current mortgage with a new, larger loan amount and receive the difference as a lump sum of cash

As with its home purchase rates, Zillow Home Loans doesn’t publish its refinance rates online. So, again, you’ll need to apply to see the best rate it can offer you.

Homeowners who want to tap their home equity without refinancing will need to look elsewhere. This underwriter doesn’t offer home equity loans or home equity lines of credit (HELOCs).

Where can I get a mortgage with Zillow Home Loans?

Zillow Home Loans, LLC is headquartered in Overland Park, Kansas. As an online lender, it doesn’t operate out of brick-and-mortar branches, like traditional banks. Instead, expect your mortgage application process to occur both online and via phone calls with your loan officer.

Zillow Home Loans is currently licensed in 45 states and the District of Columbia. The company is not available in:

• Hawaii
• New Jersey
• New York
• Vermont
• West Virginia

However, borrowers in the majority of the U.S. will be able to find a home loan with Zillow.

To get started with your loan application, fill out the contact form online or speak directly with a loan expert. Zillow Home Loans’ toll-free phone number is (888) 852-2212.

Is Zillow the best mortgage lender for you?

Based on customer reviews, Zillow Home Loans seems to offer a fast, smooth lending experience. It’s also known to employ highly knowledgeable, friendly loan officers.

Despite the lender’s lack of transparency regarding mortgage rates and loan products, it appears to offer competitive interest rates and lower closing costs than some major competitors on average.

The lender doesn’t have branch offices, so you should only apply if you’re comfortable managing the mortgage process online.

Since Zillow doesn’t openly advertise credit requirements, you’ll need to fill out a contact form and start an application to see the best rate it can offer you.

Methodology

The Mortgage Reports considers multiple factors when reviewing lenders. These factors include credit and down payment requirements, loan types offered, customer service indicators, and availability of online tools. We then use these factors to rank lenders in four categories:

• Lending flexibility: Includes the number of loan types offered, special programs offered, minimum down payment requirements, and minimum credit score requirements
• Customer service: Includes CFPB complaints per 1,000 loans and average rating from other top rating services
• Ease of application: Includes the availability of an online pre-approval or pre-qualification process
• Online experience: Includes the robustness of the lender’s online offerings, including online chat availability, phone number availability, and learning center/help center availability