ZeroDown launches its real estate platform with $30M

ZeroDown launches in the Bay Area with $30 million in funding

It’s fairly well known at this point that San Francisco is one of the country’s (if not the world’s) craziest housing markets. Houses there are incredibly expensive, and only getting more so. The Bay Area also tops the charts in how much money a borrower has to earn to afford to buy there.

Plus, new data shows that it would take as much as 40 years for a borrower to save up a 20% down payment to buy a house in San Francisco. Heck, even ramshackle San Francisco shacks are listed for $2.5 million.

No matter how you look at it, buying a house in San Francisco is neither easy nor cheap.

But, now, there’s a way for people to buy a house in San Francisco for as much as $1.75 million with no down payment.

ZeroDown offers prospective homebuyers the option of buying a house in San Francisco with no down payment and no assumption of mortgage debt by the buyer. And the company will provide buyers with keys to their new home within seven days.

How? Well, here’s how it works, according to the company:

• Buyers qualify using an online approval process, then select the home they want to buy.
• Then, the company will buy the house with its own funds, and allow the customer to move into the house within seven days.
• But the customer doesn’t own the house, nor do they have a mortgage payment either.
• Rather, ZeroDown owns the house and will continue to own the house for as much as five years.

The customer makes lease payments to the company in exchange for “purchase-credits” that represent a percentage of the home’s value. Then, after at least two years of occupancy, the customer has the option to buy the home from ZeroDown using their “purchase-credits” as a down payment.

Read more here

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