How it Works
You can now Try-Before-You-Buy a home. Really.
Homebuying is intimidating. We know that first-hand. So, we created an easier way to get into that ideal home sooner than later, and handle all that stress and paperwork later (from the comfort of your very own living room).
Note: Our qualification team typically requires a FICO credit score of at least 700.
On your schedule, with simple pricing
Find Your Simple Pricing
Just pay rent, and buy when you're ready
Included
Cash offer on the home of your choice
Option to buy the home with no competitive offers
Keys in as little as 7 days & a bottle of bubbly
24/7 Concierge Service
Predictable purchase price (a flat increase of 2.5% annual appreciation)
Ability to walk away if your plans change
Let's dig into the details
Pick the perfect home, we’ll get you the keys with 0% down payment
You pick any home on the market that meet our Property Guidelines and we’ll buy it with a cash offer, then lease it to you. You’ll pay us a simple starter cost that covers our services and the premium ZeroDown experience (see simple pricing). Once you get the keys, you’ll have the exclusive option to buy the home from us anytime after 30 days (and up to 3 years).
(See our
for details on homes we buy).Put down roots, enjoy your concierge-powered home
Members love ZeroDown's white-glove concierge service, which helps you get used to home ownership (Spoiler alert: you won't be begging friends for a plumber recommendation)
When you are ready to own it, get a traditional mortgage
When you buy it from us, you’ll go out and get the mortgage of your choice, and POOF! The home will be yours. You may choose to use ZeroDown even if you can get pre-qualified for a mortgage because of speed and certainty of financing. The offer is more likely to get accepted and not fall through with ZeroDown. And remember, you can buy the home from us anytime after 30 days from move-in. Other people may love that they don’t even have to think about a mortgage for months or years when they use ZeroDown. Note: ZeroDown is not a mortgage lender, provider, company or broker. ZeroDown has no obligation to provide or arrange a mortgage loan for you, and cannot guarantee that you will be able to obtain a mortgage loan.
Buy it from us at a predictable purchase price
You can purchase the home from us anytime between 30 days and 3 years after you move in. The purchase price of the home is fixed at a 2.5% annualized increase, and the way that works is as follows:
- 1.25% increase if you buy the home from us anytime before the 6 month anniversary of move in
- 0.20833% increase for each subsequent month that passes before you buy
- 1-6 months later, it would be $405,000.
- 7 months later, it would be $405,833
- 10 months later, it would be $408,333
- 12 months later, it would be $410,000
Want to move on? We’ll miss you, but we wish you well
After 2 years trying out your home-sweet-home, you can choose to leave -- no questions asked. Just like moving out of an apartment at the end of a lease, you can move on to your next thing with your head held high. Maybe, you’ll even move to another ZeroDown home (!)
ZeroDown is not a mortgage
And we’re not trying to replace mortgages. This is just something you do before you get a mortgage. See some key differences broken out below.
Mortgage
0% down payment
You can stay liquid and access your cash as needed.
Note there is a one-time starter cost of $3,000
Up to 20% down payment.
(as a percentage of home price depending on the type of mortgage).
You pay a flat monthly payment depending on the home price.
We pay property taxes and home insurance. You pay renter's insurance.
You pay a flat monthly payment. You also pay property taxes and home insurance.
Not debt, not a loan.
There is no interest rate or principal.
It’s leasing a home with an option to buy.
Yes debt, yes a loan.
Your downpayment & interest rates will determine monthly payments.
ZeroDown holds the title
until you buy it from us.
You hold the title
from the beginning.
Short term.
You’ll use ZeroDown for a few months or years.
Long term.
Most Americans use a 30-year mortgage.
Test-drive homeownership.
ZeroDown concierge is there to help you.
Full-on homeownership.
We pay property taxes.
You pay property taxes.
We handle repairs necessary for habitability (like roof, HVAC, etc.), you handle daily home maintenance.
You handle all service, repairs, etc.
How is this even possible?
We're in this to help a LOT of people get into their home ahead of schedule, so we built a model that makes a bit of money on each transaction -- when we buy the home, and when we sell it to you.
When we buy the home you love, we split commissions with the realtors.
We didn’t invent this, the commission already exists in standard real estate transactions.
You buy the home from us at a predictable annual appreciation rate of 2.5%
For instance, if you pick a home priced at $400,000, and you decide to buy it from us after Month 6 (but before Month 7), you'll buy it from us for $405,000. Our small profit from selling the home to you allows us to keep doing what we do. What if the true value of the home increases by more than 2.5% annualized? You capture all of that extra upside.
149 New Montgomery St., Floor 4
Suite 608
San Francisco, CA 94105
Support: hello@zerodown.com
Press: press@zerodown.com
