ZeroDown raises $100M to open operations in San Francisco

ZeroDown, a property startup, is looking to allow more people to own homes in the expensive San Francisco Bay Area by removing the roadblocks of  the homebuying process, namely the down payment and mortgage, and buy homes for its customers outright.

But it doesn’t give the properties away. Rather, the company buys the house with its own funds, without requiring its customers to put down a down payment or assume a mortgage, then leases the property to the customer for a period of as long as five years.

During that time, the customer builds up “purchase credits,” which can then be used as a down payment when they are ready to buy the house themselves.

When the company launched in June, it had $30 million in its coffers, and now, the company is ready to expand after securing $100 million in debt financing from Credit Suisse.

According to ZeroDown, it will use the new debt capital to “fuel the next stage of the company’s growth.”

The company reports that demand for its offering has quadrupled since the company publicly launched in June, and now it’s poised to continue growing.

“ZeroDown has received an overwhelmingly positive response during the past few months and has provided San Francisco residents with the means to buy their dream homes,” said Scott Lustig, Director of Capital Markets at ZeroDown. “This additional funding from Credit Suisse enables us to accelerate our mission of giving homebuyers greater power and flexibility in the home buying process.”

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