Most homeowners wish they knew more about down payments before buying, survey finds

About 85% of homeowners with mortgages say there is something they wish they had known before starting the homebuying process, according to a new national survey of New American Funding (NAF) servicing customers, released Tuesday.

The biggest blind spot is down payments. Roughly 20% of respondents said they wish they had known about down payment assistance programs before buying, and another 13% did not realize a 20% down payment was not required to purchase a home.

“The long-held belief that you need a 20% down payment to purchase a home is simply not true. When someone assumes they need that much, it can be discouraging. But the reality is much different,” New American Funding President Christy Bunce said in the company’s announcement. “Homebuyers have a significant number of options when it comes to loan programs that could cut that percentage dramatically.”

The online survey, conducted in November and December 2025, collected responses from 1,056 homeowners whose loans are serviced by NAF.

Most buyers put down 10% or less

Despite persistent misconceptions, the data shows most buyers are purchasing with far less than 20% down. Overall, 72.6% of respondents reported putting down 10% or less on their homes.

Baby boomers were the most likely to make a down payment of more than 20%, at 18.1%. At the other end of the spectrum, low-down-payment financing was common for younger buyers: 59.6% of Gen Z buyers and 44.8% of millennials put down 3.5% or less.

Meanwhile, 18.1% of baby boomers, 15.5% of Gen X, 10.1% of Gen Z and 9.9% of millennials said they put down 0%.

NAF noted that buyers who reported 0% down likely used a zero-down loan, down payment assistance or financial gifts from family and friends.

Regionally, knowledge gaps around down payments varied. Homeowners in the Northeast (17.9%) were roughly twice as likely as those in the West (8.9%) to say they wish they had known they didn’t need a 20% down payment. The share of buyers who reported putting 0% down was highest in the South (17.7%), compared with 13.4% in the West, 9.7% in the Midwest and 7.4% in the Northeast.

Beyond down payments, many respondents said they wished they had understood other aspects of the transaction before entering the market. Over 10% (10.6%) of recent homeowners said they wish they had known they could negotiate more with sellers, and 9.9% said they would have liked to know about minimum credit score requirements to qualify for a mortgage earlier in the process.

These findings point to continued confusion over buyer leverage and qualifying standards, particularly in a higher-rate environment where sellers may be more flexible on concessions and rate buydowns in some markets.

Affordability remains the top challenge

Finding a home they could afford was the hardest part of the process for 44% of respondents, the survey found. The affordability strain persisted even with outside help. About one-third of Gen Z and millennial buyers reported receiving financial assistance from family or friends, yet nearly three-quarters of all recent homeowners (71.7%) said they did not receive any such support.

Regionally, Northeastern homeowners were most likely to receive family or friend assistance, with 32.1% saying they got help up to 20% of the sale price. That compared with 21.3% in the South and 20.7% in both the Midwest and West.

Cost surprises did not end at the closing table. The survey found 17.1% said the actual cost of homeownership was higher than they anticipated, 16.4% bought a home that needed more work than expected and 13% felt they overpaid for their home.

When asked which ongoing expenses were higher than expected, respondents cited maintenance and repair costs (37.2%), property taxes (25.4%) and utility bills (22.3%).

Despite affordability pressures and higher-than-expected expenses, most respondents remain committed to their purchase. Nearly three-quarters (72.9%) said they would buy the same home again if given the chance.

About 24.8% of recent homeowners plan to stay in their homes for the rest of their lives. Baby boomers were the most likely to want to “age in place,” at 38.1%, followed by Gen X at 31.6%, millennials at 18.5% and Gen Z at 11%.

“In today’s housing market, buyers should take advantage of money-saving opportunities. Down payment assistance programs, negotiating with sellers, and loans that allow lower down payments are powerful tools that can make the difference between waiting on the sidelines and securing your home,” Bunce said. “At New American Funding, our loan officers partner with homebuyers to help them navigate the process with confidence.”

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication. The system helps convert company announcements and industry data into HousingWire-style news coverage.