What Homeowners Wish They Knew First

SANTA ANA, Calif. — 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 by mortgage lender New American Funding.

The biggest misconception involves down payments, the survey found. About a fifth of those polled would have liked to know about down payment assistance programs as they began their homebuying journey. Another 13% of respondents did not know that they didn't have to provide a 20% down payment.

"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," said New American Funding President Christy Bunce. "Homebuyers have a significant number of options when it comes to loan programs that could cut that percentage dramatically.”

The 20% down payment myth is fading, but not fast enough

When it comes to the 20% down myth, Gen Z (17.4%) is more than half as likely than Baby Boomers (11.6%) to have believed that misconception. But the data also shows that when buyers do enter the market, most find a way to purchase a home with far less money upfront.

The findings show that 72.6% of respondents put down 10% or less when they bought their homes. Baby Boomers (18.1%) were the most likely to make a down payment of more than 20%.

However, 59.6 % of Gen Z buyers and 44.8% of millennials put down 3.5% or less. In fact, 18.1% of Baby Boomers, 15.5% of Gen X, 10.1% of Gen Z, and 9.9% of millennials surveyed said they didn't make a down payment at all. This may be because they used a 0% down loan, received down payment assistance, or help from family and friends to cover the expense.

Homebuyers in the Northeast (17.9%) were twice as likely as those in the West (8.9%) to wish they knew they didn't have to make a 20% down payment. The South (17.7%) had the highest percentage of buyers who put down 0%, compared to just 7.4% in the Northeast, 9.7% in the Midwest, and 13.4% in the West.

About 10.6% of recent homeowners would have preferred knowing they could negotiate with their sellers. And 9.9% would have liked to know about minimum credit score requirements to qualify for a mortgage prior to starting the process of purchasing a home.

Affordability is the top challenge for recent homebuyers

Finding the right home that they could afford was the hardest part for 44% of respondents.

About a third of Gen Z and millennials received financial help from family and friends. Still, the vast majority navigated the process without financial support. Nearly three-quarters of recent homeowners, 71.7%, said they didn't receive financial help from family or friends.

Northeastern homeowners received the most financial help, with 32.1% getting up to 20% of the sale price. That was compared to homeowners in the Midwest (20.7%), West (20.7%) and South (21.3%). 

Many homebuyers underestimated the cost of ownership

The actual cost of ownership was higher than anticipated for many homebuyers (17.1%). About 16.4% bought a home that needed more work than they expected and 13% felt they overpaid for their homes.

Maintenance and repair costs were higher than expected for 37.2% of respondents, followed by property taxes (25.4%) and utility bills (22.3%).

Despite the costs, about a quarter of recent homebuyers (24.8%) plan to stay in their homes for the rest of their lives. Baby Boomers (38.1%) were the most likely to want to stay in their homes forever, followed by Gen X (31.6%), millennials (18.5%), and Gen Z (11%).

And 72.9% of respondents would buy the same home if they could do it all over again.

Methodology

The national survey was completed by 1,056 homeowners whose loans are serviced by New American Funding. The survey was conducted in November and December of 2025.

Source: New American Funding

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