Housing News

What Homeowners Wish They Knew Before Beginning the Homebuying Process

Most homeowners with mortgages didn’t realize all the different ways they could save money when purchasing a home before they started the homebuying process.

About a fifth of homeowners wished they knew about down payment assistance at the start of their home search, according to a survey from New American Funding. These grants and low- or no-interest loans may be used to help homebuyers with their down payments and closing costs.

Another 13% of homeowners didn’t realize they could put less than 20% down on the sale price of a home.

Roughly 10.6% of homeowners would have preferred to know they could negotiate with sellers. Meanwhile, 9.9% would have liked to have understood the minimum credit score required to qualify for a mortgage as they began their home searches.

“In today’s housing market, buyers should take advantage of money-saving opportunities,” said New American Funding President Christy Bunce in a statement. “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.”

The national survey is based on 1,056 responses received from homeowners whose loans are serviced by New American Funding. The survey was conducted in November and December of 2025.

How much did owners put down on their home purchases?

Despite the common myth that homebuyers must contribute 20% of the sale price of the home, most homeowners surveyed, 72.6%, put down less than 10%.

Roughly 59.6% of Generation Z homebuyers and 44.8% of millennials only kicked in 3.5% or less, according to the survey.

These buyers may have used a Conventional loan, which offers a down payment as low as 3% in certain circumstances, or a Federal Housing Administration (FHA) loan, which may require a down payment of only 3.5%.

These two loans are among the most popular because of their low down payment requirements.

Many buyers reported not putting down anything at all. About 18.1% of Baby Boomers, 15.5% of Generation X, 10.1% of Generation Z, and 9.9% of millennials didn’t make a down payment.

They may have used a U.S. Department of Veterans Affairs (VA) loan or a U.S. Department of Agriculture (USDA) loan, which don’t require down payments. Or they could have received down payment assistance or help from family and friends to cover the expense.

There were regional differences as well.

The South had the highest percentage of buyers who reported not making a down payment, at 17.7%. That was more than double the percentage in the pricier Northeast, 7.4%. About 9.7% of homeowners in the Midwest and 13.4% in the West also didn’t put anything down.

Many buyers underestimated homeownership costs, but would still buy the same home again

Homeownership costs were more expensive than many homebuyers realized. But that wouldn’t stop the majority from purchasing the same home again.

More than a third of homeowners, 37.2%, reported maintenance and repairs were more than they expected. The same was true for property taxes, 25.4%, and gas and electricity bills, 22.3%.

Yet despite the costs, nearly three-quarters of homeowners would still buy the same home. And many don’t expect to eventually sell their properties.

Baby Boomers, 38.1%, were most likely to say they planned to stay in their homes forever, followed by Generation X, at 31.6%.

Younger homeowners were more likely to anticipate moving in the future. Just 18.5% of millennials and 11% of Generation Z plan to stay put.