Each year during National Homeownership Month, we take stock of what’s helping and what’s holding back first-time homebuyers across the country. This year, a major barrier came through loud and clear: misinformation about down payments.
A new national survey conducted by NeighborWorks America and Morning Consult shows that nearly 60% of U.S. adults overestimate how much is needed for a down payment, with more than a quarter believing they need 20% or more to buy a home. That outdated belief is keeping many would-be buyers on the sidelines.
The reality? You may need far less than you think, and help is available to make buying a home more affordable.
What the Survey Tells Us
- 49% of U.S. adults are interested in buying a home
- But 31% say homeownership feels unattainable
- 21% say saving for a down payment is one of their top barriers
- Only 25% of respondents have looked into down payment assistance, even though 61% say they’re aware of such programs
- 27% believe a 20% or higher down payment is required
This gap between perception and reality is leaving too many people behind, especially younger adults: 38% of Gen Zers and 32% of Millennials said they don’t believe they’ll ever own a home, even though 39% in each group are actively searching.
Let’s Clear This Up: You Don’t Need 20% Down
Depending on the mortgage program, first-time buyers may qualify with as little as 3% down. Many state and local programs also offer grants or forgivable loans to help with down payments. NeighborWorks network organizations across the country help homebuyers connect with these resources every day.
Housing Counselors: Your Trusted Guide
One of the most powerful tools available to new buyers is housing counseling. Our network organizations offer expert, personalized support, often at little or no cost to help people:
- Understand what they can afford.
- Build or repair credit.
- Explore down payment programs.
- Prepare for sustainable homeownership.
“A home purchase is not just one and done,” Melton adds. “Two years later, they'll have somebody talking to them about refinancing. A housing counselor can be your friend, telling you things you need to know at different stages. People don’t have to do this alone.”
What this means for Homeownership Month
There’s no question that people want to buy. The NeighborWorks survey shows that 72% of active buyers are setting aside money for a down payment. Others are working extra hours, cutting non-essential spending and doing everything they can to make homeownership possible.
What they need now is clarity. Support. And someone to walk alongside them.
At NeighborWorks America, we’re proud to help individuals and families turn their goals into plans and their dreams into deeds. This Homeownership Month, let’s move beyond the myths and start building what’s possible.
