About four in 10 homebuyers of all ages are relying on help from family members, friends, employers, or a down payment assistance program to get a mortgage for their home purchase.
That's from a new LendingTree report focused primarily on homebuyers' down-payment plans.
As home prices continue their upward climb, many homebuyers are finding they need financial support to achieve their homeownership goals, according to mortgage reporter for LendingTree, Crissinda Ponder.
The survey of more than 1,000 homebuyers reveals their down payment plans, while also gauging their understanding of the overall mortgage lending process.
Of millennial homebuyers, 59% are receiving help with a mortgage down payment.
“The large share of millennials receiving down payment help highlights the importance of intergenerational wealth transfers,” said Tendayi Kapfidze, LendingTree’s Chief Economist. “Much of the down payment assistance comes from accumulated equity from homes owned by older generations.”
Additionally, more than two-thirds (73%) of first-time homebuyers say they’re receiving some form of down payment help.
Nearly a third (31%) of homebuyers plan to contribute at least a 20% down payment.
Baby boomers are the age group most likely—at 56%—to put down 20% or more. By contrast, only 29% of Gen Xers and 22% of millennials plan to spend as much on their down payment.
About 1 in 5 (21%) first-time buyers plan to put down 5% to 9% of their home’s purchase price, while 22% of repeat buyers plan to put down 10% to 14%.
Only 18% of Black homebuyers say they’ll put down at least 20%, compared with:
33% of white buyers
32% of Asian buyers
26% of Hispanic or Latino buyers
More than half (51%) of homebuyers plan to get a conventional loan.
Additionally, 4 in 10 homebuyers have very little to no knowledge of the mortgage lending process. However, 44% of buyers say they know a lot—but not everything—about getting a mortgage, and another 17% say they know everything there is to know about the topic.
For more details and methodology of the survey, access the full report here.