Down Payment

NMN: 6 homebuyer attitudes about affording a down payment

NMN: 6 homebuyer attitudes about affording a down payment

View the complete slideshow at National Mortgage News

Despite consumer demand for housing remaining high, homebuyers' confidence in their ability to save enough for a down payment fell in the first quarter, with some feeling less positive than others.

Millennials in particular saw declining confidence toward down payment affordability, with only 35% of millennial first-time homebuyers claiming they can afford a down payment, according to ValueInsured, a Dallas-based down payment insurance company. This is down nine percentage points from a year ago.

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The “ideal” down payment

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The “ideal” down payment

According to ValueInsured’s latest quarterly results, 7% of all millennials first-time homebuyers, if given the option to choose, hope to put down zero percent down; another 26% ideally wish to put down 3-5%. In other words, 1 in 3 (33%) believe their ideal down payment is up to 5%. Most cite the eagerness to buy immediately as their motive, and express an understanding that they could potentially be paying a higher interest rate and will pay higher monthly mortgage payment after having a lower down payment commitment. To 1 in 3 next-gen homebuyers, that is considered the ideal trade off.

© 2025 ValueInsured

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