Millennials Need More Help On Down Payments – NMP
Industry News

Millennials Need More Help On Down Payments

Sep 16, 2020
stack of dollar bills
A headshot of Keith Griffin
Senior Editor

A new report from LendingTree shows Millennials need 50% more help when it comes to down payment assistance compared with the national average. Most of that assistance is coming from equity in properties owned by relatives.
 
“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.”
 
The LendingTree report said 59% of millennial homebuyers are receiving help with their mortgage down payment. That compares with about 4 in 10 homebuyers of all ages relying on help from family members, friends, employers or a down payment assistance program to get a mortgage for their home purchase.
 
The report, based on a survey of over 1,000 homebuyers about their down payment plans, also shows 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%.
 
Education appears to be a service loan originators could offer their clients. LendingTree’s report says four 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. Another 17% say they know everything there is to know about the topic.
 
About the author
A headshot of Keith Griffin
Senior Editor
Keith Griffin is a senior editor at NMP.
Link copied
Published
Sep 16, 2020
Get the NMP Daily
Analysis and Data
Home Contract Signings Hit Record October Low, Falling 17%

Realtor.com reports a sharp decline in purchase activity as higher rates erode borrowing power

Home contract signings fell 17% year over year in October, reaching their lowest level for the month on record, as higher mortgage rates continued to squeeze buyers out of the purchase market, according to Realtor.com's latest housing report.The annual decline was the steepe...

Continue reading
People On The Move
Newrez Taps Former Rocket Servicing Chief To Lead $879B Portfolio

Jay Jones takes charge as Newrez prepares for a multiyear technology migration involving more than 4 million homeowners

Newrez has appointed former Rocket Mortgage executive Jay Jones as chief servicing officer, putting him in charge of an $879 billion servicing portfolio as the company prepares for a major overhaul of its technology infrastructure.Jones, who assumed the role Nov. 3, will ove...

Continue reading
Renew your NMLS License — for free.

Enjoy access to a free NMLS renewal class when you attend an in-person event.

Find an event
More from
Industry News
Fed Holds Rates, But Pricing Pressures Persist

Rising Treasury yields and fresh inflation data complicate rate locks, borrower qualification, and lender margins as markets anticipate another hike in December

Industry News
Oct 29, 2026
Zippy Adds Capital For Manufactured-Home Lending Push

The $20 million investment from Saluda Grade will support expansion beyond 27 states and new loan products across wholesale, retail, and community channels

Industry News
Oct 16, 2026
Inflation Hits 3.7%, Putting Mortgage Rate Relief At Risk

September’s inflation pickup puts recent rate improvements at risk, potentially eroding affordability gains from lower home prices and seller concessions

Industry News
Oct 14, 2026
PLACE Acquires Ardley, Expanding Push To Turn Existing Borrowers Into New Loans

The latest deal connects borrower retention technology with Maxwell's origination platform and PLACE's real estate network, creating new opportunities for lenders

Industry News
Oct 09, 2026
Equifax, TransUnion Launch New Tools To Cut Credit Report Costs

Both bureaus introduce ways to purchase credit scores separately from reports, while Equifax reports growing VantageScore adoption and extends $1 pricing through 2028

Industry News
Oct 09, 2026
Newrez, eXp Realty Form Joint Venture To Target Purchase Business

Revenos Mortgage is set to launch in early 2027, replacing eXp's joint venture with Kind Lending

Industry News
Oct 08, 2026