Find out what loan officers from 78 top lending companies across the country are seeing in the market right now—from down payment pressures and foreclosure activity to buyer misconceptions and equity-powered moves. Featuring insights from American Pacific Mortgage, Fairway Independent Mortgage Corporation, The Loan Store, and more.
Key findings from HomeLight’s Lender Insights & Predictions for Q2 2026 include:
- Buyers are looking to bypass the down payment barrier: 45% of lenders say borrowers often or very frequently ask about 0%-down mortgage programs, signaling how affordability pressures are shaping buyer financing strategies
- The typical down payment is 14%, yet almost a quarter of loan officers report an increase in buyers putting down between 5% and 10% on their new home.
- Home sales are increasingly falling through: 41% of surveyed lenders report an increase in purchases collapsing due to contingency clauses, such as home-sale or inspection contingencies.
- Foreclosure pressure is on the rise: 21% of loan officers report rising activity thus far in 2026, and 42% expect foreclosures to increase throughout the remainder of the year.
- Equity is powering the next wave of moves: Homeowners with accumulated equity are increasingly using it to fund their next purchase, bypassing the challenge of timing a home sale and purchase.
- Buy-first strategies are gaining traction: 54% of lenders say they’re fielding inquiries about buy-before-you-sell solutions that allow homeowners to purchase their next home before selling their current one.
- Alternative housing options are moving into the mainstream: Over 50% of lenders report borrowers are asking about financing nontraditional homes, with manufactured or mobile homes as the most common options.
- The report also examines local foreclosure trends, record levels of homeowner equity, and the top misconceptions lenders say are keeping otherwise qualified buyers on the sidelines.
