Many Americans dream of owning a home, but potential first-time buyers face many hurdles, especially with down payments.

That was the consensus of a recent LendingTree survey of more than 2,000 U.S. consumers, which found that the majority of potential homeowners insist on paying a down payment, and common misconceptions about how much they should pouring can slow them down.

Main conclusions:

• Down payments hold back a lot of home ownership. 81% of potential first-time buyers are stressed about making a down payment.
• Misconceptions about how much a consumer should spend can be an additional barrier. More than a third of Americans – and 41% of those who have never owned a home – think they need to put 20% aside to buy a house.
• Private Mortgage Insurance (PMI) can be confusing and many Americans (60%) don’t know how to get rid of it.
• Nearly a quarter (24%) of homeowners say their loved ones helped them with their down payment, either in the form of a gift (16%) or a loan (8%). This figure jumps to 37% among millennial owners.
• Nearly 30% of potential first-time buyers hope to fund their down payment with a personal loan, but most lenders won’t allow it.

Take-out:

“A smaller down payment can make it harder for you to get approved for a loan, and it can also result in you getting a higher interest rate if you’re approved. That said, given that so many homeowners put less than 20% down, most potential buyers probably don’t have to worry too much about not being able to put down 20% or more,” said LendingTree senior economist Jacob Channel.

To view the full report, Click here.