2 Major Myths Holding Back Home Buyers

2 Major Myths Holding Back Home Buyers | Simplifying The Market

Urban Institute recently released a report entitled, “Barriers to Accessing Homeownership,” which revealed that eighty percent of consumers either are unaware of how much lenders require for a down payment or believe all lenders require a down payment above 5 percent.”

Myth #1: “I Need a 20% Down Payment”

Buyers often overestimate the down payment funds needed to qualify for a home loan. According to the same report:

Consumers are often unaware of the option to take out low-down-payment mortgages. Only 19% of consumers believe lenders would make loans with a down payment of 5% or less… While 15% believe lenders require a 20% down payment, and 30% believe lenders expect a 20% down payment.”

These numbers do not differ much between non-owners and homeowners; 39% of non-owners believe they need more than 20% for a down payment and 30% of homeowners believe they need more than 20% for a down payment.

While many believe that they need at least 20% down to buy their dream home, they do not realize that programs are available that allow them to put down as little as 3%. Many renters may actually be able to enter the housing market sooner than they ever imagined with programs that have emerged allowing less cash out of pocket.

Myth #2: “I Need a 780 FICO® Score or Higher to Buy”

Similar to the down payment, many either don’t know or are misinformed about what FICO® score is necessary to qualify.

Many Americans believe a ‘good’ credit score is 780 or higher.

To help debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.

2 Major Myths Holding Back Home Buyers | Simplifying The Market

As you can see in the chart above, 53.5% of approved mortgages had a credit score of 600-749.

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream home may already be within your reach.

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26827 N 68th Street Scottsdale, AZ 85266

$1,999,999
5 Beds
5 Baths
4,383 SqFt
Status Active
MLS # 6640376
Property Type Single Family Residence
Price Type --
HURRY~!!! BACK ON THE MARKET~! ACRE+CONTEMPORARY MASTERPIECE~! Paradise awaits you via the curved driveway framed by mature shade trees, large cacti & flowering shrubs.. This custom was built to last with Integra Block/I-Beam/Post Tension Concrete. Unique floorplan connects by an upper level view skywalk overlooking the heart shaped pool and lighted tennis court.. Wood/tile/concrete flooring. All bedrooms have walk-in closets & upper deck access. Guest house with mini-kitchen & 3/4 bath. Office with Library wall, Media Room, Home Gym w/shower, Big Laundry/Storage Room. Soaring wood ceilings in great room. Dual Island kitchen w/sleek gray quartz counters, induction cooktop, stainless appliances, tall wine cooler/Dry Bar, 2 exterior patios/metal fireplace, B/I BBQ ramada, garden, NO HOA!

8315 E Palm Lane Mesa, AZ 85207

$1,999,995
6 Beds
3 Baths
5,539 SqFt
Status Active
MLS # 6804482
Property Type Single Family Residence
Price Type --
Welcome to your luxurious dream home, where timeless elegance meets modern convenience. This custom neoclassical architectural masterpiece exudes charm and sophistication, designed to impress at every turn. Set on an expansive 35,000 sq. ft lot in the highly coveted Maricopa County Island, this private gated property offers sweeping views of Arizona sunsets and sparkling city lights from multiple vantage points. Enjoy the benefit of NO HOA, low utility costs, and reduced taxes—just minutes from the Loop 101 Freeway and conveniently located east of Las Sendas. A private well, shared with two neighbors, keeps water costs under $300 annually—an incredible value for the area. The curved driveway side yard welcomes you to this grand estate as you pass through the private gate... CLICK MORE Four towering pillars frame the entrance, leading you into a stunning foyer with soaring ceilings, elegant chandeliers, and a dramatic staircase. The formal dining area and grand entry set the tone for a home designed for both comfort and luxury. Inside, the open floor plan flows effortlessly from room to room, with a seamless blend of tile and carpet flooring. Elegant chandeliers, large windows, and an inviting atmosphere create a bright and airy space, perfect for both everyday living and entertaining. The main floor offers a thoughtfully designed office that is ideally located near the front, providing privacy and versatilityideal for a home office or a secondary workspace. The lower level guest room with a private exit, is ideal for in-laws or as a second master suite complete with ensuite. The heart of the home is the gourmet kitchen, equipped with high-end stainless steel appliances, a stylish tile backsplash, and a 7.5'x8' granite island with dual breakfast bars. Whirlpool appliances, a Viking refrigerator, a wall oven, a glass cooktop, and a farm sink provide the ultimate cooking experience, while the expansive walk-in pantry ensures ample storage space. The great room, perfect for relaxing or entertaining, boasts a cozy gas fireplace, surround sound, and easy access to the Italian-style courtyard, complete with a charming fountain. Juliet balconies above offer functional beauty, providing an intimate retreat. Escape up the stairwell to the stunning balcony inviting you to enjoy the views of the city lights, and mountains beyond. Upstairs, a spacious loft, a Jack and Jill bathroom, and an entertainment room offer endless possibilities. The luxurious master suite is a private sanctuary, featuring balcony access, dual walk-in closets, and a spa-like ensuite with a Roman sunken jetted tub, tiled shower, and dual vanities with a separate make-up vanity. Recent updates include a brand-new AC unit (2023), a full interior paint refresh (2021), an epoxy garage floor (2023), updated ceiling fans and light fixtures (2021), custom shutters (2021), and a refreshed yard with new rock and curbing (2023). The home also features a whole-house water filtration system, a new water heater (2022), and a newly upgraded yard watering system (2023)making it an incredibly low-maintenance home for effortless enjoyment. The spacious backyard is ready for your personal touchwhether you dream of an expansive outdoor oasis or a tranquil retreat, there's endless potential to design your ideal landscape. With its low-maintenance charm and thoughtful design, this home has been a true pleasure for its owners, and now, it's ready for you to make it yours. Don't miss this remarkable opportunity to own a piece of luxury.

10799 E Florence Way Scottsdale, AZ 85262

$1,999,995
4 Beds
4.5 Baths
4,616 SqFt
Status Active
MLS # 6766125
Property Type Single Family Residence
Price Type --
Welcome to an exquisite home in the prestigious gated community of Treviso, meticulously maintained by its original owners. This home backs to protected McDowell mountain preserve which cannot be built on, with access to hiking/ biking trails just a short walk from the property 2 min from Mirabel country club, 5 min from Desert Mountain, & 10 minutes from historic downtown cave creek. As you enter through the charming courtyard, you're greeted by a spacious great room featuring disappearing pocket doors that frame stunning views of McDowell Sonoran Preserve and the surrounding mountains. This thoughtfully designed split floor plan features three en-suite bedrooms, a den, a separate casita, & a versatile bonus room. The large kitchen is a chef's dream, complete w/a massive island, stainless steel appliancesincluding a Sub-Zero refrigerator, Wolf ovens, & dual dishwashers. A convenient wet bar adjacent to the dining room makes entertaining a breeze. Step outside to your backyard oasis, which boasts two patios, a refreshing pool, & a fully equipped outdoor kitchen all with those gorgeous views. This upscale gated community includes a thoughtfully designed community with spacious desert areas between homes to ensure privacy and serenity, creating a serene lifestyle close to premier dining and shopping conveniences, yet retaining an exclusive ambiance with custom homes set amidst the allure of North Scottsdale's desert landscape. Elevate your lifestyle and make Treviso your oasis in the desert - a retreat where luxury knows no bounds.

20475 E Indiana Avenue Queen Creek, AZ 85142

$1,999,975
3 Beds
4 Baths
3,124 SqFt
Status Active
MLS # 6788289
Property Type Single Family Residence
Price Type --
One year new, LUXURY 3 bedrooms plus office plus bonus room, single story, with pool & spa, 3 car garage in the gated community of Bridle Ranch. Many upgrades, tile flooring, high ceilings, upgraded cabinets and lighting throughout. 3 separate heating/cooling zones. Upgraded insulation to lower energy costs. Dual slab islands, extra kitchen cabinet storage, stainless steel appliances, double ovens. Upgraded closets throughout. Exterior cabana and outdoor firepit for entertaining and for those chilly desert evenings. Self cleaning heated pool is controlled via phone app. Close to dining shopping entertainment and walking/biking trails. Minutes from Fat Cats (movies/bowling/arcade games). Minutes from San Tan Mt Park. Close to Pecan Lake Entertain. All furniture avail for purchase. Close to Pecan Lake Entertainment. Sellers are licensed AZ & NV real estate agents. Please note there are recording devices throughout the property.

12315 E Black Rock Road Scottsdale, AZ 85255

$1,999,950
4 Beds
4 Baths
2,475 SqFt
Status Active
MLS # 6825805
Property Type Townhouse
Price Type --
Move-in Ready! Fully furnished, newly built Desert Contemporary home in prestigious Sereno Canyon, a premier luxury guard-gated community in North Scottsdale. This stunning single-level modern design home truly has it all with open-concept great room features retractable sliding glass doors perfectly framing breathtaking mountain and sunset views beyond. Situated on a premium lot offering both privacy and breathtaking views, this 2,475 sq. ft., 4 bed, 4 full baths including flex office/mediaroom and separate casita, features clean architectural lines, premium finishes and curated designer furnishings throughout. Nestled against the majestic McDowell Mountains with direct views of Tom's Thumb and the sunsets beyond, this contemporary masterpiece effortlessly blends elegance with resort-style living. Seamless Arizona indoor-outdoor living with spectacular great room floorplan featuring a disappearing wall of glass sliders opening to an expansive private covered patioperfect for entertaining and relaxing. The outdoor haven is complete with a 75-inch flat-screen TV, built-in BBQ, sleek linear outdoor fireplace, extended seating area, ceiling fans, outdoor electric heater and tranquil water feature just outside the primary suite window. Enjoy unobstructed mountain vistas and breathtaking sunsets framed by view fencing. The chef-inspired gourmet kitchen is a true showstopper, outfitted with Wolf stainless steel appliances, 6-burner gas range, state-of-the-art Sub-Zero fridge, and a large quartz extended island with breakfast bar seating. Tons of custom cabinetry, storage, spacious pantry, and designer lighting complete this modern culinary masterpiece. The luxurious primary suite offers a serene retreat, with spa inspired bathroom including dual vanities, walk-in shower, large soaking tub, and a spacious walk-in closet with custom shelving. Beautifully appointed guest ensuite bedroom with walk-in closet, a separate flex bedroom (currently serving as a chic media room with sofa sleeper) and a private attached ensuite casita complete with its own private entry, spacious nook and wine fridge, provide ideal accommodations for family and guests. This move-in-ready home is further elevated by modern lighting fixtures, electric window coverings, sunscreens, brand-new washer and dryer, EV charging station, and comes fully furnished with modern designer furnishings meticulously curated for convenience and style. Just a short stroll away, The Mountain House Lodge offers a private, amenity-rich neighborhood including a cutting-edge fitness center, luxurious spa facilities with steam rooms, resort-style swimming pools, hot tub, gourmet dining options, community fire pits, cozy gathering areas, a café, and charming guest cottages. Enjoy the peace of mind provided by a guard-gated community and the ease of a lock-and-leave lifestyle, with the HOA handling front yard landscaping, roof maintenance, and exterior care. Perfectly located minutes from premier golf and country clubs, Pinnacle Peak Park, luxury shopping, fine dining, and surrounded by scenic hiking and biking trails, this Sereno Canyon retreat offers the pinnacle of luxury desert living. Experience the epitome of luxury desert modern living in this turnkey Sereno Canyon retreat.

9160 E Wethersfield Road Scottsdale, AZ 85260

$1,999,950
4 Beds
3.5 Baths
3,405 SqFt
Status Active
MLS # 6821030
Property Type Single Family Residence
Price Type --
STUNNING Luxury Hm in Executive GATED COMMUNITY in Cactus-101 Corridor. Beautiful OAK HARDWOOD Flrs! Upgraded Cabinets! GOURMET WOLF SUB ZERO KITCHEN designed for entertaining boasts 10ft GRANITE Center Island with Breakfast Bar, 5 Burner Gas Cooktop, B/I SubZero Fridge, W/I pantry, & B/I Desk. Family Rm has stunning Caesarstone Wall for TV & Electric Firpl. 12 Ft Retractable Dual Opening Doorwall leads to BEAUTIFUL Back Yard offering a cool POOL, B/I Grill & Fridge with Seating Area. Formal Living Rm has Wet Bar with Beverage Fridge & views of BkYd. Mstr Suite has seating & TV area. Lg custom W/I Closet. LUXURIOUS BATH with stand-alone tub & dramatic floor to ceiling tile walk-in Shower. 3 spacious bedrms have Oak Flooring, Custom Window Treatments & Stunning bathrms! Solar-Paid!

5045 E Calle Del Sol -- Cave Creek, AZ 85331

$1,999,900
5 Beds
4 Baths
4,344 SqFt
Status Active
MLS # 6829224
Property Type Single Family Residence
Price Type --
Welcome to this exquisite luxury residence with modern elegance situated on over 1.6 acres with 4344 sq ft of living space featuring stunning mountain views, no HOA, 5 beds/4 baths, designer finishes throughout, soaring ceilings, 3 car garage, oversized RV Garage, covered RV parking, sparkling heated pool & spa, built in BBQ & outdoor fire pit to enjoy this resort backyard perfect for entertaining. Recent improvements include newer windows, septic, roof, HVAC, landscape & multiple patios. The home features lots of natural light and majestic views to soak in the mountains & Arizona sunsets. Just minutes away from all that Cave Creek has to offer including restaurants, golf, hiking trails, nature/wildlife areas & art galleries.

10015 N 55th Street Paradise Valley, AZ 85253

$1,999,900
5 Beds
3 Baths
3,766 SqFt
Status Active
MLS # 6759455
Property Type Single Family Residence
Price Type --
Amazing residence on a private cul-de-sac lot with views of Camelback Country Club Golf Course & amazing mountains! Double custom iron-work doors open to the dramatic entrance of the staircase overlooking the Great Room, which highlights a fireplace & soaring high ceilings. Panoramic windows, designer tile & natural stone, 3 fireplaces, surround sound speakers, plantation shutters, & elegant light fixtures. Fabulous dining room ideal for dinner parties. Immaculate kitchen showcases a large center island great for entertaining, granite counters, built-in SS appliances & a wine cooler, & tons of cabinets. Oasis backyard offers a pebble-tech pool with gorgeous waterfalls, putting green, & large covered patio. For your vehicles, you'll find a 3-car oversized garage and an RV gate. Huge main retreat features a spa-like bathroom with a shower boasting a glass block wall, a jetted tub, dual square vessel sinks, & walk-in closet. Great home with solar from Tesla. Great opportunity! Bring your buyers, they will love it! Hurry!

5535 W Corliss Circle Prescott, AZ 86305

$1,999,500
5 Beds
5.5 Baths
3,712 SqFt
Status Active
MLS # 6770392
Property Type Single Family Residence
Price Type --
Truly one of the more magnificent homes in the entire community of Whispering Canyon and the Williamson Valley area. Perched atop a level 1.97 acre mountain ridge with sweeping and dramatic long distance views this home makes a statement. Single level residence with 5 Suites, 5.5 bathrooms, an oversized 3.5 car garage, patios for outside entertaining and plenty of space for storage. Features include beamed ceilings, Porcelain tile flooring, real stone accents throughout, ''Milgard'' clerestory windows, power blinds, two fireplaces, premium built-in appliances and Wine Cellar. Mountain modern finishes throughout the home add a touch of contemporary elegance, while every window strategically captures a picturesque view. Professional landscaping in front & back with drip systems.

1778 E Ramsey Road Benson, AZ 85602

$1,999,000
4 Beds
3.5 Baths
3,551 SqFt
Status Active
MLS # 6737548
Property Type Single Family Residence
Price Type --
Stunning 54-Acre Ranch Property! Experience luxury and comfort in this 3551sqft home featuring an open floor plan, 4 beds, 3.5 baths, granite countertops, wood burning fireplace with stone covered surround, oversized doors, split floor plan, large laundry room with cabinets and countertops. The estate includes 2 horse pastures, riding arena, 8 steel corrals, and 72x60 haybarn. Enjoy modern outdoor amenities like a gazebo with a half bath and outdoor shower, a heated pool and spa, and a basketball/pickleball court. Additional highlights are a 100sqft meat locker, 50x75 3bay insulated shop, internet tower, 22kw generator, and 90 pecan trees. Ideal for horse enthusiasts and those seeking spacious, tranquil living. Don't miss out on this extraordinary opportunity to own a piece of paradise.

7289 E Spanish Bell Lane Gold Canyon, AZ 85118

$1,999,000
4 Beds
4.5 Baths
4,927 SqFt
Status Active
MLS # 6751504
Property Type Single Family Residence
Price Type --
Custom home where luxury meets comfort with Mountain Views. With thoughtful design and impeccable quality throughout, this home features: Custom Arched Doors; Great Room with Fireplace & Wet Bar; Gourmet Kitchen complete w/fireplace-TV Sitting area & spacious breakfast area; Formal Dining Room w/Built-in food warmer for convenient hosting; Master Suite includes Spa like bathroom - Sitting area - Exercise room & private access to Spa & Pool; 3 Ensuite Guest Bedrooms including a detached casita; Two Private Offices; Large covered Patios - Heated Pool - Built in BBQ Kitchen- New Putting Green; Extra height and length 4.5 car garage; 4 New A/C units 2022 - Stucco painted 2023 - Inside Painted 2024. Welcome to your dream home at the base of the Superstition Mountains.

35190 S April Drive Black Canyon City, AZ 85324

$1,999,000
3 Beds
2 Baths
1,854 SqFt
Status Active
MLS # 6805633
Property Type Single Family Residence
Price Type --
360 Degree Views including amazing Sunrises & Sunsets. 11.6 acres of Horse Ranch up on the hills of April Dr. 3 Bdrms, 2 Baths, Updated Kitchen w/ Stainless Steel appliances, gorgeous 24 x 24 tile counter tops, lg Kitchen Island w/ area for chairs. Both Bathrooms have been updated w/ showers, tall cabinets w/ new sinks, faucets & toilets. Updated entire floor thru-out the house w/ Woodgrain ceramic tiles. Lg Living Room & Lg Dining area. Lg Backyard area w/ Patio. Extremely lg horse facility, almost 7 acres including corrals, sheds, full size Dressage arena, overhead horse shelters, wash rack & areas for horse to roam. Galvanized steel wire fence around the entire backyard & horse area ($12,000) Driveway to horse corrals in addition to front driveway. 2 car garage w/ added parking

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