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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4205 E Edgemont Avenue Phoenix, AZ 85008

$1,395,000
5 Beds
4.5 Baths
3,815 SqFt
Status Active
MLS # 6786927
Property Type Single Family Residence
Price Type --
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8620 E San Miguel Avenue Scottsdale, AZ 85250

$1,395,000
4 Beds
3 Baths
2,677 SqFt
Status Active
MLS # 6786774
Property Type Single Family Residence
Price Type --
Discover this one-of-a-kind South Scottsdale gem, offering unparalleled style, comfort, and convenience. Featuring two master suites, an incredible backyard with a heated pool, and a fully remodeled interior with modern mid-century charm, this property is truly special. The home is turnkey, with all furnishings available for purchase. Outdoor amenities include natural gas hookups for a firepit and BBQ, plus a spacious 2-car garage with 4 additional parking spaces. Bright and inviting, this home captures the South Scottsdale lifestyle, perfect for foodies, winter visitors, and year-round residents. Our motivated seller is offering everything in the home at an attractive price with the right offer. Check out the EV Charging Station in the garage. Please pop over and visit us today!

4219 E Janice Way Phoenix, AZ 85032

$1,395,000
6 Beds
3 Baths
3,180 SqFt
Status Active
MLS # 6786822
Property Type Single Family Residence
Price Type --
North Phoenix Living at Its Finest!! Discover this incredible property, perfectly situated on a sprawling 1/3-acre cul-de-sac lot. This unique home offers two living spaces in one, with separate yet connected additional quarters featuring their own entrance, two kitchens, and two master bedrooms—all on a single level. The backyard is an oasis of fun, complete with a massive heated pool, supported by two propane tanks, and ample space for relaxation or play. Fully furnished* and move-in ready, the home boasts a huge main living area and endless amenities designed for comfort and versatility. Truly a must-see, this property offers an exceptional lifestyle for families, entertainers, and anyone seeking space and style. (*Furnishings negotiable.) Please pop over and see us!

7222 E Gainey Ranch Road Unit 136 Scottsdale, AZ 85258

$1,395,000
2 Beds
2 Baths
1,776 SqFt
Status Active Under Contract
MLS # 6757539
Property Type Townhouse
Price Type --
NEWLY REMODELED, SINGLE LEVEL, ON THE GOLF COURSE, WITH NO OTHER UNIT ABOVE YOUR MAIN LIVING AREAS. EXPANSIVE VIEWS ACROSS TWO FAIRWAYS, MOUNTAIN VIEWS AND AMAZING SUNSETS! The perfect Scottsdale Retreat! This combination doesn't come up very often. Don't miss this 2 bedroom, 2 bath, plus den with no steps and 2-car attached garage. Beautifully finished with New Flooring, Remodeled Bathrooms and Kitchen. Enjoy the premier community in Scottsdale with all its resort style amenities . . 6 tennis courts, 4 pickleball courts, gym, 25 meter pool, and nestled within the 27 holes of championship golf at the Gainey Ranch Golf Club! Walk to the Hyatt Resort and the Shops at Gainey Village. Enjoy the resort lifestyle in Gainey Ranch.

12271 N 74th Street Scottsdale, AZ 85260

$1,395,000
4 Beds
2 Baths
2,250 SqFt
Status Active
MLS # 6786017
Property Type Single Family Residence
Price Type --
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5952 E Adobe Drive Phoenix, AZ 85054

$1,395,000
4 Beds
4.5 Baths
3,505 SqFt
Status Active
MLS # 6713904
Property Type Single Family Residence
Price Type --
Lesser price than recently sold in the neighborhood. Discover the exquisite Shea 5016 floor plan home in the exclusive Talinn gated community. This upgraded residence features 4 bedrooms and 4.5 bathrooms, located within 3 miles of Desert Ridge Marketplace, High Street Mall, and Scottsdale Quarters. Upon entering, you're greeted by an elegant accent wall and marble-look flooring. The gourmet kitchen includes quartz waterfall countertops, a matching backsplash, upgraded cabinets, and a custom-built refrigerator. The first floor has a guest bedroom and a den with double doors, ideal for a home office. The living area boasts high ceilings, creating a grand atmosphere. Upstairs, find three additional bedrooms and a versatile loft for entertainment or relaxation. The private backyard oasis features turf and limestone landscaping, a built-in fireplace, pergola, built-in BBQ, separated plants, and mountain views with no neighbors behind. Prime Location: Minutes from Desert Ridge Mall, Scottsdale, Mayo Clinic, High Street, JW Marriott, and major IT hubs like American Express and PayPal. Nearby Desert Horizon Park enhances the appeal. Interior highlights include large-format marble-look tiles, soaring ceilings, over $300,000 in upgrades, a waterfall quartz countertop, and zebra shades. The entertainment-ready backyard has a large pergola, TV wall, bar with refrigerator, BBQ, two fireplaces, a sink, and a gas stove. Luxurious bathrooms feature quartz countertops and upgraded showers. The master suite offers custom-built closets. Modern amenities: state-of-the-art security, smart home capabilities, a three-car garage, high-efficiency water drop RO system, and water softener. Provisions for a projector in the main living area and multi-colored paint themes add personalized touches. The premium lot offers park views and no neighbors behind, ensuring privacy and prestige. Community features include gated access, parks, biking trails, a swimming pool, and a gym. Make this luxurious home yours today!

7127 E Rancho Vista Drive Unit 4012 Scottsdale, AZ 85251

$1,395,000
2 Beds
2 Baths
1,448 SqFt
Status Active
MLS # 6722940
Property Type Apartment
Price Type --
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9768 E Balancing Rock Road Scottsdale, AZ 85262

$1,395,000
4 Beds
2.5 Baths
2,964 SqFt
Status Active
MLS # 6713491
Property Type Single Family Residence
Price Type --
Indulge in luxury desert living in this beautifully remodeled home within the Golf Community of Balancing Rock at Troon North. Enjoy panoramic views of Pinnacle Peak & unique boulder outcroppings. With 4 bedrooms and 2.5 baths, every detail exudes elegance. The kitchen, now seamlessly integrated with the great room, boasts quartz countertops, newer cabinetry, & an induction cooktop. Entertain in the formal dining area or retreat to the separate office/den. The split master suite offers privacy, enhanced by plantation shutters, wood-like tile planks & leads into the ''spa like'' bath with an abundance of closet space.. Outside, a heated spool, built-in BBQ, and fireplace create a resort-style oasis. Experience the ultimate in desert living, embracing nature's beauty from your own backyard.

1075 E Ranch Road Payson, AZ 85541

$1,395,000
9 Beds
8 Baths
3,690 SqFt
Status Active
MLS # 6746854
Property Type Single Family Residence
Price Type --
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9457 N 115th Street Scottsdale, AZ 85259

$1,395,000
3 Beds
2 Baths
2,126 SqFt
Status Active
MLS # 6755174
Property Type Single Family Residence
Price Type --
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8927 E Wethersfield Road Scottsdale, AZ 85260

$1,395,000
3 Beds
3 Baths
3,116 SqFt
Status Active Under Contract
MLS # 6750382
Property Type Single Family Residence
Price Type --
One of the best values in Cactus Corridor!! Charming 3 bedroom/3 bathroom home including separate entry guest casita located in a private gated community of 35 homes. Features include walk-in closets for each bedroom, custom cabinetry, granite counter tops, tile flooring throughout the great room/kitchen, open floor plan and spacious rear yard for entertaining. A gorgeous resort like pool with covered spa area make this hard-to-find home in a sought after Scottsdale location a one of a kind. Come see for yourself and make it yours today!

18676 N 95th Street Scottsdale, AZ 85255

$1,395,000
4 Beds
2 Baths
2,627 SqFt
Status Active Under Contract
MLS # 6773200
Property Type Single Family Residence
Price Type --
The best value for a fully remodeled home in all of prime North Scottsdale 85255, priced under $1.5M! This is the home you've been dreaming of, where modern luxury and timeless design meet to create an unparalleled living experience. Step inside and be immediately captivated by the elegance of high-end finishes, from the sleek wide-format porcelain tile floors to the stunning light fixtures that cast a warm, inviting glow throughout. The expansive 20-foot bifold patio doors blur the lines between indoor and outdoor living, revealing a resort-style backyard that feels like your own private retreat. Set on a premium lot that backs up to a peaceful wash, the privacy and serenity are unmatched, offering you a sanctuary from the hustle and bustle. The vaulted ceilings and open-concept design create an expansive, airy atmosphere that invites you to entertain with ease. Imagine the heart of your home gourmet kitchen with luxurious quartz countertops, top-of-the-line stainless steel appliances, a massive walk-in pantry, and cabinetry that seems to go on forever. This is where holiday dinners, weekend brunches, and everyday moments turn into lasting memories with friends and family. The split floor plan offers the ultimate in privacy. Your primary suite is a haven of tranquility, with natural light flooding in from a private exit to the backyard. Wake up to the peace of your surroundings, and retreat to your en-suite bath, where double vanities and a walk-in shower await your daily spa-like ritual. A custom walk-in closet ensures everything has its place, making organization effortless. With three additional spacious bedrooms, a beautifully updated second bathroom, and ample room for family, guests, or even a home office, this home delivers everything you could want. Adding to the appeal, the garage features epoxy floors, combining durability with a sleek, modern look perfect for keeping your vehicles and storage in pristine condition. Perched in one of North Scottsdale's most sought-after neighborhoods, this home is surrounded by the finest dining, shopping, spas, and golf courses the area has to offer. With easy access to the 101 freeway and views of the stunning McDowell Mountains, the lifestyle here is simply unrivaled. This isn't just a house, it's the ultimate North Scottsdale dream home, where every detail is designed to elevate your life. Come experience it for yourself and claim the lifestyle you've always wanted. Schedule your showing today!

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