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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10569 N 131st Street Scottsdale, AZ 85259

$1,390,000
4 Beds
3 Baths
2,446 SqFt
Status Active
MLS # 6751143
Property Type Single Family Residence
Price Type --
Welcome to this charming 4-bedroom, 3-bathroom home nestled in a highly sought-after Scottsdale. Located just off 131st and Shea Blvd, this spacious residence offers comfort and convenience. The living room features a cozy fireplace, perfect for relaxing evenings. The home sits on a beautifully landscaped lot, with a secure block wall providing privacy and tranquility. For those who love outdoor activities or need extra storage, the property boasts a detached RV garage, offering plenty of space for your RV, boat, or other toys. The layout offers generously sized bedrooms and bathrooms, ensuring ample room for all. This home's location is a true standout. It is just a short drive from the renowned Mayo Clinic, BASIS School, and the vibrant communities of Fountain Hills and Old Town.

2808 W Here To There Drive Phoenix, AZ 85086

$1,390,000
4 Beds
3.5 Baths
3,050 SqFt
Status Active
MLS # 6784852
Property Type Single Family Residence
Price Type --
Wow, just wow! Extraordinary new built on a one-acre lot in a growing neighborhood with mountain views & NO HOA!!! This impeccable custom abode showcases an exquisite curb appeal with a professionally designed landscape, 2 car garage, and RV garage. Discover a large open floor boasting a sleek design paired with soaring ceilings, recessed lighting, and wood flooring, promoting a modern feel. Abundant natural light floods every corner; the living room features a fireplace & multi-sliding doors that seamlessly connect the indoors & outdoors. The sophisticated kitchen outfitted with a hidden pantry, quartz backsplash & counters, new white & gold appliances, a pot filler faucet over the gas stove, and an oversized island with a breakfast bar, is worth a chef. The butler's pantry has space for a coffee station. The spacious owner's suite hosts 2 walk-in closets and a lavish ensuite with 2 vanities & a huge walk-in shower with tub. The second bedroom has its own bathroom, and bedrooms 3 & 4 share a Jack & Jill bathroom. Mud room, large laundry room, and garage with epoxy floor & custom LED lighting are worth mentioning. The massive backyard is a blank canvas awaiting your creative touch to be transformed into an entertainer's oasis. The covered patio stares directly at the Mnts. promising colorful sunsets. No expenses were spared to make this a unique gem!

6415 E Sunnyside Drive Scottsdale, AZ 85254

$1,390,000
4 Beds
2 Baths
1,855 SqFt
Status Active
MLS # 6745519
Property Type Single Family Residence
Price Type --
Come see this beautifully unique corner lot listing that possess a highly desired rare & scarcely available 1+acre lot size. Located in the sought after 85254 Scottsdale zip code, the existing 1962 ranch home and lot are being sold ''as-is.'' The current home is still livable, as desired by the new owner, with a new roof, floors, and bathroom updates. Found within the Desert Estates subdivision just north of Paradise Valley, this neighborhood and street contains an array of new custom homes and remodels. This lot is a must see for your new custom built Scottsdale home!

1960 E Blackhawk Drive Gilbert, AZ 85298

$1,390,000
4 Beds
4.5 Baths
4,343 SqFt
Status Active
MLS # 6783512
Property Type Single Family Residence
Price Type --
This stunning single-story estate home in the gated Marathon Ranch community in Gilbert offers a luxurious living experience with no detail overlooked from the time you enter your private courtyard's iron gate. This 4 bed, 4.5 bath, 4 car garage property is one of the largest in the community with elegant premium upgrades throughout and boasts a separate office, bonus flex room, a formal dining room and breakfast nook. The gourmet chef's kitchen and great room features soaring ceilings with double stacked glass front cabinets, Sub Zero built-in fridge, gas cooktop and 90 degree corner slider doors to the resort backyard with sparkling pool by Presidential Pools. Primary suite features dual closets, soaking tub and tiled shower. Homes this special are rare - don't miss the upgrades list!

37030 N Tree Lined Trail Carefree, AZ 85377

$1,390,000
4 Beds
3 Baths
3,924 SqFt
Status Active
MLS # 6692821
Property Type Single Family Residence
Price Type --
Stunning views from nearly every window in this 3924 square foot desert estate located on 1.49 acres! Experience luxury and privacy with miles of mountain views, city lights, and sunsets. Split floor plan and quality construction. A generous chef's kitchen features double ovens, wine fridge, island, and breakfast bar. The backyard oasis includes heated pool and spa with a waterfall feature, kiva fireplace, built-in bbq, and unobstructed views. Exquisite setting for relaxing or entertaining. 3 car garage, two way fireplace family room fireplace, and so much more. Experience the beauty of quintessential Arizona living

1911 N 169th Avenue Goodyear, AZ 85395

$1,390,000
3 Beds
2.5 Baths
3,134 SqFt
Status Active
MLS # 6729181
Property Type Single Family Residence
Price Type --
As you enter the home, you are immediately greeted by stunning upgrades and high-end finishes that are sure to impress. The expansive great room offers ample space for relaxation and entertaining, while the chef's kitchen is a dream come true for any culinary enthusiast. Step outside to your private oasis featuring a pristine saltwater pool, perfect for relaxation or entertaining. Golf enthusiasts will delight in the custom putting green, while the spacious covered patio and built-in BBQ area is ideal for hosting gatherings. The home's prime location offers breathtaking lake views, as well as stunning vistas of the 14th green and 15th tee box. Owned Solar. From top to bottom, this residence has been thoughtfully designed to offer unparalleled comfort and sophistication. It's truly a place where timeless charm meets modern luxury, creating an unmatched living experience for those lucky enough to call it home. Living in PebbleCreek Golf Community means access to top-notch amenities, including 3 world-class golf courses, 36 pickleball courts, and a vibrant social scene.

30009 N 58th Street Cave Creek, AZ 85331

$1,390,000
3 Beds
2.5 Baths
3,391 SqFt
Status Active
MLS # 6739883
Property Type Single Family Residence
Price Type --
Welcome to your private oasis—an exquisite estate nestled on two sprawling acres of lush, manicured grounds. Elegantly gated and approached by a long driveway, this meticulously maintained residence radiates pride of ownership. The estate boasts an impressive array of features, including ample parking space for all your vehicles and recreational toys. A generous 5-car parking area on a sturdy slab complements the massive 4-car garage with three doors, providing abundant room for your prized collection. The property offers additional potential with ample space for a guest house, detached garage, or even equestrian facilities. Step inside this impeccably appointed home and discover a thoughtfully designed split floor plan that effortlessly combines comfort and style. The chef's kitchen is a culinary dream, equipped with a Sub-Zero refrigerator and a Viking oven, perfect for crafting gourmet meals. Adjacent, the expansive family room invites relaxation with its warm fireplace and abundant natural light, creating an ideal space for gatherings and cozy evenings. The master suite serves as a sanctuary of luxury, featuring a spacious layout and an oversized bathroom that epitomizes indulgence. Enjoy the convenience of separate his and hers water closets, complete with a bidet, ensuring a private and serene retreat. Despite its serene, secluded feel, this remarkable estate offers the ultimate convenience, placing you just minutes away from vibrant shopping and dining options. Experience the perfect blend of seclusion and accessibility in this enchanting home that truly embodies the essence of refined living.

129 E Foothill Trail Williams, AZ 86046

$1,390,000
3 Beds
2 Baths
2,239 SqFt
Status Active
MLS # 6753024
Property Type Single Family Residence
Price Type --
Welcome to one of the most exquisite homes Williams has to offer. Nestled in the heart of the Pines and located in the highly desirable subdivision of Mountain Shadows. This custom owner build offers everything you are looking for in a mountain getaway. The sweeping, covered decks usher you in to the front entrance. The home offers vaulted ceilings with touches of tongue and groove. Three oversized bedrooms and a large den that could be converted into a bonus room. The primary bedroom is abundant in space and offers an en-suite bathroom. The primary bath has dual vanity's and a custom walk-in shower. The kitchen is a master piece featuring custom cabinets and custom granite backsplash that is a work of art. Move into the open living room and cozy up by the wood stove on those cold winter nights. The covered back deck overlooks the gorgeous scenery. The property also features an attached two car garage and a separate RV garage! Attached to the RV garage is separate guest quarters! With a partial bathroom and kitchen downstairs and a loft upstairs. The RV garage also features additional covered parking spaces for toys or equipment. The property is situated perfectly towards the end of the subdivision with easy access to the Forest Service. Just minutes from the surrounding lakes, forest and downtown Williams! This is a dream property in one of the most desirable areas of Williams! Don't miss out on this amazing opportunity!

3302 N 63rd Street Scottsdale, AZ 85251

$1,390,000 - 5Br/4Ba -  for Sale in Melrose Meadows 3 88-93, 102-104, 154-165, Scottsdale
Open House
$1,390,000
5 Beds
4 Baths
2,959 SqFt
Status Active
MLS # 6784323
Property Type Single Family Residence
Price Type --
Classically charming Ranch style home in one of the most coveted neighborhoods of 85251. Located on the southern border of Arcadia proper, minutes from Old Town Scottsdale & Fashion Square. This home is a rare find that caters to the diverse needs of modern families with opportunity for multi-generational living, lock & leave or income earning property. Impeccably maintained, this 5-bed, 4-bath residence offers timeless curb appeal in one of South Scottsdale's most idyllic neighborhoods. The heart of the home is an open-style living area, dining room & newly updated kitchen. With three of five bedrooms offering ensuite bathrooms, including a large primary with private office/sitting room and separate W/D. The 5th Bedroom provides flexibility to be used as a media room, den or playroom Enjoy outdoor entertaining with a deep covered patio, custom sunshades, built-in BBQ, and a fenced-in pool & easy maintenance yard. Air-conditioned, oversized 2-car garage PLUS two generous storage rooms. 2023 roof (with transferable warranty), newer A/Cs, Water Heater, Rain Gutters, updated electrical & lighting. Perfectly situated minutes from Fashion Square, Old Town, Arcadia High School/Veritas Charter School, Arizona Country Club. Camelback Mountain & Papago Park.

906 N Blazing Star Circle Payson, AZ 85541

$1,389,999
3 Beds
3.5 Baths
2,816 SqFt
Status Active Under Contract
MLS # 6784130
Property Type Single Family Residence
Price Type --
UNDER CONSTRUCTION...Come enjoy luxurious living in Chaparral Pines Golf Club, the prime gated development in Payson. Single-story living offers practical elegance in this classic 3-bedroom, 3.5-bathroom home. Enjoy spectacular mountain views. Step from the welcome mat into an interior embrace that includes hardwood flooring throughout most of the home, an open layout, neutral decor, and two fireplaces (living room and primary bedroom). The kitchen is bright with premium appliances, beautiful countertops, and ample pantry space. The kitchen opens seamlessly into the dining area and Great room. The calm primary bedroom includes a walk-in closet and a private bath with a tub and walk-in shower. The other two bedrooms are ensuite and ready to reflect your good taste in decor.

1108 N Indian Paintbrush Circle Payson, AZ 85541

$1,389,500
4 Beds
4 Baths
4,302 SqFt
Status Active
MLS # 6668344
Property Type Single Family Residence
Price Type --
Luxury log cabin mountain home. Situated inside the gates of Chaparral Pines Golf Club. A nearly 3/4-acre corner lot with its own private gate leading to the national forest. The unbelievable floor to ceiling stone fireplace is a centerpiece of this 4-bed, 4-bath, Alpine log home featuring a hickory-wood floor and a gourmet kitchen. The separate 2-bedroom guest quarters with a living room and a kitchenette allows family and friends to have their own space while visiting. The expansive back deck provides a relaxing sitting area to view all the visiting wildlife from the forest.

8224 E Angel Spirit Drive Scottsdale, AZ 85255

$1,389,000
3 Beds
2 Baths
2,306 SqFt
Status Active
MLS # 6745115
Property Type Single Family Residence
Price Type --
Step into a world of luxury with this sensationally remodeled home in the exclusive guard-gated Grayhawk community, where modern elegance meets timeless style. The moment you walk in, you'll be captivated by the rich wood plank laminate flooring that flows seamlessly throughout the space, setting the stage for what's to come. The heart of the home, the kitchen, is a masterpiece of design. Imagine creamy cabinetry that stretches all the way to the ceiling, adorned with the latest slimmer stile and rail, paired with chic contemporary hardware. The large quartz-topped island, with its contrasting base cabinetry, comfortably seats four—perfect for casual dining or entertaining. A large custom range hood crowns the space, complementing the striking contemporary backsplash, while brand-new stainless appliances, including a gourmet gas cooktop, complete this chef's dream. The great room is a showstopper, featuring a ceiling-height stacked stone accent wall that surrounds a sleek new linear fireplace. Built-in display shelving, designed to coordinate with the kitchen's features, adds both functionality and flair. Retreat to the primary bedroom suite, where luxury abounds. It boasts not one, but two walk-in closets, a huge tiled walk-in glass shower, and an extensive quartz vanity with dual sinks, flanked by linen cabinets. Every detail is designed for comfort and style. The guest bathroom makes a statement with its dramatic darker tile and quartz countertops, while the third bedroom, with double doors and a walk-in closet, offers versatility for any need. The laundry room is a dream, complete with a window, sink, and a generous walk-in pantry. Even the two-car garage is exceptional, featuring an epoxy floor and ample storage cabinets. Step outside to the backyard, and you'll find your private oasis with a recently remodeled spool, an elevated seating area, a covered patio, and lush landscaping that invites relaxation. Living in this Talon Retreat home with guard-gated entry is like being on a permanent vacation with access to community amenities such as a pool and spa, grassy play area for children and pets, tennis courts, walking trails, and the breathtaking McDowell Mountain setting. Plus, you're just steps away from two world-class Grayhawk golf courses. This is more than a home; it's a lifestyle.

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