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.

What’s Your Home Worth?

Search for Your New Home

25824 S 194th Street Queen Creek, AZ 85142

$1,275,000
5 Beds
3.5 Baths
3,158 SqFt
Status Active
MLS # 6780857
Property Type Single Family Residence
Price Type --
Country living at its best on the Gilbert/Queen Creek border*Incredible custom home on a 1.18 acres. County island lot. NO HOA*RV gate and plenty of space for a future workshop/RV garage/ADU....options are endless*Beautifully landscaped yard featuring a resort style pool with slide, grotto, spill over spa, outdoor kitchen, huge covered patio for outdoor living, Turf landscaping that includes your own putting green! Remodeled gourmet kitchen offers stainless steel appliances, white shaker cabs, quartz c-tops, pantry, and an island*Formal dining room, office, and a spacious great room perfect for entertaining. Close to highly rated schools, shopping, restaurants, and entertainment.

12243 N 58th Street Scottsdale, AZ 85254

$1,275,000
4 Beds
2 Baths
2,134 SqFt
Status Active
MLS # 6786494
Property Type Single Family Residence
Price Type --
Just WOW! Prepare to be captivated by this absolute beauty & mesmerizing attention to detail this masterpiece showcases! It displays a lovely curb appeal highlighted by a 2-car side garage, and an oversized RV storage area for your toys. Meticulously maintained interior with clean lines promotes a modern feel & elegance. Bright living room beckons you to unwind, while the dining area, equipped with a delightful fireplace, is ideal for hosting special occasions. At the heart of the home lies the gourmet kitchen, thoughtfully designed with plenty of white cabinets & cupboards, granite counters, a breakfast bar, subway tile backsplash, and top-of-the-range stainless steel appliances. Split Floorplan with large owner's retreat is a sanctuary boasting direct outdoor access and an ensuite. GREAT LOCATION, NEAR SHOPPING, RESTAURANTS, GOLF COURSES, CASINO, HOSPITALS, AIRPORTS, 51 AND 101, PARKS AND MUCH MORE!!!

7760 E Carefree Drive Carefree, AZ 85377

$1,275,000
3 Beds
3 Baths
3,052 SqFt
Status Active
MLS # 6704258
Property Type Single Family Residence
Price Type --
Perfect Carefree home on a large interior corner lot with private back yard, views of Black Mountain and a large multi-level patio / pool area. Solid block construction on this Single Level light and airy updated home. Nicely appointed interior with kitchen and baths updated in 2015. New floors and paint throughout (2024). Kitchen has Granite Counter Tops, Undermount Chef's sink, Stainless Steel Dual Ovens and electric cooktop. Two large en-suite bedrooms, plus a third guest room. Spacious area off of kitchen can be used as a den or sitting area. Large pool recently updated and resurfaced with pebble tec. Quiet neighborhood is only ½ mile from town with easy access to grocery stores, restaurants, golf, and hiking trails.

5713 W Rowel Road Phoenix, AZ 85083

$1,275,000
5 Beds
4.5 Baths
4,796 SqFt
Status Active
MLS # 6729792
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the prestigious Stetson Valley! This spectacular hillside residence boasts breathtaking views of Ludden Mountain and offers privacy, making it an oasis in the desert. Outside, indulge in resort-style living with a sparkling heated pool with a large, covered patio. Built-in misters ensure comfort on sunny days. The motorized solar shades and an electric awning expand your outdoor entertainment options. A convenient full bathroom with exterior access completes the poolside amenities. The large front patio, paved in travertine, features built in misters and is gated for your privacy. Step inside to discover a beautifully appointed interior featuring a spacious dining room with a butler's pantry, perfect for hosting your family and friends. see more.. Step inside to discover a beautifully appointed interior featuring a spacious dining room with a butler's pantry, perfect for hosting your family and friends. The large kitchen, with a walk-in pantry and huge island, opens to the great room, which is highlighted by a stacked stone fireplace. Upstairs, the expansive owner's suite beckons with a private sitting area overlooking Ludden Mountain. Recently renovated, the ensuite bathroom is a sanctuary with a free-standing tub, his and her vanities, and spacious closets. A large loft area offers additional living space, while a full-size laundry room with cabinetry adds convenience. Four additional bedrooms include a jack-and-jill bathroom, ideal for family or guests, and a fourth and fifth bedroom split by the spacious loft, overlooking the city lights, near an office nook for added flexibility. Don't forget to watch the hot air balloons from front balcony! The 3 car garages are split car and feature epoxy floors, extended length, built-in storage and EV charger. You will also find the 75 gallon water heater and whole house filtration. This home is not just about luxury, but also functionality with modern upgrades including an EV charger, solar system, exterior ceramic paint for energy efficiency, solar shades, and updated AC. Recently refreshed interiors with fresh paint complete the picture of this well-maintained property. Experience the pinnacle of Arizona living in this home, where every detail has been carefully considered for comfort, convenience, and style. Don't miss your chance to own this exceptional residence in one of Phoenix's most desirable neighborhoods.

8874 E Flathorn Drive Scottsdale, AZ 85255

$1,275,000
3 Beds
2 Baths
2,003 SqFt
Status Active
MLS # 6729431
Property Type Single Family Residence
Price Type --
NEW PRICE!!!Highly desirable DC Ranch location! Wonderful single level patio home in gated community, surrounded by open space & beautiful homes w/all the great DC Ranch amenities! Recently refreshed w/new paint & wood floors in bedrooms. You'll love the great rm floor plan/totally open to kitchen & dining rms. High ceilings add to the openness of this home. You'll love the kitchen w/it's huge island/granite counters & gorgeous custom alder cabinets/gas range/wall oven & microwave/sub zero fridge & walk in pantry! 3 split bedrms / lg master suite w/exit to yard/double vanity & 2 walk in closets/separate tub & shower/Murphy bed in 2nd bdrm/Built in desk in hallway/ nice laundry room w/sinks & lots of storage/ Solid alder doors/Private yard W/spa &/water feature./Built in BBQ/2 car garage. HOA fee includes access to the DC Ranch amenities.

73 W Lewis Avenue Phoenix, AZ 85003

$1,275,000
3 Beds
3 Baths
3,156 SqFt
Status Active
MLS # 6750614
Property Type Single Family Residence
Price Type --
Welcome to Willo!! Discover this enchanting 3 bedroom, 3 bathroom Bungalow in the Willo Historic District, a testament to architectural grace and modern comfort. Built by A L Johnson in 1925, this home spans a generous 2492 sf + a 664 square foot basement. The property also includes a detached two-car garage. The home's facade boasts classic design elements such as river rock porch details and decorative trim, meticulously preserved to honor its historical significance. Step inside to a world where heritage meets contemporary living, highlighted by a mix of newly refinished hardwood, tile, and carpet flooring that complements the abundance of natural light and exquisite details found throughout. A large front porch welcomes you, leading to a versatile flex roo ideal as a study or office adjacent to a formal living room with a striking brick fireplace. This opens to an elegant dining room adorned with stunning stained glass windows, creating a perfect backdrop for memorable gatherings. The kitchen is a chef's delight, equipped with stainless steel appliances and ample storage. The family room is bright and airy, fostering a perfect setting for relaxation or entertainment. Upstairs, the master suite is a retreat within itself, featuring a remarkable window and ceiling design, a custom-tiled bathroom with dual sinks, walk-in shower, standalone tub, and two closets. Two additional bedrooms and bathrooms offer spacious and beautifully detailed accommodations. The basement is an ideal space for a den, home theatre, or game room, offering additional flexible living space. This amazing home even has all new windows. Step outside to a backyard oasis complete with lush landscaping, a swimming pool, spa, and pergola perfect for enjoying the outdoors in privacy and style. As one of the first historic districts, Willo is steps away from the light rail, incredible dining, culture and amenities Phx offer. This home was featured in the Willo Historic District Home Tour of 2024. It is not just a residence but a piece of history ready to be cherished by its new owners. Embrace the blend of historical charm and modern convenience in this truly gorgeous landmark home.

8861 W Hatfield Road Peoria, AZ 85383

$1,275,000
5 Beds
4 Baths
3,513 SqFt
Status Active
MLS # 6754452
Property Type Single Family Residence
Price Type --
Wow, just WOW! Incredible property with breathtaking mountain views! Be greeted by a great curb appeal w/manicured desert landscape, ample courtyard w/welcoming iron gate, and a sided 4-car garage w/paver driveway. Home exudes elegance throughout showcasing pre-wired surround sound, abundant natural light, a designer palette, and tasteful flooring - tile & wood in all the right places. Discover the thoughtfully laid-out open floor plan, making entertaining a bliss! The gourmet kitchen is a cook's delighting, featuring high-end SS appliances w/cooktop gas, beautiful staggered cabinetry, recessed & pendant lighting, a pantry, glass tile backsplash, and a big island with a breakfast bar. You'll love the separate family room paired with a fireplace, dry bar, & multi-sliding doors to the back Enter the large main bedroom to find outdoor access and a lavish ensuite that boasts dual granite sinks, a soaking tub, a shower w/dry-off area, & a walk-in closet w/built-ins. One secondary has its own bathroom for added comfort. But the true highlight is the spacious, RESORT-STYLE backyard! The space is an entertainer's dream, featuring a covered patio, well-lavers, putting green, play area, Pergola, misting system, gas fire pit, mature trees, horseshoe pit, and a sparkling pool w/spa combo for year-round enjoyment. This gem is a RARE find! Luxurious living at its finest!

1615 W Mandalay Lane Phoenix, AZ 85023

$1,275,000
3 Beds
3 Baths
3,684 SqFt
Status Active Under Contract
MLS # 6662837
Property Type Single Family Residence
Price Type --
Amazing Mountaintop home with incredible mountain and city views! Located in the gated Moon Mountain Vistas community this 3-bedroom 3 bath with an additional office will take your breath away. The property is over 1 acre on a mountain, and includes indoor/outdoor living spaces, a custom outdoor BBQ center, and outdoor fireplace. The serenity of the newly updated infinity pool and outdoor entertainment area welcomes you and your guests as you enjoy the beautiful Arizona sunsets. The interior of the home has been updated with new appliances, new carpet and new paint. The roof and water heater have also been recently replaced. The only thing missing is you!

18381 N 93rd Street Scottsdale, AZ 85255

$1,275,000
4 Beds
3 Baths
2,563 SqFt
Status Active Under Contract
MLS # 6751337
Property Type Single Family Residence
Price Type --
Beautiful family home in the highly coveted DC Ranch community. This is one of the few homes in the neighborhood with a private lot that backs to a wash with views of the McDowell mountains. This 4 bedroom and 3 full bath home features gorgeous hardwood floors, stainless steel appliances, white kitchen and open floor plan. The backyard boasts a large heated pool/spa and brand new turf. Upstairs offers 2 guest bedrooms and a loft area for the kids. The spacious primary suite has a large walk in shower and balcony with unobstructed mountain views. This gated neighborhood features 2 large parks offering plenty room for outdoor play and gatherings. You will also have access to the DC Ranch community pools, tennis/pickleball courts, and fitness center. Conveniently located close to Market Street, DC Ranch Crossing, the 101 freeway, and world class restaurants, shopping, golf and hiking.

15410 N 60th Street Scottsdale, AZ 85254

$1,275,000
4 Beds
3 Baths
2,883 SqFt
Status Active Under Contract
MLS # 6766387
Property Type Single Family Residence
Price Type --
Welcome to your dream retreat in the magic 85254 zip code! This fully furnished, designer-crafted home is a thriving Airbnb with back-to-back bookings, making it an excellent investment opportunity! Just minutes from Kierland Shopping Center, you'll enjoy convenience and luxury in one package. Step inside to discover gorgeous modern finishes that create an inviting ambiance. The outdoor space is an entertainer's dream, featuring a sparkling pool, relaxing hot tub, and a putting green. Stay active on the sport court, perfect for basketball or pickleball. The large covered outdoor kitchen is ideal for hosting gatherings, while the kiva-style fireplace sets the scene for cozy Arizona evenings. Additional highlights include a spacious open layout, ample natural light, and luxurious bedrooms!

7979 E Evening Glow Drive Scottsdale, AZ 85266

$1,275,000
3 Beds
3.5 Baths
2,800 SqFt
Status Active
MLS # 6696426
Property Type Single Family Residence
Price Type --
Truly a luxury home you don't want to miss. This impeccable 3 Bed/3.5 Bath Winfield home is move-in ready. Stylishly modern with custom renovations throughout. You will love the designer Kitchen with beautiful custom cabinets, pull-out drawers, stainless appliances and Quartz countertops and spacious island. The Owner's suite is bright and spacious with beautiful wood floors, separate entry to the patio, dual sinks and makeup vanity in the bathroom, modern roll-in shower, large linen closet and generous walk-in closet with beautiful custom closet system. Two ensuite guest rooms and a 3-car garage are an added benefit. Tile and wood flooring throughout. New roof in 2022. Solar panels offer remarkable electricity savings. Too many fabulous features to mention - please see Features Sheet

7298 E Brisa Drive Scottsdale, AZ 85266

$1,275,000 - 3Br/4Ba -  for Sale in Lot 19, Parcel B At Bellasera, Scottsdale
Open House
$1,275,000
3 Beds
3.5 Baths
2,826 SqFt
Status Active
MLS # 6780698
Property Type Single Family Residence
Price Type --
Experience luxury living in one of the most desirable models within the prestigious Bellasera community. This exquisite 3-bedroom, 3.5-bath home, complete with a casita and three-car garage, sets on a 19,000+ sq. ft. lot with north/south exposure. The property welcomes you with a private front patio in elegant Cantera stone, while the expansive back patio, also in Cantera stone, features powered sunshades and overlooks a meticulously landscaped yard with a new PVC underground watering system on a timer. The main house offers a spacious open-concept kitchen and family room with a cozy gas fireplace. The updated kitchen features stunning new quartzite countertops and soft-close cabinetry. The primary bedroom has been expanded to provide ample space, featuring windows with views of the patio and garden. Additional highlights include a second bedroom with bath and a versatile den/office that overlooks the front patio. The three car garage is equipped with built in cabinets and epoxy flooring, ensuring ample storage and convenience. A standout feature of this property is the separate casita, accessible through its own entrance. This private space offers a comfortable bedroom and full bath, ideal for guests or multi generational family members, ensuring they have their own quiet retreat. Bellasera's community amenities are unmatched, including a guarded gate, resort style swimming pool, spa, workout facility, tennis and pickle ball courts, hiking trails, and dog park. The community also hosts numerous monthly social events, fostering a vibrant and inclusive atmosphere. This home has been lovingly maintained and is truly move-in ready, presenting a rarer opportunity to enjoy luxurious living with outstanding community features.

Leave a Reply

Your email address will not be published.