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

7635 E Camino Vivaz -- Scottsdale, AZ 85255

$1,250,000
3 Beds
3 Baths
2,220 SqFt
Status Active
MLS # 6752515
Property Type Single Family Residence
Price Type --
Newest home built in this private gated North Scottsdale community. No expense was spared on upgrades for this 3 bed, +den, 3 bath home with open floor plan. From the soaring 12 ft ceilings, to the gourmet Custom Chefs kitchen which has top of line GE Monogram appliances, double stacked custom cabinets, and waterfall countertops! Your spacious great room has natural light flooding in, along with gorgeous mountain views in the back yard. It is the perfect place to entertain guests! All of the bathrooms throughout the home have floor to ceiling upgraded tile showers, cabinets and granite counters to match! This smart home comes equipped with a Ring doorbell, alarm system, smart front door lock, thermostats, water flow monitoring system and you can open your garage door all from a simple app on your phone anywhere. Plus, your 2-car garage is epoxy coated and has an existing outlet for Electric Vehicle charging! Your new home also features beautiful front and backyard landscaping with automatic drip system and synthetic grass in the backyard. Close to the high end shopping, dining & events that North Scottsdale has to offer and only a short distance to numerous golf courses and easy access to hiking trails.Don't miss out on this fantastic home!

5243 E Grandview Road Scottsdale, AZ 85254

$1,250,000
4 Beds
2 Baths
2,414 SqFt
Status Active Under Contract
MLS # 6769660
Property Type Single Family Residence
Price Type --
Discover the ultimate Scottsdale lifestyle in this beautifully designed 4-bedroom, 2-bath home, situated on over 1/3 acre. Crafted for both comfort and entertainment, this property features an open-concept kitchen with granite countertops, stainless steel appliances, and a large island with seating for four. Enjoy versatile living spaces, including living, family and formal dining room accented by vaulted ceilings and recessed lighting. The primary suite is remodeled with 2 vanities, walk in shower, 2 walk in closets and private exit to pool. Relax by the large heated pool, dine under the covered pergola, and enjoy the lush surroundings of palm/fruit trees and large grassy areas. Located just minutes from Kierland Commons, Scottsdale Quarter, premier golf courses, and hiking trail

10249 N 58th Place Paradise Valley, AZ 85253

$1,250,000
5 Beds
2 Baths
2,848 SqFt
Status Active Under Contract
MLS # 6765872
Property Type Single Family Residence
Price Type --
Country Estates home with mature landscaping and large private backyard. This Paradise Valley 5 bedroom, 2 bath home is the perfect blank canvas for your family. Open concept living, dining, and kitchen with stainless steel appliances, island, and travertine floors with additional space for informal dining. Entertain family and friends in the spacious backyard with custom pool and expanded deck, large grass areas, covered patio, and citrus and palm trees. Located minutes away from Paradise Valley and Scottsdale's top resorts, golf, hiking, dining, and shopping.

11776 N 81st Street Scottsdale, AZ 85260

$1,250,000
4 Beds
3 Baths
2,472 SqFt
Status Active Under Contract
MLS # 6736662
Property Type Single Family Residence
Price Type --
Easily one of the BEST INTERIOR LOTS in the subdivision. Home has elevated views of the water and Golf Course. Super quiet and private interior optimal lot with only one home sharing lot line! This is a stunner complete with private pool and spa. Home also boasts a detached casita with full bath that is 399 SF not included in the 2472 SF Count. Better hurry as these properties sell fast!! Priced to SELL!!

5088 S Ponderosa Drive Gilbert, AZ 85298

$1,250,000
4 Beds
3.5 Baths
3,501 SqFt
Status Active
MLS # 6764089
Property Type Single Family Residence
Price Type --
Your dream home is here in The Bridges! This stunning property has been beautifully maintained and updated, perfectly balancing comfort and elegance. Offering 4 bedrooms & 3.5 bathrooms, it provides ample space for family, friends, or guests. Great curb appeal with stone accent details, artificial turf, and beautiful landscaping. The 3-car garage is equipped with a Tesla charger and the private courtyard is an excellent spot for your morning coffee! As you step inside, you'll be greeted by an inviting open floor plan filled with natural light. The spacious living room flows seamlessly into a modern kitchen, making gathering a bliss! Large island, granite counters & backsplash, ample wood cabinetry, a dry bar w/wine rack, and SS appliances w/cooktop gas make up the culinary space. Formal dining room is ideal for entertaining or cozy dinners! The versatile den and the office area w/built-in desk are added perks. Gorgeous accent walls create a fabulous atmosphere, enhanced by plantation shutters, stylish tile fixtures, tall ceilings, and tasteful flooring. Retreat to the luxurious primary suite complete with exterior door leading to the private oasis! Also including a gorgeous bathroom that boasts a walk-in closet, soaking tub, tiled separate shower, and a large vanity w/dual sinks. Laundry room with a sink & cabinetry for your convenience. But the true highlight is the backyard oasis! Perfect for outdoor entertaining or quiet evenings under the stars, it showcases a covered patio, fireplace, artificial turf, and a welcoming pool with a baja shelf. Located just minutes from Gilbert Regional Park and steps from the Bridges neighborhood park, this home offers convenience without sacrificing tranquility. Don't miss the opportunity to make this charming residence your own!

24007 S Lindsay Road Chandler, AZ 85249

$1,250,000
4 Beds
3 Baths
2,153 SqFt
Status Active
MLS # 6783178
Property Type Single Family Residence
Price Type --
LOCATION LOCATION !! LAST CHANCE to own 1 acre lot with house in an irrigated lot, in PRIME LOCATION in Southeast Chandler! Property consists of water source is a shared well and City water is available at the curbside. Inside you will find 4 bedrooms, 3 baths, formal sunken living room, family room with fireplace and a kitchen with granite countertops. Master bedroom has a walk in closet. Two secondary bedrooms have private exit to the pool area. Updates from original build include windows and roof.

1550 W Olney Avenue Phoenix, AZ 85041

$1,250,000 - 5Br/5Ba -  for Sale in -, Phoenix
Open House
$1,250,000
5 Beds
4.5 Baths
3,471 SqFt
Status Active
MLS # 6770009
Property Type Single Family Residence
Price Type --
Impressive long palm tree lined circular driveway to a private estate with peace and quiet, privacy and 360 degree views of the city lights and mountains! Enter through an 8 foot by 9 foot, arched custom wrought iron door. Open modern floor plan with a gourmet European kitchen that features large island, dovetail soft closing cabinets, Bosch Dbl Ovens, Bosch 5 burner gas cooktop, built in Bosch Coffee/Espresso machine, LG limited edition 6 door fridge, Quartz countertops, hammered copper sink and walk in pantry with deep freezer. 3 car garage, 3rd has a mini split so it can be used as a shop or gym. Separate 4th garage with a 2 car carport, greenhouse, 20x40 pool and gas, glass firepit, full 608 sf guest casita with bedroom, bath and kitchenette. Plenty of parking and room for toys or horses No HOA. This home has views from every room, high end fixtures, custom closet systems, and plenty of storage. Centrally located close to downtown, ASU, Airport and east and west valley. This is desert living at its finest, enjoy the sunsets, city lights and the natural desert. South Mountain Park is in your backyard for hiking, biking, horseback riding. Square footage, 3471 includes guest house (2863 + 608 = 3471). Room count includes house and guest house (Bdrm: Home 4, guest house 1; Bath: home 3.5, guest house 1)

4027 N 45th Place Phoenix, AZ 85018

$1,250,000 - 3Br/2Ba -  for Sale in Windemere, Phoenix
Open House
New
$1,250,000
3 Beds
2 Baths
2,214 SqFt
Status Active
MLS # 6788477
Property Type Single Family Residence
Price Type --
Discover this one-of-a-kind, Ralph Haver Mid-Century home in the heart of Arcadia! Situated on a premium corner lot, this property impresses with its striking curb appeal and contemporary design. Inside, the open floor plan features vaulted ceilings, sleek epoxy flooring, and expansive floor to ceiling glass windows that seamlessly blend indoor and outdoor living. Recent upgrades include beautifully renovated bathrooms, updated electrical and plumbing systems, added storage room, a tankless water heater, and custom lighting. The home also features a versatile bonus room—perfect as a 4th bedroom, home office, game room, or dining space—with exterior access for added convenience. Step outside to a low-maintenance backyard oasis with artificial turf, a gas firepit, and a refreshing PebbleTec pool. This home embodies a minimalist's dream with its attention to detail and functional design. As added value, the property comes with permit-approved architectural plans for a 1,014 square-foot addition. Zoned for both business and residential use, it offers endless opportunities for the new owner. Ideally located near popular dining, entertainment, and shopping, and just minutes from Old Town Scottsdale, this gem is a must-see!

14011 N 48th Place Scottsdale, AZ 85254

$1,250,000 - 4Br/3Ba -  for Sale in Paradise Village North Unit One Lot 1-83 Tr A, Scottsdale
Open House
$1,250,000
4 Beds
2.5 Baths
2,714 SqFt
Status Active
MLS # 6776824
Property Type Single Family Residence
Price Type --
Shows like in a magazine and located in the magic 85254 Scottsdale zip code! Property features gorgeous entry with wood planked beam vaulted ceilings & dramatic 2 way fireplace. Highly desirable split floor plan with chef's kitchen with huge island, stainless appliances & cook hood, eat-at bar for 4, farmhouse sink, double ovens, self-closing drawers & cabinetry w/ pull-outs. Spacious master bedroom boasts window seat, two walk-in closets & large sitting room with French door exit. Master bath features hand hammered nickel sinks, walk in shower and large soaker tub. Modern warm ceramic wood-like flooring throughout. Back yard oasis ideal for entertaining! Private Pool, Lush lawn, paver patio with fire pit, ramada with built-in grill. Prime location & minutes from Desert Ridge & Kierland!

7635 E Camino Vivaz -- Scottsdale, AZ 85255

$1,250,000 - 3Br/3Ba -  for Sale in Paseo At Pinnacle Peak, Scottsdale
Open House
New
$1,250,000
3 Beds
3 Baths
2,220 SqFt
Status Active
MLS # 6788784
Property Type Single Family Residence
Price Type --
This gorgeous, single story 3 bed, 3 bath home is located in the boutique, gated community of Paseo at Pinnacle Peak. Newly built in 2022 and upgraded to the fullest extent, at home you'll enjoy 12' ceilings, a chef's kitchen with custom cabinetry, GE Monogram appliances and waterfall counter tops, and upgraded bedrooms and bathrooms throughout. Featuring sweeping mountain views to the East, the yard was designed to be comfortable and low maintenance with an automatic drip system in the front and turf in the back. Numerous restaurants, retail shops, golf courses walking paths and hiking trails are all within 5 minutes!

2367 W Oakwood Drive Prescott, AZ 86305

$1,249,900
5 Beds
6 Baths
4,987 SqFt
Status Active Under Contract
MLS # 6768023
Property Type Single Family Residence
Price Type --
Your dream home awaits in the prestigious, gated community of Vista Del Cerro, just a short distance from downtown Prescott. This stunning Tuscan-inspired estate offers everything you've been searching for, with sweeping views of Thumb Butte & the Prescott National Forest, creating a breathtaking backdrop for this main-level living retreat. The home's soaring ceilings, elegant designer touches, and luxurious finishes are sure to captivate from the moment you step inside. Upon entry, you'll be greeted by an open-concept floor plan that effortlessly flows from one room to the next. Expansive picture windows, crowned by clerestory windows, fill the great room with natural light & frame the awe-inspiring views. At the heart of this room is a gas fireplace set within brick & custom cabinetry. The chef's kitchen is nothing short of spectacular, featuring professional-grade appliances, including a 6-burner gas cooktop with an integrated griddle, all encased in a brick surround. High-volume ceilings, adorned with rustic wood beams, pair beautifully with the black antique-finished cabinets. The centerpiece of the kitchen is a generous island with a breakfast bar, complemented by a large walk-in pantry. On the main level, you'll find three well-appointed bedroom suites. The primary suite is a sanctuary of luxury, with floor-to-ceiling French doors and picture windows that perfectly capture the panoramic views. The spa-like ensuite bath boasts a jetted tub, dual vanities, custom-tiled walk-in shower, and a spacious walk-in closet, providing both elegance and comfort. Two additional junior suites, along with a dedicated office, laundry room, and powder room, complete the main level. Step outside onto the expansive hardwood deck, an entertainer's dream with ample space for gatherings, where you can savor Arizona's stunning sunsets over the mountains. The lower level is equally impressive, featuring a large family or game room with a wet bar, ideal for hosting guests. This room showcases floor-to-ceiling windows with access to the lower deck, where the sweeping views continue. Additionally, there is a fourth bedroom and bathroom on this level, offering privacy and flexibility for family or visitors. One of the home's standout features is the attached casita/in-law suite, accessible from either the lower deck or the stairs beyond the garage. Complete with its own kitchenette, bathroom, laundry closet, and a spacious open living area, the casita is perfect for long-term guests or multigenerational living. The property also includes a deep 3-car garage, with plenty of space for storage or a workshop, as well as a convenient dog run located next to the casita.

458 W Rock Lane Lakeside, AZ 85929

$1,249,900
4 Beds
4 Baths
3,510 SqFt
Status Active
MLS # 6689402
Property Type Single Family Residence
Price Type --
Immerse yourself in the beauty of the White Mountains with this beautiful 4-bedroom, 4-bathroom Pinetop-Lakeside residence. Fronting Edler Lake in front and the U.S. Forest Service in back, this cedar-sided home is surrounded by nature, where wildlife abounds. At over 3500SF, 2 spacious decks, plus a patio, this is luxury mountain living at its finest. Spend your days hiking, fishing, kayaking, horseback riding, biking, skiing, and more. Providing an ''in the forest'' feeling, the property is very conveniently minutes from everything. The property currently operates as a vacation rental, with a strong history of income. Make it your own home or secondary residence, continue to operate it as a vacation rental, or do a combination of both. Furnishing may convey by separate bill of sale.

Leave a Reply

Your email address will not be published.