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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16637 W La Reata Avenue Goodyear, AZ 85395

$1,249,900
3 Beds
3.5 Baths
3,170 SqFt
Status Active
MLS # 6727946
Property Type Single Family Residence
Price Type --
Privacy & Beauty define this home in a unique extra large cul-de-sac corner lot in the 55+ community of Pebble Creek! As you arrive, immediately standing out is the paved driveway and Iron entry door. As you enter the home you'll notice the 12' ceiling that give the Great Room an elegant feel along with the multi-slide pocket door that opens for indoor/outdoor living. Chefs kitchen with double oven, upgraded appliances, butlers pantry and & extra large island. Upgraded cabinets with uppers, unique cabinet hardware and quartz countertops through out. The master bathroom has been extended out 4' to allow a separate shower/bath in addition to more vanity space and more walk-in closet room. The home has so many added upgrades. Please look under attached documents! THIS HOME IS A MUST SEE!!

11082 E Mark Lane Scottsdale, AZ 85262

$1,249,900
4 Beds
4 Baths
3,691 SqFt
Status Active
MLS # 6746093
Property Type Single Family Residence
Price Type --
Discover this exceptional residence in one of Scottsdale's coveted neighborhoods, Troon North. Perfectly situated on a premium corner lot & backing to the open common area, this stunning home provides an ideal setting for privacy & tranquility. A welcoming courtyard entrance with authentic flagstone sets the stage for a thoughtfully designed main residence & separate guest casita, equipped with its own entrance, ensuite bath, wood shutters, wood tile and walk-in-closet. Once inside, the open floorplan features high ceilings, elegant finishes & an abundance of natural light. Desirable neutral tones were used throughout, including stone & hardwood floors, new carpet, wood shutters & a new electric Hunter Douglas blind. Additional main level amenities include an executive office, 2 generous sized BR's, 2 BA's, an oversized laundry room w/ storage, a laundry chute, sink & outdoor access, an oversized 2 CG w/ built in storage & generous amounts of closets & storage throughout the home. The HUGE primary suite encompasses the entire second level, offering an oversized bedroom with a sitting area and an additional bonus room, perfect for a home office or gym. A private covered patio provides stunning views of the surrounding Sonoran Desert. Enjoy the primary ensuite bath with a separate soaking tub and a nearly $20K remodeled shower. Enjoy resort style living in the backyard oasis, offering a sparkling pool, an extensive covered flagstone patio ideal for alfresco dining, desert landscaping and an abundance of privacy. Located in desirable Troon North, this home provides easy access to world-class golf courses, the famous Brown's Ranch Trailhead less than 1 mile away, and a wealth of local amenities. Whether you're relaxing in your private retreat or exploring the vibrant community, this property offers a lifestyle of luxury and convenience. Come and experience all that North Scottsdale has to offer!

5250 E Deer Valley Drive Unit 406 Phoenix, AZ 85054

$1,249,000
2 Beds
2.5 Baths
1,778 SqFt
Status Active
MLS # 6761328
Property Type Apartment
Price Type --
Upgrades galore in this fabulous 4th floor, full pool view condo at the The Luxe at Desert Ridge. Experience refined living in this luxury community. Exclusive clubhouse, meeting spaces, and entertaining kitchen. Relax in the theatre, stay fit in the 4400 sf gym, or swim in the Olympic-length pool. Just minutes from the Mayo Clinic, Scottsdale Quarter, Kierland Commons, and High Street with easy freeway access to the airport, downtown, and surrounding areas. Washer & Dryer convey. Light fixture in Guest Bedroom does not convey.

17617 W Rose Lane Waddell, AZ 85355

$1,249,000
4 Beds
3.5 Baths
3,232 SqFt
Status Active
MLS # 6771061
Property Type Single Family Residence
Price Type --
Stunning Ranch-Style Luxury Home with Horse Rights on 1.5 Acres! Welcome to your dream home, nestled on a sprawling 1.5-acre lot with horse rights and full irrigation. This meticulously crafted home offers 4 bedrooms, 3.5 bathrooms, and a 3-car garage complete with epoxy flooring. As you enter through the custom iron doors, you're greeted by a stunning open-concept layout featuring sleek white ceramic tile flooring throughout. The kitchen is a chef's delight with dark custom cabinets, white quartz countertops, sleek concrete countertops, and elegant gold fixtures. High-end stainless steel appliances, provide added convenience and a touch of luxury. The adjacent spacious laundry room offers extra storage and functionality. Come and visit before is long gone!

5213 W Soft Wind Drive Glendale, AZ 85310

$1,249,000
4 Beds
3 Baths
3,168 SqFt
Status Active
MLS # 6771456
Property Type Single Family Residence
Price Type --
This ranch-style home that sits just under an acre lot has amazing curb appeal and even more inside. A red brick circular driveway leads to an over-sized 3-car side entry garage, a 720sqft detached garage/workshop, and RV gate for all your recreational needs. The chef's kitchen displays granite counter-tops, Alder cabinets, a Sub-Zero fridge and a Dacor cooktop. Relax in the professionally landscaped backyard with a view of the mountains from the Pebble-Tec play pool. Truly, everything your heart desires.

15522 E Chicory Drive Fountain Hills, AZ 85268

$1,249,000
4 Beds
3 Baths
2,665 SqFt
Status Active
MLS # 6776333
Property Type Single Family Residence
Price Type --
TO BE BUILT Spec Home. All photos are of previously built homes. List of amenities specific to this property in documents tab. Completed home by this builder is available to be shown. Lavish finishes to be installed throughout! Kitchen to include recessed shaker style-stained grade cabinets with stained grade 3-inch-thick wood shelves at beverage center area with custom paneled backsplash. Uppers are 36-inch tall with 15-inch-tall cabinets with glass inserts stacked above. Quartz counters at all tops throughout. Island has waterfall edges to the floor at both ends & granite composite Blanco brand single bowl under mount sink with Delta brand black finish high arching faucet with pull down sprayer & soap dispenser at the sink. Upgraded Bosch brand stainless steel appliance package that includes wall microwave/convection oven combo, induction smooth top cooktop, stainless steel interior dishwasher with hidden controls, stainless hood liner, and a 36-inch side by side fridge. Also will include an under-mount beverage center in the kitchen area. Cabinets have high end soft close hardware on all drawers & doors. Custom 7-inch black or satin nickel hardware pulls on all doors/drawers. Light rail trim molding at underside of kitchen upper cabinets to hide the under-counter LED strip lighting & outlets that are mounted under the uppers to hide from view and keep outlets out of the decorative tiled back splash. 6 foot linear electric fireplace with oversized 36 x 24 inch porcelain tiles on the face and returns. Garage has aluminum flush paneled overhead doors that will have upgraded insulated panels with powder coated finish. Doors will have Wi Fi Lift Master garage door openers. It will also be prewired and piped for a future wall mount mini split HVAC system. Floors are epoxy coated with a full broadcast paint chip finish. AC system includes multiple returns & additional sensors as necessary to balance out the cooling and heating throughout the home. Fully landscaped front & rear yards with generous amounts of plants, bushes, cacti & large rip rap rock for drainage areas. Artificial turf section in backyard. Crushed granite at all areas with an automated timer clock for the watering system. Lighted steps at the front & side walkway to the rear yard with other spot lighting & pathway way lighting included. Concrete pavers used at the driveway, sidewalks, the front entry & back patio. Concrete paver walkway from side of garage to a paver area behind the garage for trash cans & other storage. Silver colored travertine pavers used at back patio.

7755 E Evening Glow Drive Scottsdale, AZ 85266

$1,249,000
3 Beds
3.5 Baths
2,736 SqFt
Status Active
MLS # 6753642
Property Type Single Family Residence
Price Type --
Elegant Desert Sanctuary in Winfield's Guard-Gated Community! Discover Desert living at its finest in this exceptional 3 bed, 3.5 bath, 3 car-garage home located within the prestigious guard-gated Winfield community in North Scottsdale and situated on a private cul-de-sac lot with gorgeous Mountain Views. This stunning residence seamlessly blends Southwest elegance with modern comforts such as two separate den/offices, making this the perfect ''work from home'' situation. As you step inside, be welcomed by soaring ceilings and a cozy gas fireplace anchoring the expansive living area. A custom wall featuring Italian Limestone with an integrated surround sound Control 4 TV system to elevate the space and all highlighted by energy-efficient LED lighting throughout. The gourmet kitchen is a chef's dream, featuring an electric range, custom cabinetry and a generous island perfect for meal prep and casual dining. The dining area, framed by expansive windows offers stunning desert views for a serene dining experience. The luxurious Master suite serves as your private retreat, complete with a walk-in closet, a spa-inspired en-suite bathroom with a soaking tub and a glass-enclosed shower. Both additional bedrooms are en-suite, offering privacy and comfort for family and guests, making this home ideal for those who appreciate their own private spaces. Step outside to your private desert oasis that boasts a spool, built-in grill, and covered patios extending from both the living area and master suite. This outdoor space, with front and back views of the serene Sonoran Desert is perfect for both tranquil mornings and starlit evenings. Practical mechanicals include a newer AC system, soft water filtration, a newer water heater, and a recently replaced garage door. The three-car garage is equipped with cabinets, a workshop area and a mobile AC unit in the third bay. The washer/dryer and garage refrigerator are all included, adding convenience for the new homeowner. Additional highlights included in this immaculately cared for gem are a freshly painted exterior, new toilets throughout, new ceiling fans, a half-bath in the hall and a convenient laundry sink. All these details come together in a residence that offers luxury, comfort, and functionality in one of Scottsdale's most coveted communities. Gently lived in and immaculately cared for this home is a true lock & leave making it the perfect Winter retreat or super easy day to day living. Ideally located to North Scottsdale's finest restaurants & shopping!

6166 N Scottsdale Road Paradise Valley, AZ 85253

$1,249,000
2 Beds
2 Baths
1,616 SqFt
Status Active
MLS # 6558270
Property Type Apartment
Price Type --
This 2nd floor unit opens the door to luxury living with its 2-bedroom layout, complemented by an office space with double doors, inviting an ambiance of openness and brightness. The floor-plan includes a eat-in kitchen outfitted with high-end Wolf and Viking appliances, a generous kitchen island, and a breakfast bar for casual dining. Comfort meets style in the bedrooms, each accompanied by its own ensuite bathroom. The master suite is a sanctuary of relaxation, presenting a large bathroom and a walk-in closet equipped with custom organizers. The second bedroom, positioned ideally for guests, sits close to the guest bath and laundry facilities Equipped with a cutting-edge automation system, this unit awaits your personal touch to become the smart home of your desire.

6803 E Main Street Unit 2210 Scottsdale, AZ 85251

$1,249,000
2 Beds
2 Baths
1,684 SqFt
Status Active
MLS # 6751253
Property Type Apartment
Price Type --
ABSOLUTELY GORGEOUS remodeled beauty with designer touches at every turn as well as the largest balcony of any unit at The Mark!Unit boasts so many upgrades including top of the line lighting throughout, the Entertainers Kitchen has been totally renovated to include marble countertops, 2 built in wine cooler's, new sink and fixtures as well as brand new appliances. TVs and Fire feature framed in by WI Appliance along with stunning custom chandeliers , motorized shades/plantation shutters, California Closet upgrades and so much more. The Mark features top of the line amenities which includes the STUNNING BRAND NEW roof top pool area, fitness center underground parking and Concierge. Valley Ho Room Service/Discount. OWNER WILL PREPAY FOR 1 YEAR OF HOA DUES WITH SUCCESSFUL CLOSE OF ESCROW

10731 N Sonora Vista Fountain Hills, AZ 85268

$1,249,000
4 Beds
3.5 Baths
3,637 SqFt
Status Active
MLS # 6743623
Property Type Single Family Residence
Price Type --
Prepare to enjoy breathtaking, unobstructed views from almost every room in your home. Step inside, passing through the entryway to the great room, where high ceilings and large windows capture the breathtaking views, from Red Mountain to the north, Four Peaks and Mazatzal Mountains, all the way to Superstition Mountains beyond the east valley. The great room comfortably connects the living room with the dining room and flows to the open kitchen, with abundant cabinet and counter space, large pantry, gas range, double-ovens, and Sub-Zero fridge. Just beyond the living room is the primary suite, with the ensuite bathroom and spacious walkin closet you would want in a home of this caliber. Also on the main level you'll find a guest bedroom with ensuite bathroom, laundry room, and a half bathroom. Don't miss the garage, with extra depth and 12' ceilings on the main 2-car garage, plus a separate third bay garage. Downstairs you'll find another ensuite guest bedroom and a huge office which could easily be an additional bedroom (currently no closet). These rooms are split by a family/game room with an impressive 4k LED projector and screen. The double-sliding doors to the back yard make this another great space for indoor/outdoor entertaining. Outside offers multiple areas to relax, with a balcony off the main living space, both covered and uncovered patios in the back yard, as well as a putting green, all of these of course with the idyllic panoramic Arizona views as your backdrop. Homes with these amazing features and stunning views don't come around often, come see it today!

8876 S Santa Elizabeth Drive Goodyear, AZ 85338

$1,249,000
5 Beds
4 Baths
5,070 SqFt
Status Active
MLS # 6753744
Property Type Single Family Residence
Price Type --
Welcome home to your very own piece of paradise nestled in the scenic Estrella Mountain foothills. This eclectic 5070 sq ft. custom home sits on 1.25 acres, and features a fully owned 25.6kw solar panel system. Just beyond the front door of this gorgeous home lies the courtyard, complete with a barbecue area and swimming pool. A winding concrete pathway leads you through your personal oasis to access both the 2 bed 1 bath casita and the additional 1 bed 1 bath casita- perfect for multigenerational living or generating additional income. Past the courtyard is the fully-featured primary residence, which includes a private office, 2nd bedroom, formal dining room, as well as a second-story deck to watch the Arizona sun set over the beautiful Estrella Mountains.... In the kitchen, the sleek granite countertops, luxury stainless steel appliances, and walk-in pantry integrate seamlessly with the family room, both a chef's dream and the pride of any avid entertainer. The primary bedroom features a double fireplace, a spiral staircase to the sunlit upstairs loft, and a New Orleans inspired en-suite bathroom with a step-up jetted hot tub, dual vanities, dual walk-in closets, and a luxurious walk-in shower. Don't miss this opportunity to live the resort lifestyle! HIGHLIGHTS OF ESTRELLA MOUNTAIN RANCH RESORT LIVING: 2 lakes (Yacht Club supplies paddle boats, kayaks) 2 Resident clubs houses w/fitness centers, AMAZING WATERPARK, plus 2 heated pools (1 lap pool) MILES AND MILES OF MOUNTAIN BIKING AND HIKING TRAILS. Golfing, Community Parks with Basketball and Tennis Courts, Pickle Ball, and Playgrounds. What are you waiting for?

24282 S 219th Street Queen Creek, AZ 85142

$1,249,000
4 Beds
2.5 Baths
3,196 SqFt
Status Active
MLS # 6763519
Property Type Single Family Residence
Price Type --
Welcome to Caleda by Toll Brothers, an exclusive gated enclave nestled in the heart of Queen Creek. This stunning 2022-built residence is a testament to luxury living and effortless entertaining. Perfectly situated in one of the area's most desirable communities, this home is just moments away from the region's best attractions—Schnepf Farms, the Queen Creek Olive Mill, Queen Creek Marketplace, the renowned Horseshoe Park and Equestrian Centre. Dine at local favorites like Caldwell County BBQ, San Tan Flat or your choice of many nearby restaurants. As you approach this beautifully designed home, the impressive entry beckons, welcoming you into an entertainer's dream. This is the perfect home for hosting unforgettable holidays, milestone celebrations, and intimate gatherings Inside, expansive stackable sliding doors in the kitchen, great room, and owner's suite blend indoor and outdoor living seamlessly. The gourmet kitchen boasts a stunning quartz waterfall island and an oversized refrigerator, creating the perfect space for culinary creations and casual dining alike. Elevate your home experience with a professionally installed home automation and theater system by iDesign, providing entertainment at your fingertips. Step outside to a backyard paradise, where every element has been meticulously crafted for relaxation and fun. Enjoy the warmth of the outdoor fireplace, complete with a TV and speakers for watching your favorite shows while lounging in the Arizona room. The sparkling pool and surrounding artificial turf, designed by Creative Environments, provide an oasis-like atmosphere, while the natural gas fire pit is perfect for cozy nights under the stars. With gas plumbing ready for your future outdoor kitchen, this space is primed for endless gatherings. The luxurious owner's suite offers a walk-through to the laundry from the master bath for ultimate convenience, while designer touches and thoughtful details can be found throughout the home. Large sliding doors feature professionally installed heat and sun-blocking drapery to keep the interior comfortable year-round. Even your pets have their own dedicated space with an artificial pet turf area. Located directly across from the community park and with easy access to the newly paved Queen Creek Wash trail, this home offers the perfect balance of private luxury and social connection within the exclusive Caleda community. Your dream home awaitswhere comfort, style, and entertainment meet in the heart of Queen Creek.

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