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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42023 N Bridlewood Way Phoenix, AZ 85086

$1,238,000 - 5Br/5Ba -  for Sale in Anthem Country Club Unit 4 Amd-cog Hill, Phoenix
Open House
$1,238,000
5 Beds
4.5 Baths
4,319 SqFt
Status Active
MLS # 6765496
Property Type Single Family Residence
Price Type --
This is one excellent deal!. Within 2 blocks of Persimmon Club House. New AC's, interior/exterior paint. 5 bedrooms+office+4 large garages! Custom cabinetry & fireplace. Entertainer's kitchen w/newer high-end appliances, quartz counters, attractive backsplash, ample cabinets & counter space. Large kitchen island. Walk in pantry. Dining room fits 10-12 at table. Huge primary w/HIS & HER vanities, jet Jacuzzi tub, walk-in shower, HIS & HER custom closets. Bedroom #2 w/full en-suite for guests or as additional in-home office. Separate wing for kids or grandparents includes bedroom #3, w/full en-suite; BR #4. BR #5 w/another full bathroom. Entertainer's back yard w/BBQ, fire pit, & covered patio. At this price, add pool of your dreams & still be under market value.

5250 E Deer Valley Drive Unit 348 Phoenix, AZ 85054

$1,237,899
2 Beds
2.5 Baths
1,781 SqFt
Status Active
MLS # 6783918
Property Type Apartment
Price Type --
''The Luxe at Desert Ridge'' NEW BUILD MODEL'' elegant modern luxury living. The Luxe offers resort style living at its finest. Spacious condo w/ beautiful interior upgrades, beautiful lighting, quartz countertops, tile floors main throughout, beautiful surround tile showers & bathroom floor, Upper & lower kitchen cabinets w/ lighting, laundry room with W/D and sink, oversized patio w/ built-in gas BBQ, underground gated parking w/ two stalls & large storage room, elevators from parking to all levels. Onsite amenities, beautiful Clubhouse with chef's kitchen, theatre room, private conference center, dining room for private dinner parties, lap pool/resort style pools, large fitness w/ top of line equipment, infra-red sauna, locker rooms & yoga studio.

14655 N 15th Avenue Phoenix, AZ 85023

$1,235,000
3 Beds
3.5 Baths
3,718 SqFt
Status Active Under Contract
MLS # 6738503
Property Type Single Family Residence
Price Type --
Assumable VA loan at 2.34% available (not just for vets)!! Welcome to your dreamy 3 bed, 3.5 bath hillside home nestled in the center of the prestigious 24/7 guard-gated community of Coral Gables Estates, with easy access to anywhere in the Valley! A custom 10-foot door welcomes you into a grand foyer and a stylish living and dining room. At the heart of the home is the expansive kitchen offering a Subzero refrigerator, warming drawer, custom built wine closet, & 8-foot island; perfect for entertaining! Open to the kitchen is the impressive family room with soaring ceilings & cozy fireplace. Relax in the spacious primary bedroom with sitting area & fireplace and a spa-style bathroom, including a heated tub with jets and a warming drawer for towels-so nice in the Winter! Split from the primary are 2 spacious bedrooms, each with ensuite bathrooms and walk in closets. Relax, entertain & enjoy Arizona outdoor living in the resort-style backyard that backs to the mountain with ever-changing natural landscape. Dine on the covered patio, play on the grass lawn (turf), kick back around the built in firepit with surround seating, or take a dip in the saltwater diving pool. You won't want to leave! The home also offers ample parking and loads of storage in the air-conditioned 3-car garage. Average monthly electric bill is only $119 due to Pearl Certification & energy efficient rated home (see the attached certification and appraisal report)!

2538 N 91st Place Mesa, AZ 85207

$1,235,000
4 Beds
3 Baths
2,983 SqFt
Status Active
MLS # 6745151
Property Type Single Family Residence
Price Type --
BUYER FAILED TO PERFORM! Welcome to this exquisite custom home built on a county island so it is secured and quiet but close to all modern conveniences. This 4 bedroom, 3 bath home with a 3 car garage will be sure to impress and is move-in ready. Excellent curb appeal and well manicured lawn welcome you home. Enter the iron and glass front door to a massive great room with vaulted ceilings with wood beams that also overlooks the thoughtfully designed back yard and mountain views. Luxury vinyl plank flooring throughout the entire home makes it great for keeping it clean and sanitary. Enjoy a large generational suite or home office with living area, kitchenette and bedroom attached to a full bath. It feels like its own studio apartment. The split floor plan offers privacy for the master retreat. The master is very generous in size and offers a luxurious spa-like bathroom with a large freestanding soaker tub with amazing mountain views right out your bathroom. Adding dual vanities, upgraded tile shower and 2 walk-in closets with custom built-ins are exactly what you would expect in a home of this caliber. Outside is a fully landscaped, eco-friendly backyard, with drips for plants and synthetic grass. Entertain for all of your upcoming bbq's and events with the large patio, built-in pergola, upgraded swimming spa, extensive paver patio and walking paths, fenced yard with RV gates to pull through, RV hook-ups and so much more. The over-sized 3 car garage and large drive with RV gates are also a nice addition. This beautiful custom home is move-in ready so do not miss your opportunity to call this home!

1417 E Cherrywood Place Chandler, AZ 85249

$1,230,745
4 Beds
3 Baths
2,828 SqFt
Status Active
MLS # 6782176
Property Type Single Family Residence
Price Type --
Furnished single-story model home in the gated community of Treeland. The home offers a Southwest exterior featuring 4 bedrooms, 3 bathrooms, a den, game room and attached 3-car garage. The kitchen features stainless steel built-in GE Monogram appliances including a 36'' gas cooktop and quartz countertops with a waterfall edge at the island. Other highlights include a 12' multi-slider at the great room, Sonoma painted black cabinets with stacked uppers, coffered ceiling in the foyer and primary suite, frameless walk-in shower at the primary bath, 6'' X 36'' wood look floor tile, extended dining room and covered patio, washer, dryer and 42'' GE Monogram refrigerator. Purchase now with delayed close of escrow targeted for the end of April, 2025, or earlier at Seller's discretion w/notice.

16229 E Blue Sky Drive Scottsdale, AZ 85262

$1,230,000
4 Beds
3.5 Baths
3,042 SqFt
Status Active
MLS # 6759183
Property Type Single Family Residence
Price Type --
Amazing custom home with horse privileges nestled in the breath taking mountain setting of North Scottsdale. This wide open floor plan is complete with huge fireplace, custom cabinetry in the great room and custom roller shades on every window. The kitchen is every chefs dream with built in stainless steel appliances, huge walk in pantry w/ prep area, giant waterfall- style kitchen island w/ quartz counters, real wood cabinetry and custom stone backsplash. You will find luxury hardwood and tile throughout the home. Enter the master retreat to find the amazing super shower, pedestal soaking tub, his & hers sinks and huge walk in closet. Oversized garage with custom built in cabinets. This acre lot has plenty of room for your pool, horse facility, shop and so much more.

8411 E Windrunner Drive Scottsdale, AZ 85255

$1,230,000 - 3Br/3Ba -  for Sale in Grayhawk Parcel 3k(a), Scottsdale
Open House
$1,230,000
3 Beds
3 Baths
2,552 SqFt
Status Active
MLS # 6773652
Property Type Single Family Residence
Price Type --
Welcome to this gorgeous Monterey home in Grayhawk's Talon Retreat, just steps away from the community heated Pool and Spa! This home has been completely remodeled with almost $300,000 in upgrades and Improvements in the last 4 years, including resurfaced roof in 2023 and TWO completely replaced HVAC systems in 2024! Checkout the Upgrades List in the Documents tab for the full list. The Retreat is a 24-hour guard gated neighborhood that is the epitome of luxury living in one of Scottsdale's premier Golf Communities. This home is absolutely turnkey, and it's perfect as a primary residence or as a winter retreat. The low maintenance backyard provides unparalleled privacy and peacefulness. When you enter this home, you are immediately greeted with lovely French oak wide plank flooring which runs through the main home and bedrooms. This large open room concept floor plan and 12 ft ceilings, maximizes the 2500 square feet, and the wall of glass and natural light, brings the outdoors inside! The kitchen has been completely remodeled with a large entertainer kitchen island, quartz countertops, Wolf and Sub-Zero appliances and a fabulous bay window breakfast nook. Did I mention how much natural light is in this home? You will be blown away by the outdoor / indoor living in this one of a kind property. The primary suite has been remodeled as well with a huge double vanity, top of the line fixtures, tile flooring, giant vanity mirror, and a floor to ceiling tile and glass shower. Open the barn door to find a large walk-in closet that has tons of organized space, and there are additional linen cabinets to meet all of your storage needs. The Primary bedroom has a slider door which has access to the backyard retreat. The front bedroom is another Primary bedroom with its own en-suite bathroom and walk- in closet. There is a large office or den space with fantastic built-in shelves and desk. This space could easily be enclosed to make a formal bedroom, because there is a third full bath right around the corner. The oversized laundry room has tons of cabinets, Quartz countertops, full size front load LG washer and dryer and a new mud sink and cabinet, and leads out to the two car garage with custom cabinets, a water filtration system, and a newer oversized water heater with recirculation pump. This property is truly one of a kind and has been lovingly cared for over the last 4 years.

7408 N 173rd Avenue Waddell, AZ 85355

$1,229,000
4 Beds
3.5 Baths
2,893 SqFt
Status Active
MLS # 6741446
Property Type Single Family Residence
Price Type --
This beautiful, newer home is nestled on nearly 2 acres, offering stunning mountain views. An energy-efficient masterpiece, it features fresh paint and fully paid solar panels! And expansive four car garage seamless connection to the main house featuring a sleek floor coating, abundance of excessive cabinets, complementary by the dedicated work area that invites creativity and organization. Each bedroom includes its own walk-in closet. Enjoy the charm of plantation shutters, energy-efficient doors, and wood-look tile flooring throughout. The spacious great room is ideal for relaxing evenings or lively gatherings. The gorgeous kitchen is a chef's dream, with ample white cabinetry accented by crown molding, recessed and pendant lighting, high-end graphite appliances, a water softener, a walk-in pantry, a mosaic tile backsplash, a prep island with breakfast bar and under-cabinet storage, plus sleek quartz countertops. to the grand owner's suite, featuring plush carpet, direct outdoor access, a private bath with his-and-her vanities, a designer tile shower, and two walk-in closets. Don't miss the large in-law suite, complete with its own entrance. Step outside to the expansive backyard, where you'll find a covered patio, built-in BBQ, brick pizza oven, and a 2,000 sq ft shop with dual 12' roll-up doors. Enjoy fruit trees and a sparkling pool with a swim-up bar. Additionally, the property includes a chicken coop, three shaded stalls, an arena, and plenty of space for horses or livestock. A waterline was conveniently run to the chicken coop, horse stalls, and the back of the property. The front planter area features its own timed drip system. This irrigated lot allows for easy watering of the entire property. Don't miss your chance to make this exceptional home your forever haven! Seller is willing to help with concessions!

15230 N San Diego Circle Fountain Hills, AZ 85268

$1,225,000
4 Beds
4 Baths
3,527 SqFt
Status Active
MLS # 6771982
Property Type Single Family Residence
Price Type --
Beautifully upgraded North Heights home featuring 4 bedrooms an office and 4 bathrooms. Enjoy a modern kitchen and stylish bathrooms, complemented by plantation shutters throughout. Backyard access is through three separate sets of French doors to a resort-style backyard oasis, showcasing natural rock formations and stunning views of McDowell Mountain and Red Rock. The expansive outdoor space features flagstone patios, faux grass, lush vegetation on a generous 1/3-acre lot, a gas fireplace, built-in BBQ with a refrigerator, and a Pebble-Tec pool and spa with a water feature. With exceptional curb appeal from a stone-faced fireplace and stylish wood-like garage doors, this residence is a must-see!

2603 W Espartero Way Phoenix, AZ 85086

$1,225,000
3 Beds
3.5 Baths
3,518 SqFt
Status Active
MLS # 6765868
Property Type Single Family Residence
Price Type --
Just voted BEST ON TOUR! Nestled among multi-million dollar homes with breathtaking mountain & desert vistas. This expansive residence in the highly coveted gated community of Tramonto Estates awaits. Step through an elegant courtyard entry adorned with stunning desert flora. This airy, open home is incredibly welcoming and boasts ample room for entertaining. A formal dining area and a charming living room with a fireplace and a stunning view of the incredible resort yard greet you upon entry. The kitchen and family room are seamlessly connected, providing easy access to the vibrant resort yard featuring a covered patio, artificial turf, built-in BBQ, firepit, and a sparkling pool & spa. Guests will appreciate the two spacious guest rooms, each with its own private ensuite. The owner's suite is inviting with a fireplace, ensuite, and a study with a private entrance ideal for a home office. This home has been immaculately maintained with Owned Solar Panels included(ask for details), a Tesla/EV outlet and new pool heater. You also have access to all of Tramonto's wonderful amenities including 2 pools, spas, tennis courts, parks and sand volleyball.

5849 E Le Marche Avenue Scottsdale, AZ 85254

$1,225,000
4 Beds
3 Baths
2,863 SqFt
Status Active
MLS # 6783189
Property Type Single Family Residence
Price Type --
Arizona Resort Style Living at It's Best! This home has it all! Remodeled Home with Open Floorplan. Front courtyard greets you! Wood like tile t/o the first Floor. Sunken living room was filled in/leveled for better flow & no step down.Huge family room / fireplace is open to the kitchen. Kitchen offering a large island w/breakfast bar, eat in area Pantry & windows to the backyard. Entertainer's Delight! One bedroom and full bath on 1st Floor.. Upstairs is the Elegant Primary Ensuite w/walk in closet, spa bathroom. Upstairs: 2 additional nice sized bedrooms a full bath. Great storage T/O! Escape to your own Resort yard w/Sparkling Pool. Paver patios, Turf, large covered patio . East side yard is RV/Toy storage w/cover canopy, & RV Gate.NO HOA!Near Everything Shopping/Restaurants/Mayo Near Desert Ridge, Mayo Hospital Campus, 101 Corridor, Kierland, Scottsdale Quarter and MORE! Well Respected Schools Nothing to do but move in! Sellers can close after 1/3/25.

7791 E Foxmore Lane Scottsdale, AZ 85258

$1,225,000
3 Beds
2.5 Baths
2,294 SqFt
Status Active
MLS # 6708894
Property Type Single Family Residence
Price Type --
Rare opportunity in the private gated Meridian community of Scottsdale's McCormick Ranch. Prime interior corner lot with N/S exposure- 1 block away from the heated community pool & spa. Every room has been meticulously redesigned/remodeled with only premium quality materials- including all new windows, custom cabinets, counters & kitchen island, 5-burner Italian stove, large format porcelain tile, new stairway, premium lighting, ceiling fans & fixtures, custom window coverings, closet built-ins, tankless water heater, water softener, R/O drinking water system, new interior & exterior paint & moldings, new garage epoxy, & more... The floorplan is perfectly designed for ground level living with large great room, primary suite, office & eat-in kitchen, vaulted ceilings, skylights plus 2 sets of sliding doors that open to a private backyard with large covered travertine-paved patio & low-maintenance turf. Loft space was enclosed adding a sitting area to 1 of 2 addt'l bedrooms plus full bath on the upper level. Don't miss this absolutely pristine home- perfectly located in one of the most coveted neighborhoods of Scottsdale.

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