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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12007 W Southern Avenue Tolleson, AZ 85353

$1,150,000
4 Beds
3.5 Baths
3,000 SqFt
Status Active
MLS # 6594950
Property Type Single Family Residence
Price Type --
Welcome to your new 4-bedroom home, with an expansive 2.229-acre lot! A large driveway with an RV gate & RV parking leads you to a 3-car side garage and laundry room with lots of storage. All-encompassing interior features, fireplace in the living & dining room for a warm & inviting ambiance. Wide open kitchen for entertaining, Granite countertops in ample chefs' kitchen with large island granite counters throughout, a built-in desk, a travertine backsplash, gorgeous cabinetry, a center island w/breakfast bar accentuating the flexibility of the space. Large custom granite dining table. Split 4-bedroom plan with open family/dining area offers direct access to the backyard, a master walk-in closet, & a spa-like ensuite. The ensuite includes dual sinks, an enclosed rain shower and soaking claw tub, dual sink vanities, a separate tub and shower. This home has beautiful floors, 10ft ceilings, 8ft solid wood knotty Alder doors, ceiling fans & recessed lighting. Spacious bedrooms & large ample closets. Don't let this rare property pass you by! Buyer and Buyers Agent to verify, all facts, figures and zoning.

11626 S Appaloosa Drive Phoenix, AZ 85044

$1,150,000
5 Beds
3 Baths
3,649 SqFt
Status Active
MLS # 6669571
Property Type Single Family Residence
Price Type --
Located in the Equestrian Estates Custom home neighborhood. Original Owner, the home has been meticulously maintained and updated, Great mountain views from both levels. Footsteps away from hiking and biking in the desert preserve. Large backyard for entertainment and family activities. Mature citrus trees. Recently remodeled pool and deck. Newer roof, well insulated home for energy savings. newer Trane variable speed hvacs. Custom knotty alder cabinets and doors, new floors, kitchen and master bedroom/bath remodel, ionization water system, new paint, bar in family room, propane fireplaces in family room and master suite. ceiling fans throughout, Open floor plan, great neighborhood. Location, location, location!

22020 E Stoney Vista Drive Queen Creek, AZ 85142

$1,150,000
3 Beds
2.5 Baths
2,474 SqFt
Status Active
MLS # 6691837
Property Type Single Family Residence
Price Type --
This horse property is nestled on just under 2 acres of land! The home features 3 BR plus an office & 2.5 bathrooms. Cozy up by the wood-burning fireplace in the spacious living area, highlighted by vaulted ceilings. The split floor plan offers privacy, while the attached 2-car garage provides convenience. Step outside to a large covered patio, perfect for enjoying the serene surroundings. The property also boasts a 1350 sq foot detached shop/4-car garage, covered RV parking, additional covered parking, and separate storage. For your equine friends, there's a lot to love: the irrigated lot features a tack room with electrical, a hay shed/barn, round pen, and 2 covered stalls. Located near the Horseshoe Park & Equestrian Center, Schnepf Farms, and several golf courses, you'll enjoy easy access to shopping and dining at Queen Creek Marketplace, the Legacy Sports Complex and the Phoenix Mesa Gateway airport. Don't miss this opportunity to own your own piece of paradise in Queen Creek Arizona.

7646 E Miami Road Scottsdale, AZ 85258

$1,150,000
3 Beds
3 Baths
2,608 SqFt
Status Active
MLS # 6764337
Property Type Single Family Residence
Price Type --
Resort style Sandpiper! Soaring ceilings, neutral paint, with carpet and tile throughout. Open concept, upgraded kitchen feature white cabinets, stainless steel appliances, large center island/breakfast bar. Tons of cabinet space. Each bedroom is very spacious with sliding glass doors to your patio. SANDPIPER is a 24/7, resort style, guard gated community in the heart of SCOTTSDALE with 7 pools! It is surrounded by McCormick Ranch Golf Course and has easy access to restaurants, shopping, the greenbelt, Old Town, Fashion Square and more....

3717 E Appaloosa Road Gilbert, AZ 85296

$1,150,000
4 Beds
3 Baths
3,461 SqFt
Status Active
MLS # 6709046
Property Type Single Family Residence
Price Type --
Step into luxury living in Gilbert, Arizona with this exquisite four-bedroom, three-bathroom residence, boasting a den and a bonus room, meticulously crafted with upgrades throughout. Nestled in the tranquil neighborhood of Morrison Ranch, this home offers an unparalleled blend of comfort, style, and functionality. As you enter, you'll be greeted by an inviting ambiance, with an open-concept layout that seamlessly integrates the living, dining, and kitchen areas. The heart of the home, the gourmet kitchen, is a chef's dream, featuring Quartz countertops, designer stainless steel appliances including double ovens and gas cooktop, and upgraded cabinetry. Retreat to the spacious primary suite, where relaxation awaits. Pamper yourself in the luxurious ensuite bath, complete with huge walk in shower, and dual vanity sinks. Primary suite also features dual walk in closets! Three additional well-appointed bedrooms provide ample space for family members or guests, while the bonus room and den offer flexibility for a home office, playroom, game room or study. The allure of this home extends beyond its interior, with outdoor spaces designed for leisure and recreation. Enjoy the expansive patio, lush landscaping and heated pool. And don't forget the three car tandem garage! Conveniently located near schools, parks, shopping, and dining, this residence offers the perfect blend of suburban tranquility and urban convenience. With upgrades at every turn and a versatile floor plan to accommodate your lifestyle, this is truly a home where memories are made. Don't miss the opportunity to make it yours!

36648 N 27th Avenue Phoenix, AZ 85086

$1,150,000
4 Beds
3.5 Baths
3,667 SqFt
Status Active Under Contract
MLS # 6722360
Property Type Single Family Residence
Price Type --
Indulge in luxury and serenity at this pristine, never-lived-in Desert Hills home, situated on 1.25 acres with breathtaking mountain views. Experience seamless indoor-outdoor living in an open-concept layout. The gourmet kitchen boasts commercial-grade appliances, dual islands, a breakfast nook, and formal dining space — an entertainer's dream! Enjoy no HOA, no interior steps, wood accents throughout, and walk-in closets in every bedroom. The primary bath features a Jacuzzi-style tub, complemented by practical amenities such as a 4-car garage with 220v, a spacious laundry room with built-in cabinets and sink, and a back patio pre-wired for a hot tub. Recent upgrades include a finished block wall and staircase to the walk deck, enhancing this ideal desert retreat.

11722 S 38th Avenue Laveen, AZ 85339

$1,150,000
4 Beds
4.5 Baths
3,408 SqFt
Status Active
MLS # 6721960
Property Type Single Family Residence
Price Type --
This exquisite mountain estate is a home unlike any other in the area. Situated in one of the city's highest points, in an exclusive community on 1 ACRE of land. The interior has porcelain tile flooring throughout, soaring vaulted ceilings in the great room, and 10-foot ceilings elsewhere. Each of the 4 generous bedrooms features its own private ensuite bathroom and walk-in closets. Two large covered patios equipped with surround sound and misting systems. The large backyard provides the perfect canvas for a pool, a casita or other improvements. Additional features include an oversized 3-car garage, RV gate and a small open workshop.

10860 E Cactus View Circle Gold Canyon, AZ 85118

$1,150,000
3 Beds
4 Baths
3,661 SqFt
Status Active
MLS # 6757807
Property Type Single Family Residence
Price Type --
Enjoy breathtaking views of the Superstition Mountains from this beautifully upgraded 3 bed / 4 bath home. Designed for multi-generational living or perfect for having friends & family stay comfortably in their own private guest quarters. The open floor plan features a Great Room with hardwood floors, a stunning stone fireplace, & sliding glass doors on either side to provide seamless indoor/outdoor living & tons of natural light. The kitchen is a chef's dream w/ solid cherry cabinets, marble countertops, a Wolf 5-burner cooktop, double ovens, & multiple refrigeration options. The spacious island is perfect for entertaining. The main living area includes a large office (easily converted to a bedroom) w/ built-in solid cherry cabinetry & desk. The hall bath has a travertine shower, glass sink & wall faucet. The primary suite is a spacious & bright private oasis. The primary bath has travertine flooring, dual travertine sinks, dual shower w/ bench seating, jet tub, & private toilet room. Walk into your custom closet, designed by Classy Closets, w/ plenty of built-in storage. Bedroom 1 has sliding glass doors to the front patio-courtyard & a spacious walk-in closet, and bedroom 2 has sliding glass doors to the back patio & en-suite bath. The Main living area has a 2-car garage & the attached flex space also has its own 2-car garage w/ a workshop that is temperature controlled. Can be used for rental, in-law, or guest quarters, w/ its own living room w/ fireplace, full kitchen, and spacious bedrooms. Flex space features wood plantation shutters, solid cherry cabinets, Maytag double oven glass top stove, Fisher & Paykel dishwasher, & efficient washer & dryer, & jacuzzi bathtub. This single-story home is fully equipped with owned, automated solar (21kW) & three AC units. The expansive backyard features natural desert landscaping, a fire pit, and extensive covered patios. This property is zoned for two horses. You'll fall in love with the views and the endless possibilities this home offers!

3648 E Arabian Drive Gilbert, AZ 85296

$1,150,000
4 Beds
3 Baths
3,461 SqFt
Status Active
MLS # 6736773
Property Type Single Family Residence
Price Type --
Step into unparalleled elegance with this stunning residence, where sophistication meets comfort in every detail! Excellent curb appeal with striking stone detailing, a manicured front yard, a 3-car tandem garage, and an inviting front porch. Double doors open to a welcoming foyer leading to the formal living room! The great room is bathed in natural, recessed, and chic light fixtures, illuminating every corner. High ceilings, soothing paint tones, beautiful wood-plank tile flooring, and multi-sliders to the back patio are features you'll love. Meticulous attention to detail is presented in the upscale kitchen, fully equipped with a gas cooktop, double wall ovens, and a sizable island with a breakfast bar. Gleaming quartz counters, stylish tile backsplash, a walk-in pantry, and a plethora of white cabinetry with crown molding elevate the space. Explore a spacious bonus room ideal for a hobby or entertaining space! Find your sanctuary in the grand main suite, showcasing a soft carpet, a sitting area, a full ensuite with dual sinks, a step-in glass shower, a separate tub, and a walk-in closet. Discover the highlight of the outdoor space: a stunning crystal blue pool, the perfect oasis for those scorching summer days! Hurry! This gem will not disappoint!

48842 Riviera Place Ehrenberg, AZ 85334

$1,150,000
3 Beds
4 Baths
4,192 SqFt
Status Active
MLS # 6737737
Property Type Single Family Residence
Price Type --
Don't miss out on an exceptional opportunity to own a riverfront home in Arizona! This stunning home offers ample space for relaxation and comfort. Situated on the Colorado River, this property features breathtaking views from every angle. The fully finished basement provides additional living space perfect for entertaining or unwinding. Step outside to your own private putting green and incredible outside kitchen and bar perfect for gatherings with friends and family. The home comes fully furnished with high end finishes throughout. Located in an exclusive gated community, you'll have access to a private boat ramp and your own private dock. This home has an elevated boat garage and offers the ultimate in riverfront living. Come and live your best life on the river!

1484 Creekview -- Prescott, AZ 86305

$1,150,000
3 Beds
4 Baths
3,040 SqFt
Status Active
MLS # 6776198
Property Type Single Family Residence
Price Type --
Discover luxury living at its finest in this exquisite single-level home, perched in the prestigious Southview community & offering breathtaking views of the Granite Dells & the National Forest. This highly desirable Santa Fe-style residence, with extensive upgrades & a spacious 3+ car garage, is ready for you to make it your own. From the moment you step inside, you'll be captivated by the soaring ceilings & a wall of windows that frame the stunning, sweeping views. Designed for entertaining, the gourmet kitchen features a gas cooktop, two full-size ovens, rich wood cabinetry, granite countertops, & a center island with a breakfast bar. A generously sized walk-in pantry adds ample storage space. The unique dining room, featuring a pergola-style surround, is perfect for entertaining. In addition to this elegant space, the home offers a breakfast bar, a cozy breakfast nook, and an impressive patio with a large Kiva fireplace, providing multiple options for both indoor and outdoor dining experiences. Each bedroom boasts its own ensuite bathroom, ensuring privacy and comfort. The master suite is the epitome of luxury, with a private gas fireplace, access to one of three outdoor patios featuring a serene water feature tucked among the boulders for ultimate privacy. The ensuite bath is equally impressive, featuring a soaking tub, custom tile walk-in shower, dual vanities with vessel sinks, dual walk-in closets, and a skylight that bathes the room in natural light. The 3-car garage comes complete with a workbench and extra storage. This home is filled with high-end finishes and thoughtful details throughout, embodying true luxury. To ensure the panoramic views remain unobstructed, the owners purchased the property in front, preserving this magnificent outlook just for you. With so many features to offer, this exceptional home is best experienced in person to fully appreciate its beauty and the unparalleled vistas.

1905 N Calle Maderas -- Mesa, AZ 85213

$1,150,000
6 Beds
5 Baths
4,263 SqFt
Status Active
MLS # 6785889
Property Type Single Family Residence
Price Type --
Custom 6 bdrm/5 baths on 1/2 acre lot in gated enclave of 36 homes. 7 car garage. Mature citrus. Flood irrigation. Split floorplan. Wood shutters. Oak flooring. Workshop. 3 fireplaces.

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