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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12728 E Jenan Drive Scottsdale, AZ 85259

$1,125,000
3 Beds
2.5 Baths
2,879 SqFt
Status Active
MLS # 6785953
Property Type Single Family Residence
Price Type --
Have you been looking for a great home in a great neighborhood? Search no more! This beautifully renovated 1-level home nestled at the base of the McDowell Mountains in Scottsdale's Via Linda corridor shines of pride of ownership with all the features you're looking for. The stunning arched iron entryway greets you with a hint of the exceptional quality you'll find inside: 3BD (split Primary) plus Den, 2.5BA, 12ft ceilings, remodeled kitchen open to family room, great formal room, 3-car garage and full-length covered patio overlooking the refreshing pool. Most of the home has been updated in stages between 2012-2022, including exterior paint, roof and a/c's, all tied together with beautiful espresso plank tile floors. Near BASIS, Mountainside Middle & Desert Mtn High Schools & trailheads.

9514 W Running Deer Trail Peoria, AZ 85383

$1,125,000
5 Beds
3.5 Baths
4,633 SqFt
Status Active
MLS # 6785640
Property Type Single Family Residence
Price Type --
'Welcome to your new home with 7 Car Garages ! This amazing 4600+ sq ft, 5-bedroom, 4-bath home is situated on a 1/3+ acre premium lot in the beautiful gated community of Pleasant Valley. The master bedroom is located downstairs, and there are 4 split bedrooms upstairs. The entry features travertine tile. The kitchen includes a spacious eat-in area, stainless steel appliances. Additionally, there is a formal dining area, family room, and living room. The master bath features a separate tub, shower, and a huge walk-in closet. There is also a game room/loft upstairs and 3 gas fireplaces. The resort-style rear yard boasts a Pebble Tec pool with a rock waterfall. The home has new interior and exterior paint and additional separate 4-car garage & an Office

10467 N Nicklaus Drive Fountain Hills, AZ 85268

$1,125,000
4 Beds
4.5 Baths
3,723 SqFt
Status Active
MLS # 6650953
Property Type Single Family Residence
Price Type --
Custom home on premium golf course lot in the highly sought after Desert Canyon Golf Course community. Home is loaded with windows and patio space to capture the breathtaking views in every direction. Home features include dramatic vaulted ceilings, massive bedrooms, and 4 car garage. Custom kitchen with top of the line appliances and breakfast bar. All 4 bedrooms have ensuite bath. Backyard space includes pool, hot tub, and deck space wrapping around the entire back of property. Situated on the 9th hole of the Desert Canyon golf course with views of Four Peaks and the Fountain Hills landscape.

2206 E Sapium Way Phoenix, AZ 85048

$1,125,000
5 Beds
3.5 Baths
3,887 SqFt
Status Active
MLS # 6703828
Property Type Single Family Residence
Price Type --
Stunning former model w/ fantastic floor plan, mountain views & total privacy backing to Mountain Preserve. 2 suites w/ full baths, one up/one down, w/ 3 additional large rooms. Huge kitchen w/ double island, 2 separate sinks, espresso cabinets, granite countertops, and SS appliances. Master bath (down) w/ freestanding soaking tub & walk in shower w/ multiple shower heads. Roof replaced 2021 (15-yr warranty), new 5 ton HVAC for downstairs, hot water heater 2 yrs old, & water filtration/softener throughout! Backyard is private oasis w/ covered patio, sparkling pool + spa & fire pit. Nearby shopping, dining, hiking & top-rated schools. 20 min to Sky Harbor Airport. LOW HOA $198 semi-annually, offering biking/walking paths, pickleball, tennis, playgrounds, community pool and spa. LUCKY BUYER

420 W Adamanda Drive Phoenix, AZ 85086

$1,125,000
4 Beds
3.5 Baths
2,359 SqFt
Status Active
MLS # 6756967
Property Type Single Family Residence
Price Type --
MOTIVATED SELLERS ALL OFFERS CONSIDERED!! Santa Fe-style horse property, sprawling over an acre w/ no HOA—your opportunity to truly personalize your space. This custom-built, single-level home has been newly updated w/ nearly $200k in upgrades, enhancing its natural light-filled interior, cozy fireplace, & impressive kitchen. It features two primary bedrooms, two generous guest rooms, & tranquil backyard views. Step outside to a private oasis complete w/ a pool, spa, new gazebo, & a detached casita w/ a kitchenette & bath. W/ two RV gates, hookups, and zoning for an additional septic system, this property is perfect for all of your needs. Experience peaceful country living just minutes from shopping, Lake Pleasant, North Scottsdale, & world-class golf.

31228 N 47th Place Cave Creek, AZ 85331

$1,125,000
5 Beds
3 Baths
3,579 SqFt
Status Active
MLS # 6771706
Property Type Single Family Residence
Price Type --
This stunning home located in coveted Sonora Vista at Tatum Ranch has it all. Nestled on a dead-end cul -de-sac in this private, gated community this home contains immaculate upgrades from top to bottom. Owner made improvements like they would be there forever which include brand new windows, a $40,000 solar system that is paid in full, and virtually every interior finish was updated in 2020. The open concept floor plan is awesome too & features 5 bedrooms, 3 full baths, tons of windows for natural light, high ceilings,& no steps. Modern interior w/features like quartz countertops, grey custom cabs w/hardware, gorgeous tile flooring, brick fireplace, & ss appliances. As if the interior isn't nice enough the backyard is the star of the show featuring large... salt water pool w/new pebbletec, sport court, cozy firepit, grill, smoker, trampoline, huge grassy area and $9,000 worth of motorized shades to compliment the use of the covered patio during every season. This home truly has too much to list and is a rare offering. Move fast as these don't come on the market often.

14034 N Coral Gables Drive Phoenix, AZ 85023

$1,125,000
4 Beds
4 Baths
3,014 SqFt
Status Active Under Contract
MLS # 6631495
Property Type Single Family Residence
Price Type --
Wow, just wow! Stunning property nestled against a mountain in the prestigious Moon Valley Community! This sleek,modern retreat exudes charm with its meticulously designed layout boasting wood floors, vaulted ceilings, and skylights that provide abundant natural light. Spacious living room, open concept kitchen and dining, 3 bedrooms and a separate fitness room with updated modern finishes throughout. Outside boasts an unbelievable resort-style backyard with pool & hot tub surrounded by amazing views. This home is a must-see beauty!

1540 N Mariposa Road Flagstaff, AZ 86004

$1,125,000
4 Beds
4 Baths
3,873 SqFt
Status Active Under Contract
MLS # 6724027
Property Type Single Family Residence
Price Type --
Welcome to 1540 North Mariposa Rd! This stunning property is a true gem that offers a combination of comfort, style, and natural beauty. Curb appeal galore, you'll enter impressed by the enlarged Trex front deck, perfect for enjoying the beautiful Flagstaff weather and watching the deer graze with a peak view of the golf course. Entering you'll notice hickory hard wood floors that lead you to the formal living and dining room to the left and an office/bedroom on the right. From there you'll enter the great room a.k.a. ''the heart of the home!'' It touts high ceilings, a massive rock fireplace, a large breakfast nook, an Arizona room and a chef's dream kitchen. With modern appliances, ample storage space with pull out drawers, and a large island that serves as the perfect gathering spot for family and friends. Whether you're preparing a quick meal or hosting a dinner party, this kitchen has everything you need to make many great memories. The bedrooms in this home are spacious and comfortable, providing a tranquil retreat after a long day. The primary suite bathroom has a walk-in shower, separate soaking tub and a walk-in closet! There are 3 spacious guest bedrooms with a jack and jill bathroom. The 3-guest bedrooms also comes with a full bathroom and an additional flex room to be used for a workout space, extra tv room or for sleeping extra guests. But the true highlight of this property is its outdoor space. Step out onto the back patio, and you'll find yourself in a private oasis with three areas for dining and entertaining. The back is beautifully landscaped with split-rail fencing around the back perimeter. Whether you're enjoying a morning cup of coffee, hosting a barbecue, or simply taking in the stunning views, this outdoor area is sure to become your favorite spot. On colder days, you can still enjoy the backyard views by soaking in the sun from the Arizona Room! The location is perfect with easy access to a variety of Country Club amenities, outdoor activities, including hiking, biking, and skiing. With its proximity to the beautiful Coconino National Forest, you'll have endless opportunities to explore and enjoy the natural beauty of the area.

8246 E Kael Street Mesa, AZ 85207

$1,125,000
4 Beds
3.5 Baths
3,297 SqFt
Status Active Under Contract
MLS # 6731205
Property Type Single Family Residence
Price Type --
Exquisite move-in-ready CUSTOM home nestled in the upscale Gated Community of Savona. Plenty of room for all your toys with the oversized 3-car garage, RV gate with space to build an RV garage or casita, and an extended paved driveway for ample parking. Great curb appeal and a beautiful 10ft tall custom iron entry door sets the stage for the grand entry. Soaring 12ft ceilings with coffered designs in the office and bonus room, 8ft solid wood doors, and beautiful Versailles patterned travertine throughout with architectural delights await. Gourmet Kitchen with Double Ovens, Stainless Steel Appliances, Gas Cooktop, Kitchen Island, and opens to the dining area and great room with fireplace. Bonus Room perfect for a game/TV room connects to the Guest/Mother-in-law suite with en-suite private entrance and its own private patio. Large primary suite and primary bath offers jetted soaking tub, snail shower and walk-in-closet. A separate wing offers two additional spacious bedrooms with individual sinks and an adjoined bathroom. Large laundry room with lots of cabinets for added storage and a laundry sink. Enjoy the privacy and desert landscape in your backyard with a sparkling saltwater pool, extended covered patio, and breathtaking sunsets. Plenty of room to build an RV garage or casita, a ramada or outdoor kitchen. The possibilities are endless, just waiting for your design. Upgrades include: New AC Units in 2019, 2 new Water Heaters in 2021, Water Softener in 2023, Exterior and Interior Painted in 2023, and Roof Inspected in 2024. Enjoy Pickleball, Basketball and Children's Playground. Great location just minutes to the 202 Freeway, Shopping and Restaurants, Hiking and Biking Trails, 20 minutes to Scottsdale Sky Harbor Airport, and 15 minutes to Lake Saguaro. Schedule your private showing today.

7499 E Visao Drive Scottsdale, AZ 85266

$1,125,000
2 Beds
2.5 Baths
2,390 SqFt
Status Active Under Contract
MLS # 6765684
Property Type Single Family Residence
Price Type --
Welcome to this lovely 2-bedroom plus bonus room, 2.5 -bath home located in the sought-after community of Bellasera. This North/South facing property offers a large eat-in kitchen, plantation shutters, a spacious primary suite with an ensuite bathroom and walk-in closet, while the guest bedroom features its own private ensuite, providing comfort and privacy for visitors. The bonus room is a versatile space that can serve as a home office, hobby room, or easily converted into a third bedroom. Additional upgrades include a new water heater, water softener system, and a fully insulated garage, new dual-pane windows, and an insulated, energy-efficient design throughout. The home is equipped with solar panels, a new roof, and a mini-split in the garage, ensuring year-round comfort and and reduced energy costs. Enjoy the tranquil, guard-gated community of Bellasera with its resort-style amenities and stunning desert surroundings. This home is move-in ready and waiting for you to experience the best of North Scottsdale living!

1045 S 131st Street Gilbert, AZ 85233

$1,125,000
4 Beds
2 Baths
1,909 SqFt
Status Active Under Contract
MLS # 6776807
Property Type Single Family Residence
Price Type --
Rare Opportunity in White Fence Farms! Step into a tranquil, tucked-away haven where classic charm meets endless outdoor possibilities. Located in the heart of Gilbert on a picturesque street lined with acre-sized lots, mature trees, and lush green lawns, this property offers a private retreat with the convenience of city life just minutes away, including the vibrant Heritage District and downtown Gilbert. This expansive irrigated acre+ lot is designed for both relaxation and recreation. A beautiful, fenced diving pool with a recently added salt system invites you to cool off under the sun, while a charming pagoda and deck offer the perfect spot for outdoor entertaining. The property is dotted with fruit and pecan trees and shaded by majestic, towering trees that change with the seasons, creating a picturesque landscape year-round. The spacious backyard has ample room for horses or small farm animals, gardening, or simply unwinding in the peace and privacy this setting affords. With its idyllic blend of rural tranquility and modern accessibility, this home is perfect for those who cherish outdoor living, making it a rare gem in Gilbert. Solid slump block construction stands the test of time, and the classic ranch style home has been tastefully updated, featuring a 4 bedroom/2 bath layout with neutral tile floors, classic white fireplace surround (wood fire), wood laminate flooring in three bedrooms for easy care and tile in the bathrooms. The kitchen features white cabinets, granite counters, tiled backsplash, refrigerator, updated plumbing/sink and appliances, leads out to an expanded covered patio for indoor/outdoor living. The owner's suite has a combination of tile and carpet, with a vanity or sitting area that offers views of the outdoors. Recently updated bathrooms feature quartz counters, tiled shower/bath areas, brushed nickel fixtures and newer cabinets. The property has an attached 2-car garage, expanded driveway, RV gates and room for RV/trailer parking. Three storage sheds are located on the property, and discover plenty of room to build an RV garage, guest house, workshop and more. The HVAC was fully replaced in 2023 and has a 10-year transferrable warranty. Updated dual pane vinyl windows add additional efficiency. The water heater was also replace in 2023, shingle roof in 2015 and over-patio roof in 2023. An attached laundry/utility room offers more storage or room for an additional refrigerator. Just down the street is access to the Heritage Trail and canal, with miles of walking, biking and horse access. Travelling north on the trail will connect you to the Wester Powerline Trail, taking you directly to downtown Gilbert and the Liberty Marketplace as well as fabulous restaurants and breakfast spots! White Fence Farms is just 22 minutes from two major airports and convenient to downtown Phoenix, Scottsdale and Tempe/ASU, as well as a short drive from popular hiking and biking trails, lakes and rivers.

22808 S 132nd Street Chandler, AZ 85249

$1,125,000
2 Beds
2 Baths
1,077 SqFt
Status Active
MLS # 6713163
Property Type Manufactured Home
Price Type --
Private horse lover's paradise located in a county island in one of the most desirable zip codes in Chandler! This 2.247 acre property boasts eight 16' x 16' fully covered mare motel stalls, a 20' x 20' fully covered Stallion/Foaling stall with attached irrigated grass turnout, two additional irrigated grass turnouts, tack up stall/cross ties, a 150' x 175' arena with premium sand footing, mature shade trees and city water. This property has enough space to build your dream home and barn, but also includes an existing modular home that can be renovated and lived in while your dream home is being built! In addition, a 1.14 acre, MLS #6713160, abuts this property that can be purchased to expand the arena to 175' x 300', or simply build your own version of an equestrian paradise!

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