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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3336 E Mountain View Road Phoenix, AZ 85028

$1,125,000
3 Beds
3 Baths
2,538 SqFt
Status Active Under Contract
MLS # 6746792
Property Type Single Family Residence
Price Type --
Welcome to your dream home in Paradise Gardens, offering mountain views of the Phoenix Preserve. Whether you're sipping your morning coffee or entertaining guests you'll love relaxing on your spacious front patio. Step inside to discover vaulted ceilings and 16-ft double sliding doors in the great room, leading to a beautifully renovated home, both inside and out. This home perfectly blends modern luxury and comfort, featuring a stunning custom wood-burning fireplace and premium luxury vinyl plank flooring throughout, creating a warm and inviting atmosphere for lively gatherings or quiet, cozy evenings. The heart of the home is the completely modernized kitchen, with sleek cabinets, quartz countertops, stainless steel appliances, and an under-counter drawer microwave-ideal for... preparing meals and entertaining. Retreat to the primary suite, your private sanctuary with luxurious solid wood flooring and a spacious walk-in closet with built-in shelving. The spa-like en-suite bathroom boasts an oversized double shower with dual rainfall shower-heads, a free-standing tub, and a back-lit LED mirror. The secondary suite provides a haven for guests, featuring its own freshly remodeled bath and a private entrance to the backyard from the adjacent flex room. This space can be utilized as an office, a sitting area, a hobby room, or even converted into a kitchenette for an in-law suite or Airbnb. Step outside to your personal oasis. Relax on the oversized baja shelf in the completely remodeled pool, or host barbecues amidst lush landscaping and extensive paver patios. The circular driveway, with extended RV parking, offers ample space for guests and room for your toys. This stunning property, with NO HOA, promises both tranquility and convenience in one of the area's most sought-after locations. Whether you enjoy hiking, mountain biking, or easy access to endless shopping and culinary experiences, welcome to your new home on Mountain View Rd. where every detail is designed for your comfort and enjoyment.

1375 E Victoria Street Chandler, AZ 85249

$1,125,000
4 Beds
3 Baths
2,323 SqFt
Status Active
MLS # 6770286
Property Type Single Family Residence
Price Type --
Amazing one acre property with a pool, casita & private pickleball court! Main house is 4 bedrooms, 2 bathrooms + office with a total of 2,323 sqft. Casita has its own bathroom, laundry, kitchenette and is a total of 480 sqft. Kitchen was recently renovated and features a large butcher block island, mixed media flooring and a large beam that opens the space up to the living area. Primary bathroom updated with a huge walk-in shower, soaking tub and double sinks. Other recent updates include guest bathroom, flooring, exterior and interior paint, exterior siding, pickleball court, turf & more. Backyard is flood irrigated with citrus trees, sparkling pool, brand new pickleball court and an area for a grill!

22568 E Alyssa Road Queen Creek, AZ 85142

$1,124,155
5 Beds
4 Baths
3,659 SqFt
Status Active
MLS # 6741168
Property Type Single Family Residence
Price Type --
Luxurious former model home featuring a desert modern architectural style, single-level living, a generational suite with a kitchenette, a game room, separate office, and more! The home has a February 2025 COE and includes the furnishings. Designer features throughout. The kitchen boasts a 12' multi-slider, GE café SS appliances with a built-in wall oven, microwave, stainless Steele refrigerator, and 30'' gas cooktop with a vent hood, an extended island with new elegance quartzite countertops, glass tile backsplash to the ceiling, and Lausanne maple truffle stacked cabinets with matte black pulls. 12' ceilings at the great room, dining room, and kitchen. A 10' center pull slider at the great room and a built-in entertainment cabinet. Upgraded light fixtures and custom window treatments.

8621 W Via Montoya Drive Peoria, AZ 85383

$1,120,000
4 Beds
3 Baths
4,028 SqFt
Status Active
MLS # 6589036
Property Type Single Family Residence
Price Type --
Welcome to this exquisite property that offers the perfect blend of luxury and functionality. This stunning main house was rebuilt in 2016 after a fire. It boasts 3,108 square feet with 4 bedrooms and 3 bathrooms. Alongside the main house, there is a 920 square foot guest house with an additional bedroom and bathroom; which wasn't rebuilt in 2016. It also has its own family room, dining area, fully functioning kitchen and washer/dryer hook ups. Throughout most of the main home you will find beautiful Turkish travertine flooring. The heart of this home is the entertainer's kitchen, featuring floor to ceiling custom cabinetry, a large granite island with ample storage, a custom glass cooktop and double ovens. Living room has a two-way fireplace that is shared with the master bedroom The fireplace is adorned with natural stone and a custom designed mantle, adding warmth and charm to the space. Master suite has double sinks, his/hers closest and an oversized walk in shower. Laundry room is thoughtful designed with custom cabinetry from floor to ceiling and plumbing for two washers and a dryer. Step outside and indulge in the paradise of your dreams with a sparkling pool complete with a relaxing cabana area, pool storage and shed. The property offers plenty of space for RV parking and a 50 amp breaker, ensuring convenience for your adventures. Beyond the aesthetics, practicality is not forgotten. The home comes equipped with a RO system and water softener. Situated on almost half an acre of land with no HOA restrictions, this property provides you with the freedom to enjoy your space and tailor it to your preferences. Don't miss this opportunity to call this place home.

3806 E Taurus Place Chandler, AZ 85249

$1,120,000
6 Beds
4 Baths
3,863 SqFt
Status Active
MLS # 6746508
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the heart of Chandler, AZ! This stunning two-story residence offers an abundance of space and luxurious features, perfect for families and entertainers alike. With 6 spacious bedrooms and 4 well-appointed bathrooms, there's room for everyone to enjoy their own sanctuary. Step inside to discover a beautifully designed layout that includes a dedicated theater room, perfect for movie nights or entertaining guests. The fully finished basement adds extra versatility, making it an ideal space for a game room, gym, or extra storage. Outside, retreat to your private oasis featuring a sparkling pool, perfect for those hot Arizona days along with owned solar

4675 Copper Court Wickenburg, AZ 85390

$1,120,000
3 Beds
3.5 Baths
3,024 SqFt
Status Active Under Contract
MLS # 6742332
Property Type Single Family Residence
Price Type --
Enter the spacious 3-bed, 3.5-bath Orion floor plan. Dramatic 10 & 12 ft ceilings accentuate mountain views from the grand living room's ample windows. Den & media room offer additional hosting space when the family comes for the holidays. Granite countertops at dining & baths. Smart space at laundry adds storage, office or craft area. Kitchen is an entertainer's dream w/ built-in cooktop, microwave, oven, & large island for guests. Alcove dining space opens to 600 sq ft of covered patio. Powered shades, built-in BBQ & ceiling fans. artificial turf and mountain views, stunning sunrises & sunsets are all waiting in your backyard. Fully paid off solar, 3-car garage, hot water recirculation & water filtration primary bath with soaker tub and glass enclosed shower upgrades just to name a few

8631 N 84th Street Scottsdale, AZ 85258

$1,119,000
3 Beds
2 Baths
1,816 SqFt
Status Active Under Contract
MLS # 6774169
Property Type Townhouse
Price Type --
Experience luxury living in this tastefully remodeled townhome, nestled within the Las Palomas community of McCormick Ranch. This single-level residence offers an inviting blend of character, style and elegance. Upon entering, you'll be captivated modern charm, featuring dramatic wood-beamed vaulted ceilings and a cozy two-way, wood-burning fireplace. Every room has a private exit to patios and lush gardens, enhancing the harmonious indoor-outdoor flow. The chef's kitchen is a culinary dream featuring wood cabinetry, granite counters, LED lighting and stainless-steel Thermador appliances. The primary bedroom retreat boasts upgraded cabinetry, dual sinks and a custom walk-in closet. The guest bedroom features an en-suite bathroom that closes off to dual as a powder bathroom for your guests The laundry room is complete with a washer/dryer combo and ample storage. The two car garage is equipped with built-in cabinetry for additional storage and an outdoor sink. Living in Las Palomas means enjoying a wealth of amenities. Take full advantage of living in a guard-gated community with private lake access and features such as pickle-ball and tennis courts, two swimming pools, a spa, outdoor chess and shuffleboard, tranquil water features and sitting areas, and dog park. All designed for a carefree, resort-like lifestyle. The location of this community is unmatched. Situated on the greenbelt of McCormick Ranch, you are in an oasis of parks, lakes, paths, and golf courses traversing 11 miles through the heart of Scottsdale. This community is within walking distance of over 15 restaurants and multiple coffee shops, ensuring unparalleled luxury, leisure, and convenience. Please see the list of recent upgrades in the documents tab. Furniture available on separate bill of sale. This home is a gem and won't last long. Do not miss your chance to make it your own!

13616 W Ocotillo Road Glendale, AZ 85307

$1,119,000
4 Beds
4 Baths
3,940 SqFt
Status Active
MLS # 6773411
Property Type Single Family Residence
Price Type --
A UNIQUE find! Spectacular 4-bedroom home in the highly sought-after Luke Ranch Estates is a dream come true! Starting with a sided 2-car garage, RV garage, RV gate, striking stone accents, extended driveway, and a mature desert landscape. The home exudes elegance throughout! Attention to detail is evident in the plantation shutters that grace the windows, complemented by neutral paint, abundant natural light, archways, stylish light fixtures, dramatic high ceilings, and tasteful flooring - carpet & wood-look tile. You'll LOVE the formal dining room and a desirable great room paired with multi-sliding doors that effortlessly blend indoor & outdoor living! The gourmet kitchen boasts high-end SS appliances w/wall ovens, solid-surface counters, mosaic tile backsplash, & a huge 2-tier island This home is a former Model home. The walk-in pantry, wine rack, and a plethora of cabinetry ensure ample storage. The den provides versatility! The oversized owner's retreat promises a restful night's sleep, featuring a vaulted ceiling and a barn door that opens to the lavish ensuite with two vanities, a soaking tub, a tiled shower, & a sizable walk-in closet. The secondary bedrooms also include their own walk-in closets & private bathrooms. PLUS! As a bonus, this gem has an attached guest house with a bedroom, living area, & a kitchenette. Laundry room with a sink & cabinetry. Beyond the interiors, the RESORT-STYLE backyard holds its own charm! Designed for relaxing & entertaining, it showcases a covered patio, lush lawns, a firepit, well-laid pavers, and a sparkling pool for year-round enjoyment. This gem has it all. See it! Love it! Live it! Seller wants it SOLD!

10707 E Tesla Avenue Mesa, AZ 85212

$1,115,000
6 Beds
4.5 Baths
5,045 SqFt
Status Active
MLS # 6781706
Property Type Single Family Residence
Price Type --
BLACK FRIDAY BLOW OUT PROMOTION!! Submit the Black Friday Coupon in the documents tab with your offer to receive $15,000 off the listed price!! All written offers must be submitted with the coupon by 11:59 pm on Sunday, December 1st to receive this promotion. NO EXCEPTIONS! FINALLY... AFFORDABLE LUXURY AT ITS FINEST!! BELOW APPRAISED VALUE! (Home was just appraised several weeks ago) Welcome to this stunning 6-bedroom, 4.5-bath home, offering over 5,000 sq.ft. of luxurious living space. Located in the highly sought-after Eastmark community, this home features nearly $200K in upgrades, creating the perfect blend of style, comfort, and functionality. As you approach, the desert landscaping enhances the home's curb appeal. Inside, you'll find tile flooring throughout the main level and a spacious open-concept design. The enormous kitchen is a chef's dream with a massive island, gas cooktop, dual in-wall ovens, and ample cabinets, plus a walk-in pantry and breakfast bar. A formal dining room and large family room provide plenty of space for entertaining. Upstairs, the bedrooms have highly upgraded carpets for comfort, and the oversized primary suite offers a spa-like en-suite bath and walk-in closet. A convenient downstairs ensuite bedroom is perfect for guests. Additional features include an oversized 3 car garage, a loft area, and walk-in closets in all secondary bedrooms. The resort-style backyard is an entertainer's paradise with a private pool, luxury spa, built-in BBQ, firepit, and two pergolas, all set amidst low-maintenance turf and gravel landscaping. Living in Eastmark offers access to parks, walking trails, amenities that are seconds to none, amazing schools, and a phenomenal connected community feel. Ask us about our luxury listing video we did for this house and community. This home offers luxury living at its finest - don't miss out!

6073 E Brilliant Sky Drive Scottsdale, AZ 85266

$1,115,000
2 Beds
2 Baths
2,096 SqFt
Status Active
MLS # 6724323
Property Type Single Family Residence
Price Type --
6073 EAST BRILLIANT SKY DRIVE - TERRAVITA CAELUM 2 BEDROOM/2 BATH WITH 2 CAR GARAGE. SOUTH BACKYARD ON GOLF LOT. ARIZONA SUN THROUGH MULTIPLE WINDOWS! LARGE LOT HAS EXPANSION OPTIONS FOR CASITA OR THIRD GARAGE. Lovely entrance to a tiled open area. Great room, living room with entertainment wall and wall of niches and fireplace. Windows to open area/golf course. Double doors to patio. Breakfast nook and kitchen open to entire area. Breakfast nook is surrounded by windows for spectacular views. Kitchen has SS appliances, gas stove, microwave, granite counter and side area with additional cabinetry and counter. Primary bedroom again with lots of windows and double doors to patio. Plantation shutters. Bathroom has double vanities, walk-in shower, soaking tub. Floor Plan att Click Second bedroom is spacious with plantation shutters. Bath has single vanity and tub/shower combo. Additional closet and cabinetry in hallway. Laundry has cabinetry and counter space area. Backyard paradise: golf course lot and open for privacy; pool; paved, rock and grass with grass partially in yard and down side; covered patio; grill area. Perfect Arizona home for entertaining and luxury living.

29429 N 64th Street Cave Creek, AZ 85331

$1,115,000
2 Beds
1.5 Baths
1,728 SqFt
Status Active
MLS # 6677040
Property Type Single Family Residence
Price Type --
Welcome to your own private desert oasis in the heart of Cave Creek, Arizona. This stunning property boasts 2.5 acres within a gated equestrian community ready for you to build on. The highlight of this estate is the impressive barn, perfect for housing horses or could be a car barn! The charming 2 bedroom 1 bath apartment located on top of the barn will not disapoint. HVAC in the garage! Live in your barndominium while you build your dream home. Enjoy breathtaking views of the surrounding mountains and sunsets from your own private balcony, or relax in front of the fire pit after a long day on the trails. Don't miss out on this rare opportunity to own a piece of paradise in one of Arizona's most sought-after locations. Giddy Up!

8731 E Starlight Way Scottsdale, AZ 85250

$1,112,800
4 Beds
2 Baths
1,931 SqFt
Status Active
MLS # 6749733
Property Type Single Family Residence
Price Type --
This darling ranch style home has been updated into a show-stopping residence! The contemporary style has all the right colors and finishes and will be the perfect place to welcome family and friends. The great room boasts a modern fireplace accented by large windows that look out onto the backyard and pool, a kitchen that makes you think ''yes, I want to cook -no more takeout!'' and a cute dining room niche that is ideal for gatherings. The rear yard has been designed with outdoor fun in mind, and the heated pool will be available all year for your enjoyment. Close to all that Scottsdale has to offer, you will be minutes from the Talking Stick Fields, Casino, golf, parks, OdySea Aquarium, Butterfly Wonderland, walking paths, Old Town Scottsdale, unique dining opportunities, high end shopping and all kinds of entertainment like a luxury movie theater, Farmer's Market and Art Shows.

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