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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4331 W Port Au Prince Lane Glendale, AZ 85306

$1,111,777
4 Beds
3 Baths
2,570 SqFt
Status Active
MLS # 6782134
Property Type Single Family Residence
Price Type --
Get Ready to Check All your Boxes. Just under 1 ACRE, Irrigated, Owned Solar, New Pebble tech Pool/Equipment, 5 Stall Horse Barn with connected turnout space/Grass Pasture, 120' x 70' Sand Arena & Bridle Paths out the back gate, Tack room, Fully Remodeled Home with New Roof, Windows, Doors, Paint, Stucco, New Deck, Mature Trees, Gabion Walls, Dog Run, Chicken Coop and the Property just keeps giving. Incredibly Unique opportunity to feel like you are living in the Country with all the amenities of the City only minutes away. Truly an Amazing Remodel by Licensed Contractor with Custom touches like Iron railing, Iron Front Door, Huge MudRoom/Drop Zone, Water Feature, Epoxy Garage Floor, Spray Foam Insulation on All Exterior walls of the Living/Kitchen. No expense was Spared!

2609 E Pine Island Lane Payson, AZ 85541

$1,111,000
4 Beds
4.5 Baths
3,586 SqFt
Status Active
MLS # 6769125
Property Type Single Family Residence
Price Type --
BEST OF THE BEST VIEWS OF GOLF & WATER~COURSE SIGNATURE FEATURE~Canopied w/ ponderosa pines~3 primary king size en-suite bedrooms plus bunk room w/ its own bath~Main level has 2 beds, 2.5 baths, gathering area, kitchen & dining spaces all opening to views and deck~Downstairs has another open gathering space with bar, wine room, 2 beds and 2 baths & all open to covered patio walking right out to lakes & golf~Private cul de sac lot w/ 2.5 garage~Updated entertainers' kitchen w/ loads of cabinets, Viking cooktop, commercial dishwasher, walk-in pantry~Community includes two 18-hole golf courses, pools, spas, gyms, parks, courts, trails & restaurants~POSITIONED 5000 ft, 1.5 hrs from valley~Spectacular drive, 20 degrees cooler~HELLO SUMMER HOME, 4 seasons, & DESIGNER SNOW, PLAY HOOKEY FOR THE DAY AND DRIVE UP TO PLAY IN THE SNOW AND SLED FOR THE DAY! It is a lifestyle ypu will fall in love with! Easy drive, easy show, adored home with plenty of space for family and friends! Golf or social membership required for each homesite in the clubs & posted in documents. Buyer to confirm all facts and figures.

9823 E Dead Sure Place Gold Canyon, AZ 85118

$1,110,000
4 Beds
4 Baths
3,074 SqFt
Status Active
MLS # 6760838
Property Type Single Family Residence
Price Type --
Immaculate Luxury Surrounded By 360 Degree Vistas For As Far As The Eye Can See! STUNNING Architecture Features Curved Walls, Rounded Corners, Cathedral Ceilings & Arched Windows! Upgrades Include Travertine Floors, Granite Counters, Stainless Appliances, Solid Alder Interior Doors, MASSIVE Custom Front Door & Ramada, Custom Wrought Iron Railings, Wet Bar, Fireplace, Private Patios Galore & More! Outside Is An Entertainers Dream w/Multiple Seating Areas, Built In BBQ, Outdoor Bar & Sparkling & Serene Water Feature! The VIEWS Are Simply Breathtaking In ALL Directions!

6437 N 17 Street Phoenix, AZ 85016

$1,110,000
5 Beds
4.5 Baths
2,714 SqFt
Status Active
MLS # 6774830
Property Type Single Family Residence
Price Type --
Rare Opportunity-Central Phoenix- Urban Sophistication at it's Finest! This highly coveted , uptown floorplan, has 5 bedrooms and 4.5 bathrooms, a downstairs office, and a spacious upstairs loft. The inspired design was newly built in 2022 with high ceiling and a open layout, stylish black matte fixtures, and two separate primary suites on both levels. Modern kitchen that opens to the family room, stainless steel appliances, gourmet kitchen cabinets, quartz counter tops and walk in pantry. Upgrades include lighting and fans, custom window coverings and upgraded flooring, nova water softener and tankless water heater. Premium lot and backyard professionally designed, resort style oasis. Nearby eateries and hiking and biking trails with views of mountain preserves. Top rated schools.

16510 N 92nd Street Unit 1003 Scottsdale, AZ 85260

$1,109,900
3 Beds
5 Baths
3,100 SqFt
Status Active
MLS # 6752776
Property Type Townhouse
Price Type --
This stunning 3 bed, 5 bath home in Soho Scottsdale is the perfect blend of luxury and convenience with a private elevator. Inside, enjoy wood-look flooring, upgraded fans, and a crisp, modern palette. The eat-in kitchen features quartz counters, tile backsplash, stainless appliances, and an island with a breakfast bar. A bonus room offers a cozy lounge or entertainment space. The primary bedroom boasts a walk-in closet and ensuite with dual sinks and designer touches. Relax on the balcony or the jacuzzi-ready rooftop deck with mountain views. ADA compliant and allows residential/commercial use!

5525 N 12th Street Phoenix, AZ 85014

$1,100,098
3 Beds
3 Baths
2,204 SqFt
Status Active
MLS # 6771751
Property Type Single Family Residence
Price Type --
''El Rancho Paquito'' Historic Del Webb 1954, 2,350 square foot Ranch house in the heart of Phoenix! Nestled on a premium 1/3 acre corner lot, featuring a large front yard w/mature shade trees, a 2 car side garage, electric RV gate with 3 car covered parking! Inside you will find a cozy family room and a living area w/a fireplace. Elegant wood flooring in all the right places and neutral palette throughout. The fabulous galley kitchen is equipped w/ample cabinetry, solid surface counters, mosaic tile backsplash, built-in appliances, recessed lighting. The primary bedroom boasts a private sitting area w/outdoor access and an ensuite w/a stylish barn door. Guest quarters have their own separate entry & bath! Owned solar w back up battery. Document tab has the history of this unique property . Also including a sizeable backyard w/a covered patio, extended paver seating area, and a refreshing hot tub, this home has it all! Act now before it's gone!

5548 W Silverdale Road Queen Creek, AZ 85144

$1,100,000
5 Beds
3 Baths
2,720 SqFt
Status Active Under Contract
MLS # 6697389
Property Type Single Family Residence
Price Type --
NEW CUSTOM HOME on 3.3 acres that will include 5 bedrooms, study/office/den, 3 bathrooms, quartz countertops, LVP flooring, designer tile surrounds in bathrooms, N/S exposure, privacy and the most breathtaking views of San Tan Mountains. Bring your horses, bring your friends and enjoy all Silverdale has to offer!

3283 W Mesquite Street Phoenix, AZ 85086

$1,100,000
4 Beds
3.5 Baths
3,038 SqFt
Status Active
MLS # 6700603
Property Type Single Family Residence
Price Type --
Presenting a stunning new construction luxury home by NEXTGEN Builders to be built: This luxurious home features 4 bedrooms plus an office/den, 3.5 bathrooms, and high-quality finishes throughout. The spacious design includes an oversized 2-car garage plus a 46+ foot RV garage with a 12x14-foot tall garage door, set on a large lot without HOA restrictions. Highlights include an oversized contemporary front door, 2x6 exterior framing, a large kitchen island with quartz countertops, and walk-in closets in all bedrooms. The master bathroom offers a spacious entry shower, standalone tub, and double sinks. Other features include 8-foot doors, high ceilings, energy-efficient spray foam insulation, and a post-tension foundation. Choose your options. Please note, photos are of a model home

5202 W Soft Wind Drive Glendale, AZ 85310

$1,100,000
4 Beds
2.5 Baths
2,692 SqFt
Status Active
MLS # 6735125
Property Type Single Family Residence
Price Type --
Original owners are now selling this fabulous, well-maintained custom 4 bedroom, 2.5 bath single-level home in the wonderful Saddleback Estates. This home sits on a spacious north/south exposure lot of .823 acres with mountain views, a desirable RV gate and parking with RV clean-out, and no HOA to worry about. Recent upgrades include a new hot water heater installed in 2024, a new A/C unit in 2010, and a new roof in 2019. Once inside, appreciate the spacious open floor plan, durable tile flooring in all the right places, a soothing neutral color palette, and a welcoming formal living and dining room with an easy flow into the gourmet chef's eat-in kitchen. Here, you can enjoy matching black appliances, view windows above the kitchen sink bringing in natural light, ample cabinet and countertop space, and a large breakfast bar open to the family room featuring a cozy fireplace. The family room seamlessly flows into the breakfast room, which highlights a double door exit to a side patio, making it easy to entertain family and friends. From the family room, you have wonderful access to the extended covered patio, bringing the outdoors in and extending your entertainment area. Enjoy the putting green, built-in BBQ, and fireplace. The property also includes a detached 2-car garage and workshop with RV parking, plus an additional 2-car carport, along with ample room for endless possibilities. The main house is equipped with a 2-car attached garage and plenty of slab parking for additional vehicles or an RV. Back inside, the primary suite offers a private exit to the side yard and a lavish ensuite bathroom with a custom tiled walk-in shower, deep soaking tub, dual sinks, additional vanity space, and a large walk-in closet. The three remaining bedrooms include one with a separate exit and a kitchenette, a guest bath, powder room, a spacious private office, and a convenient laundry room that includes the washer and dryer. Located in a great area close to top-rated schools in the Deer Valley School District, Glendale Community College, Hurricane Harbor for entertainment, Thunderbird Park and Deem Hills for hiking and biking trails, and just minutes to I-17 Freeway and the Norterra area for shopping and popular restaurants. Don't miss this incredible opportunity!

3350 S Holguin Way Chandler, AZ 85248

$1,100,000
5 Beds
3.5 Baths
4,377 SqFt
Status Active
MLS # 6775658
Property Type Single Family Residence
Price Type --
Great Location, Amazing Home! Single story from the outside, basement with a theatre room on the inside. Directly off the front entry is the den/library or home office. The kitchen features granite countertops and backsplashes, GE Monogram appliances, gas cooktop and wall oven, with walk-in pantry, kitchenette and plenty of cabinetry space. Formal dining room/great room area adjacent. Relaxation is just a few steps away when you step outside onto the back patio complete with insulated electric roller shades, built in gas grill and pool with a new pump 2024. This wonderful 5-bedroom home has a huge master bedroom with new Anderson sliding glass doors/windows that open to the backyard spa & pool area. Master bath is complete with two double bowl sinks, separate shower and oversized tub and a huge walk-in closet with plenty of storage. Two additional bedrooms and full bath down the hall, two additional bedrooms and full bath in the basement. Full finished basement with wet bar, granite countertops and undercounter fridge. 144 mounted wall screen and projector for your 8-seat theatre room great for entertaining or gaming. Plenty of storage space to be found in this home, half bath located next to the laundry room/workout facility. New irrigation system installed 2024. Financed solar panels will be paid off at COE. Home is located next to the green space/park area in Avalon, Chandler Unified School District. Come see why this home should be your next home.

3946 E Meadowbrook Avenue Phoenix, AZ 85018

$1,100,000
4 Beds
3 Baths
1,900 SqFt
Status Active
MLS # 6765658
Property Type Single Family Residence
Price Type --
Location, Location, Location! Possible short term creative financing. Your opportunity awaits to live your best life in Arcadia Lite, one of the most sought-after areas in all of Phoenix for homes under $5M. This incredible 10,019 sq.ft. lot is perfect for building your dream home, remodeling the current home for your self or a making it a luxury rental property. It's prime location offers convenience and luxury as it is situated just moments away from Postino, Ingo's and LGO, and within minutes of Paradise Valley, Camelback Mountain, hiking trails, Scottsdale Fashion Square, Biltmore Fashion Park and Sky Harbor International Airport. This property is a must see.

7320 E Sliding Stop Lane Cornville, AZ 86325

$1,100,000
3 Beds
2 Baths
2,258 SqFt
Status Active
MLS # 6732998
Property Type Single Family Residence
Price Type --
If private, cozy and quiet is what you are looking for, look no further. This property is an outdoor enthusiasts dream. Bordering US Forest Service land (no motorized vehicles allowed) gives you the opportunity to hike, bike or trail ride literally right out your back door. This 2258 square foot 3bed/2 bath custom home offers a split floor plan, vaulted ceilings, large windows that allow plenty of natural light and the ability to enjoy the amazing 360 degree views. For the horse lovers there are 3 covered horse stalls, round pen, hot walker, arena and a turnout, For the athlete there is a basketball court, pool table and a hot tub. Property is fully fenced to house all of your furry friends. This is a truly one of a kind property, so come take a look.

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