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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917 N 8th Street Phoenix, AZ 85006

$1,100,000
2 Beds
1 Bath
1,465 SqFt
Status Active
MLS # 6741219
Property Type Single Family Residence
Price Type --
Sale includes 917 & 921 N 8th St. 8th & Roosevelt consists of a historic home and additional land for development, located in the heart of the Garfield Historic District. The property sits on approximately a half-acre (gross) of land that is zoned R-5. The seller has a site plan to add (11) 1-bedroom units and (2) 2-bedroom units along with amenity space between the new units and the existing historic home. This would be a perfect small apartment community or short-term rental building in a ''Melrose Place'' type setting in downtown Phoenix. This is a fantastic, bite-sized opportunity for the seasoned investor or a local creative / artistic developer who wants to do a unique, fun project in the heart of one of the busiest, most dynamic, and eclectic areas in the entire Valley. 8th & Roosevelt is an awesome value-add / development opportunity in the heart of Downtown Phoenix. The property is located just east of 7th Street right off of Roosevelt in the heart of the gentrifying Garfield Historic District. Roosevelt and 7th Street is the east entrance to the happening Roosevelt Row district in the epicenter of Downtown Phoenix. It is minutes to the stadium district and a short bike ride / walk to the downtown ASU campus, Phoenix Burton Barr Library, and the Phoenix Art Museum. It is also minutes to Margaret T. Hance Park, which is the location of hundreds of activities including the McDowell Mountain Music Festival and many weekend food / craft festivals throughout the year. It is approximately a half mile to the I-10 Freeway to allow quick and easy access to all parts of the valley. This location is as central is it gets and allows residents to enjoy, with ease, so much of what Downtown and Midtown have to offer. With many dining, shopping, and entertainment options, as well as multiple freeway access points within minutes, 8th & Roosevelt Redevelopment Opportunity will prove to be a great place for residents to live as well as will be a very attractive parcel for a future class-A redevelopment in an A location. Phoenix is consistently on every national list for net influx of people and jobs, and the downtown area is expected to continue to explode with huge job growth in many different sectors; with Arizona State University's downtown campus rapidly expanding (already over 11,000 students and rapidly growing); with massive amounts of biotech investment and development in the area (the new Creighton University is approximately 2 miles away in midtown; the Phoenix Biomedical HUB is a couple blocks away; the stadium district is minutes away; the warehouse district is exploding around the corner to the south; and more). Opportunities like 8th & Roosevelt are rare and offer an investor a great value-add opportunity in one of the most active and desirable areas in the country.

77 S Arroya Road Apache Junction, AZ 85119

$1,100,000
3 Beds
2.5 Baths
2,415 SqFt
Status Active
MLS # 6753042
Property Type Single Family Residence
Price Type --
Imagine--your perfect Arizona homestead! Peace & quiet on the outskirts of the city, and adventure and exploration in horse country awaits with just shy of 4 acres for your horses, trails immediately adjacent to your property on expansive BLM land, and breathtaking views of the Superstition Mountains. More info and professional photos coming soon!

32029 N 20th Lane Phoenix, AZ 85085

$1,100,000
5 Beds
4.5 Baths
4,019 SqFt
Status Active
MLS # 6752163
Property Type Single Family Residence
Price Type --
5 bedroom and 4.5 bathroom, two story home with a private lot and pool. Completely remodeled. New kitchen, bathrooms, showers, all new flooring including hard and carpet. New cabinets, new paint inside and outside, lighting fixtures and fans, fireplace, high end appliances, laundry upstairs and downstairs, and so much more! You will have plenty of space to entertain inside the home as well as outside around the pool. Quiet, gated community and home sits on a cul-de-sac. Solar panels for cost savings of 50% or more on electric bill. Community includes walking paths, pool, spa, and fully remodeled clubhouse and new amenities! This home will truly amaze you and it's a must see.

11239 E Oberlin Way Scottsdale, AZ 85262

$1,100,000
3 Beds
2.5 Baths
2,826 SqFt
Status Active
MLS # 6757633
Property Type Single Family Residence
Price Type --
Location Location Location.... Private Cul de Sac lot backing to NAOS and the George ''Doc'' Cavalliere Park and all with direct access to the Pinnacle Peak and McDowell Mountain hiking trail systems. This is a chance to own this super popular floor plan in Echo Ridge. Bright open floor plan with 3 spacious bedrooms, 3 car garage, travertine tile, private salt water pool, separate electric spa, and all with great views. Vacant and ready for quick access and closing. Owner Broker Agent

6596 E Shooting Star Way Scottsdale, AZ 85266

$1,100,000
3 Beds
3 Baths
1,911 SqFt
Status Active
MLS # 6768991
Property Type Single Family Residence
Price Type --
Tucked in the foothills of North Scottsdale, behind the guard-gate of the Terravita Golf and Country Club community is this highly desirable Vallis floor plan with a separate Casita. Boasting a private setting including captivating views of Black Mountain and pristine desert landscape. The backyard oasis features a large covered patio for alfresco entertaining or intimate dining. Upon entering the home, you are greeted with soaring ceilings creating an open and airy environment. The thoughtfully designed layout seamlessly blends indoor and outdoor living. A social eat-in kitchen with bar seating and a casual dining space create an inviting atmosphere for both cooking and gathering. The luxurious primary suite offers a serene sanctuary with views of Black Mountain. The spa inspired bath with an oversized shower, dual vanities and lounge tub is perfect to relax and enjoy after the day's activities. The ensuite guest room in the main home is spacious with a roomy walk-in closet that guests are sure to enjoy. With a private courtyard entry, the separate casita could be used as a third ensuite bedroom or a private studio. Additional living spaces include a versatile den/office, a well-appointed laundry room with pantry shelving, a two-car garage with built in storage. Spanning across 823-acres and approximately 2,300ft above sea-level, the Terravita Golf and Country Club offers a full resort lifestyle. The clubhouse is the heart of Terravita's vibrant social scene. Residents enjoy fine dining experiences with breathtaking views of the golf course and surrounding mountains. The community hosts numerous social events, fostering a strong sense of camaraderie among residents.

26627 N 104th Way Scottsdale, AZ 85262

$1,100,000
3 Beds
3 Baths
2,112 SqFt
Status Active
MLS # 6758295
Property Type Townhouse
Price Type --
Beautifully appointed and nestled on a premium lot with breathtaking views of Pinnacle Peak and Troon, this fully-furnished, turnkey home showcases pride of ownership in every detail. Meticulously maintained, this residence blends luxury with comfort, creating the perfect desert retreat. The open floor plan features soaring 12' ceilings in the main great room, seamlessly connecting the interior to the outdoors with multi-slide doors that lead to a large covered patio. The master suite offers a private sanctuary with custom blinds, a spacious walk-in closet, and a spa-like soaker tub for ultimate relaxation. High-end finishes throughout the home include a custom chef's kitchen with elegant white double-stacked cabinets, a stunning 12' granite island, a fully tiled glass backsplash and stylish pendant lighting. Monogram appliances such as a 42 built-in refrigerator, wine fridge, dual ovens, hood vent, dishwasher, microwave, and reverse osmosis system make this kitchen both beautiful and functional. Rustic touches, like a charming barn door and barn wood accents, add warmth and character. Additional features include an epoxy-coated garage floor, built-in garage storage, water softener, and large laundry room with built in cabinetry, mud room bench nook and sink. Perfectly situated in a gated community, this residence provides a lock-and-leave lifestyle for those seeking convenience and peace of mind. Close to premier shopping, dining, and world-class trails such as Pinnacle Peak, Tom's Thumb, and Brown's Ranch, this desert oasis promises a modern, relaxed quality of life.

1112 E Arroyo Road Phoenix, AZ 85086

$1,100,000
4 Beds
2.5 Baths
3,181 SqFt
Status Active
MLS # 6760214
Property Type Single Family Residence
Price Type --
Are you ready for a home that has it all? A stunning 4-bedroom, 2.5-bath residence with tranquil mountain views, versatile entertainment area, RV hookups and a welcoming vibe! Nestled on an oversized one-acre lot, there is room to customize it or simply enjoy the gorgeously landscaped yard while relaxing around the wood burning firepit or from the extended covered patio! Inside there is an open and spacious family room with an entertainment niche, fireplace and high ceilings. The kitchen is functional and beautiful with wood cabinetry, granite counters, and newer Cafe appliances. The spacious master bedroom has patio access to the hot tub, two walk-in closets, and a lavish ensuite w/dual sinks. All of this plus 2 RV gates -1 dedicated RV parking with 50 amp, water, and sewer access.

4926 N 210th Avenue Buckeye, AZ 85396

$1,100,000
2 Beds
2.5 Baths
2,534 SqFt
Status Active
MLS # 6767287
Property Type Single Family Residence
Price Type --
Breathtaking Golf Course and Mountain Views! Luxurious Pool, Pergola, and Travertine Patio! This Traveler plan by Maracay is nestled in the picturesque tree-lined streets of Phase One in Victory at Verrado. Enjoy the blend of luxury and comfort, featuring thoughtfully selected options, upgrades, and timeless updates. Enjoy the cozy ambiance created by a stunning rock wall fireplace, along with ceiling fans, upgraded flooring, stylish lighting, premium appliances, elegant countertops, staggered cabinetry, and built-in speakers both inside and out. The patio is equipped with roller shades to enhance your outdoor experience. This home is a true gem, perfect for entertaining friends and family, who will appreciate the privacy of the guest suite complete with its own bathroom. Victory at Verrado embodies the essence of 55+ living, offering a vibrant community and exceptional lifestyle. Don't miss this incredible opportunity to make this dream home your own!

812 E Summerside Road Phoenix, AZ 85042

$1,100,000
4 Beds
4.5 Baths
3,824 SqFt
Status Active
MLS # 6771677
Property Type Single Family Residence
Price Type --
This modern beauty offers resort-style living at the foothills of South Mountain in the gated master-community Avance! This home is one you won't want to miss! Less than 2 years old, this home is a rare find with many upgrades. This sprawling single level home features 3 bedrooms all with en-suite bathrooms plus a den/office in the main home. An attached casita features a bedroom, living area, kitchenette and a full bathroom. Perfect for multi-generational living or a great private space for guests. Entering through the custom Portico iron gate, you'll find a spacious all-paved courtyard before entering the home. Large open floor plan features plenty of natural light, neutral color palette, and tile throughout the home. The gourmet kitchen boasts a large island with breakfast bar multiple ovens, gas cooktop, butlers pantry/coffee bar and large pass through pantry as well. This dream kitchen can be yours! Over-sized primary suite feature a custom accent wall, spacious spa bathroom, dual vanities and an expansive walk-in closet. The backyard features a large turf area, covered patio as well as huge patio paver space, dog play area on the side of the house and a gas lined for your outdoor grill. Great mountain views and community amenities make this home a must see! Other features include professional sealing of the home to prevent against bugs, etc. No carpet in the home. Porcelain tile throughout. The Reserve backs up to the properties across the street so there will never be any homes beyond this neighborhood. There is also an access gate at the end of the street for the South Mountain trails. Check out the infamous Mystery Castle that you can see from the cul-de-sac just a few doors down!

7642 N 177th Avenue Waddell, AZ 85355

$1,100,000
4 Beds
3 Baths
2,500 SqFt
Status Active
MLS # 6769258
Property Type Single Family Residence
Price Type --
Beautifully maintained home in the highly sought after community of Clearwater Farms! This lovely home offers 4 spacious bedrooms, 3 full baths, a unique split floorplan with one of the secondary bedrooms offering an attached bath and separate entrance/exit, this home definitely lends to the possibility of multigenerational living. You will also be pleased to find a spacious primary bedroom and en suite, two additional large bedrooms, fresh interior paint, newly updated fireplace surround, oversized 3 car garage with charging station, fresh exterior paint, large covered patio, beautiful sparkling pool, fully fenced for peace of mind, lush green pastures, 2 irrigated acres, mare motel, tack room, wash rack, riding arena and round pen..... enjoy ALL OF THIS while taking in the most beautiful Arizona sunset over the White Tank Mountains. This is truly country living at it's finest...just outside the city limits!

3339 W Ansel Road Laveen, AZ 85339

$1,100,000
4 Beds
4 Baths
3,200 SqFt
Status Active
MLS # 6777771
Property Type Single Family Residence
Price Type --
Nestled against a rugged mountainside with panoramic city views, this sophisticated, modern residence offers luxury living on over 1.25 acres of serene desert landscape. A brick driveway and walkway lead to the front entrance, framed by immaculate lighting that enhances the home's clean lines and contemporary architecture. The home features a spacious covered back patio, perfect for entertaining while enjoying breathtaking vistas. Inside, the attention to detail continues. Upgraded lighting and plank flooring flow throughout, creating a seamless, elegant atmosphere. The chef's kitchen is a culinary masterpiece with stainless steel appliances, double ovens, high-set stone countertops, a large pantry, and an exquisite waterfall island. A bonus room with an arched doorway can serve as a den, office, or formal dining room, offering flexibility to suit your lifestyle. The master suite is a private retreat, with direct access to the backyard, dual sinks, a soaking tub, a separate shower, and an enclosed toilet space. A secondary bedroom with an en-suite bath provides comfort and privacy for guests. The spacious laundry room is equipped with a sink and ample storage cabinets for added convenience. This exceptional property blends elegance, comfort, and style, with high-end touches like upgraded toilets and a large acre-plus lot, providing plenty of space for future enhancements. This home is more than just a residence; it's a tranquil escape where luxury meets nature.

3818 E Stacey Road Queen Creek, AZ 85142

$1,100,000
4 Beds
3.5 Baths
3,122 SqFt
Status Active
MLS # 6773153
Property Type Single Family Residence
Price Type --
Welcome to a masterpiece of modern luxury living, boasting over $250K in upgrades and situated on a nearly one-acre lot. From the moment you arrive, the impressive $40K paved driveway and circular drive catch your eye, surrounded by elegant wrought iron fencing that offers privacy and style. Step inside and be greeted by real oak wood flooring, soaring 14-foot ceilings in the primary living area, and upgraded art showcase recessed lighting, creating a spacious, airy ambiance. The double sliding glass patio doors open to the large paved patio and backyard, making indoor-outdoor living seamless and perfect for hosting. The kitchen is a true chef's delight, featuring $75K rustic maple cabinets imported from Oregon, complemented by $25K in granite countertops. The centerpiece is the grand stone-covered island, providing ample counter space for cooking and entertaining. Additional features include new stainless steel appliances, extended cabinetry for optimal storage, and a walk-in pantry complete with a separate standing freezer. The $10K stylish backsplash in the kitchen and bathrooms adds a sophisticated touch, while the upgraded lighting and electrical packages ensure every detail shines. The primary suite is nothing short of a private sanctuary, offering a luxurious soaking tub, a massive tiled shower with a built-in bench, and multi-function rain and adjustable hose showerheads. The suite also boasts a huge walk-in closet with direct access to the spacious laundry room featuring custom cabinetry. Throughout the home, plank-style tile flooring in the bathrooms, spray-in foam insulation for lower utility costs, and dual AC units enhance both comfort and energy efficiency. With an extended length three-car garage and no HOA, this home is the perfect blend of luxury and practicality.

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