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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27762 N 96th Drive Peoria, AZ 85383

$1,075,000
5 Beds
3.5 Baths
3,750 SqFt
Status Active
MLS # 6728033
Property Type Single Family Residence
Price Type --
GATED OASIS IN PLEASANT VALLEY ~ PEORIA! This stunning property is a sanctuary of energy efficiency and beauty in a gated community near Lake Pleasant. Nestled in a serene neighborhood, the backyard oasis features lush landscaping, a large Pebble Tec pool, full BBQ kitchen, koi pond, hot tub, and fire pit. Enjoy morning coffee on the spacious patio surrounded by nature. Inside, the remodeled kitchen boasts a gas Wolf stovetop and ovens, a Sub-Zero fridge, and quartz countertops. The home also includes solar panels, ensuring comfort while saving on utility bills. Embrace luxury and sustainability in this elegant, eco-friendly haven with RV gate. Make it yours today! SEE DOCS TAB FOR PROPERTY FEATURES LIST There are 2 Solar Systems. One will be paid off at close of escrow. one is leased at $224.00 a month and buyer will assume lease. See Property Features List in Document Section

2610 E Nisbet Road Phoenix, AZ 85032

$1,075,000
4 Beds
4 Baths
2,243 SqFt
Status Active
MLS # 6746255
Property Type Single Family Residence
Price Type --
Amazing estate/horse property located in NE Phoenix. Located in an area of farms (neighbors sell eggs, honey, etc) yet live in middle of town! 3/3 bath main house, 1bd/1bth/kitchenette/laundry in guest house. This large horse property w/ no HOA has been nicely updated and boasts: has large diving pool, hot tub, automatic RV gate, 250sf guest house, 17433sf RV garage(40'x47.6' wide). huge panel, could be workshop! 2243 sf Home itself features an elegant entry room/living room, fresh travertine flooring, large metal entry door, gas & electric range hookup, newer AC for main house (2020), split floorplan, vaulted ceilings, new roof (2020), large, professional putting green, gorgeous built in bbq/firepit/pizza oven area, house, freshly painted!

23014 N 86th Street Scottsdale, AZ 85255

$1,075,000
3 Beds
3 Baths
2,341 SqFt
Status Active
MLS # 6758333
Property Type Townhouse
Price Type --
Located in highly desirable La Vida with community pool, park and tennis/pickleball court, this charming move-in ready home on one level is on a corner lot and offers a private gated entry, 3 bedrooms and 3 baths which includes a separate Casita and private, partially covered back patio. You will immediately feel at home in the spacious main house with numerous windows, living room with vaulted ceiling and fireplace, family room off of kitchen and separate dining area. Comfortable eat-in kitchen has granite tile countertops and stainless appliances. Main suite with access to the back patio has a large walk-in closet and bathroom with double vanity and separate tub and shower. And all is conveniently located close to shopping, dining, hiking, golf and the loop 101.

15550 E Cholla Drive Fountain Hills, AZ 85268

$1,075,000
5 Beds
3 Baths
3,075 SqFt
Status Active
MLS # 6770086
Property Type Single Family Residence
Price Type --
Welcome to your serene retreat in the heart of Fountain Hills! This stylish 5-bed, 3-bath home with new flooring and HVAC, offers the perfect opportunity to enjoy the quiet comforts of a secluded neighborhood, while only being minutes away from local attractions. Just minutes from downtown Fountain Hills and the world-famous fountain, you'll have access to shopping, dining, and lively community events. Outdoor lovers will appreciate being just a short drive from Fountain Park, Desert Canyon Golf Club, McDowell Mountain Regional Park, Scottsdale and so much more. Whether you seek a family home or a profitable TURN KEY vacation rental, this property offers the perfect blend of relaxation, style, and convenience. Come experience the best of Fountain Hills!

2910 E Sunrise Place Chandler, AZ 85286

$1,075,000
5 Beds
3.5 Baths
3,023 SqFt
Status Active
MLS # 6785592
Property Type Single Family Residence
Price Type --
Nestled in the sought-after Belmont Estates, this stunning Ashton Woods home offers a perfect blend of elegance, functionality, and an unbeatable location. Situated on charming tree-lined streets, it's just a short stroll or bike ride to Centennial Park's 11 acres of family-friendly amenities. The open floor plan features a luxurious chef's kitchen with deluxe appliances, a 5-burner gas range, convection oven, custom tile backsplash, and an oversized island perfect for gatherings. Extended cabinetry and a convenient butler's pantry/mudroom add both style and practicality. The spacious family room opens seamlessly to the backyard through a sliding glass wall, revealing a true entertainer's dream. Step into your private outdoor oasis featuring a deluxe built-in BBQ, a cozy gas fireplace, and a stunning luxury pool with custom water featuresperfect for relaxation or entertaining. The backyard is beautifully designed with low-maintenance artificial turf, mature Ficus trees providing exceptional privacy, and a travertine-covered patio that adds elegance to the space. The thoughtfully designed split floor plan offers five bedrooms, with one ideal as an office or den. This spacious home is full of style and surprises, including a cleverly designed hidden room concealed behind a bookcase, enhancing the home's practicality and charm. Perfect as a private retreat, home office, or additional storage space, this unique feature is sure to impress. The luxurious primary suite features a spa-inspired ensuite with a steam shower, an extra-deep soaking tub, split vanities, and two spacious walk-in closets. Secondary bedrooms each include walk-in closets, with bedrooms two and three boasting en-suite baths for added convenience. Throughout the home, elegant imported tile plank flooring enhances and adds architectural charm. Energy-efficient, pane-detailed windows bring in abundant natural light, creating a warm and inviting atmosphere. Completing the home is a generous 3-car tandem garage with epoxy floors and ample built in storage space. Perfectly positioned near shopping, dining, and recreation, this home offers the ideal blend of luxury, comfort, and modern living in a family-friendly neighborhood.

3417 E Dunlap Avenue Phoenix, AZ 85028

$1,075,000
4 Beds
2 Baths
2,323 SqFt
Status Active Under Contract
MLS # 6776212
Property Type Single Family Residence
Price Type --
Do you love the beauty of the Phoenix Mountain Preserve? Enjoy a spectacular, unobstructed view of beautiful desert wildlife from the privacy of your backyard oasis. This charming 4-bedroom home is located on a quiet north Phoenix cul-de-sac and sits on the edge of the preserve. The house could use some updating, but it has good bones, formal dining and living rooms, vaulted wood ceilings, plantation shutters. Easy access to the 51; get to the airport, ballpark, shopping, etc., in a matter of minutes. Don't miss this one.

35618 N 142nd Place Scottsdale, AZ 85262

$1,075,000 - 3Br/2Ba -  for Sale in Rio Verde Foothills, Scottsdale
New
$1,075,000
3 Beds
2 Baths
2,879 SqFt
Status Active
MLS # 6789309
Property Type Single Family Residence
Price Type --
NEW LISITNG,NEW PRICE! ENJOY THE ULTIMATE IN SECLUSION & PRIVACY! NEAR TONTO NATIONAL FOREST! GROOMED 3.23 ACRES OFFERING SENSATIONAL SWEEPING MT. VIEWS & MAGNIFICENT SONORAN DESERT BEAUTY!TUCKED AMONG ROLLING HILLS,TOWERING SAGUAROS & DISTANT SUN KISSED MT'S.! THE CENTERPIECE OF THE RANCH IS THE CUSTOM-BUILT HACIENDA STYLE HM W/ ITS ROMANTIC COURTYARD,IRON/GLASS FRONT DOOR,EXTENDED COVERED PATIOS, & VIEW DECK CAPTURING BREATHTAKING SUNRISES & SUNSETS.QUALITY BLT. CUSTOM HOME HAS NEW KIVA FP,WALL OF GLASS WINDOWS OFF GREATRM.,SPACIOUS KITCHEN,SOLID HICKORY CABINETS & ISLAND TOP,WALK-IN PANTRY w/RAINFALL GLASS DOOR.OVERSIZED 3 CAR GAR.GREAT HORSE SET-UP- 3 RAIL PIPE FENCING,2 STALL MARE MOTEL,2 TACK/HAY STORAGE RMS, AUTO WATERS,LIGHTS,TURNOUT,ROUND PEN.ROOM TO EXPAND! ESCAPE THE CITY LIFE! New 20 SEER A/C, roof re-coated, newer exterior paint. Property approved w/EPCOR. Transferrable to new owner. Comes w/99 year assured water supply. Hauled water system includes 2500 & 5000 gal. storage tanks. Tractor & quad avail. by separate agreement.

11178 E Mark Lane Scottsdale, AZ 85262

$1,075,000
5 Beds
4 Baths
3,691 SqFt
Status Active
MLS # 6607731
Property Type Single Family Residence
Price Type --
MOTIVATED SELLER! Home must close before years-end, and we are WELL under comps! One of the lowest prices per foot in the whole Troon area (and almost 3,700sf!). Home sold AS-IS (needs exterior paint & stucco repair). This stunning home in Troon North boasts LOTS of upgrades, including En-suite Casita (with separate entry!), travertine floors throughout, and bright granite counters. A true Entertainer's home w modern backyard including new putting green and a view deck with mountain/sunset/city views. The huge master suite is privately located upstairs with an adjoining sitting room and has its own balcony incl separate office. The home is perfectly situated on a cul-de-sac within walking distance to restaurants & boutique shops and is only minutes to Four Seasons Resort and Troon North. Please note: Troon does not allow street parking or driveway parking overnight and this home has a 2-car garage.

6963 W Aurora Drive Glendale, AZ 85308

$1,075,000
6 Beds
4.5 Baths
3,953 SqFt
Status Active
MLS # 6681725
Property Type Single Family Residence
Price Type --
Experience the Pinnacle of Living in Sierra Verde Estates. Discover Arizona elegance and comfort in this semi-custom Jackson Properties build home, nestled in the prestigious Sierra Verde Estates of Glendale. This property is designed to cater to buyers seeking an unparalleled living experience. With original owners, this home has been meticulously cared for and crafted to blend luxury, functionality, and an active lifestyle. PROPERTY FEATURES: Spanning 6 bedrooms and 4.5 bathrooms, including three en-suites, this residence offers expansive living options. The layout includes the highly sought-after first-floor suite with a walk-in closet and linen closet. The first floor boasts of three walk-in closets, ensuring generous storage solutions. The oversized primary suite is a testament to the masterful design, boasting dual sinks, a vast walk-in closet, separate toilet room, and a linen closet, ensuring functionality and comfort. Custom touches throughout such as bay windows in the kitchen and a third en-suite bedroom. Speaker wiring in the dining room and primary suite, the extended covered patio and the convenience of a laundry chute from the second floor into the massive laundry room. At the property's heart, the kitchen, bay windows overlook the oversized lot, complete with a pool, spa, built in gas grill, with built in ice chest, outdoor sink, gas fire pit, herb garden, mature citrus trees, generous grass area and paved entertaining spaces, perfect for hosting gatherings! Premier upgrades including big tickets items like; AC units replaced in 2013, 4.5 inch custom shutters throughout, a new roof in 2020 (includes a 10-year warranty), exterior paint in 2021, and exterior landscaping upgrades including remodeling pool to add pebble tech in 2007, this home is ready for you to move in! Check out the full upgrades list in the documents tab. Positioned directly in front of the community green belt, residents enjoy immediate access to volleyball courts, playgrounds, walking paths, and a serene lake, encapsulating the essence of an active and peace-filled lifestyle. LOCATION ADVANTAGE: Strategic proximity is displayed with the accessibility to all your necessities and community amenities. Located within 30 minutes of major sports facilities and just 25 minutes from Downtown Phoenix, this home is a hub for entertainment and urban convenience. TSMC within 20 minutes further underscores the strategic location for professionals. This Sierra Verde Estates masterpiece is not just a home; it's a lifestyle. With its thoughtful design, custom enhancements, and prime location, this home invites you to embark on a living experience defined by boundless opportunities. Seize the opportunity to make this exceptional property your own!

7005 W Meadowbrook Drive San Tan Valley, AZ 85144

$1,075,000
3 Beds
2 Baths
2,411 SqFt
Status Active
MLS # 6720069
Property Type Single Family Residence
Price Type --
EVERY HORSE LOVERS PARDISE! Don't miss the chance to make this mountain-view retreat your own! Experience the perfect blend of modern comfort and rural charm with this stunning 3-bedroom, 2-bathroom home on a 1.25-acre lot with breathtaking mountain views and NO HOA restrictions. Featuring an open-concept layout, the home boasts a spacious living area filled with natural light, a gourmet kitchen with stainless steel appliances, and a luxurious master suite. Outside, you'll find an expansive yard, a well-maintained 4 stall horse barn with turn out pens, and a three-car garage. Brand NEW H20 home water system! Never had a utility power over $250 due to Intergra Insulated Block built construction.

1187 E Tonto Drive Chandler, AZ 85249

$1,075,000
5 Beds
3.5 Baths
4,139 SqFt
Status Active
MLS # 6748253
Property Type Single Family Residence
Price Type --
In Alamosa Estates a Stunning Luxury Single Story Basement Home by Fulton. Updated into a Luxurious haven with many Amenities. New Carpet and Flooring, New Int/Exp Paint. Split Floor Plan: Main Floor has Formal Living Room; Gourmet Kitchen (Quartz Counter Tops; All New Appliances to include Dual Ovens; Gas Stove; Island Design w/Breakfast Bar; Family and Dining Area with Entertainment in Mind. Master Bedroom is Spacious; Master Bath Upgraded with new Counter Top, Dual Sinks, Walk in Shower, Custom Closet. Two Bedrooms located just off Kitchen w/Full Bath and Dual Sinks; Laundry Room is Large w/Storage, 2nd Refrigerator, Gas/Electric Dryer Hookup. Basement: Great Room w/Wet Bar,Refrige,Two Bedrooms, Full Bath ,Dual Sinks. 3 Car Garage. Ramada: Built in BBQ , Fire Pit, SPA Hookup.

38332 N 25th Avenue Phoenix, AZ 85086

$1,075,000
3 Beds
2 Baths
2,284 SqFt
Status Active
MLS # 6768117
Property Type Single Family Residence
Price Type --
This RARE 2.5 acre custom-built home with HORSE property privileges is a true gem, designed with attention to detail by its original owner. Situated on a sprawling 2.5-acre lot, the property offers complete privacy, making it a perfect retreat. Going up the spiral staircase balcony wraps around the exterior, providing 360-degree views of the surrounding mountains, ideal for relaxing or entertaining while enjoying the scenery. The home features an open floor plan, blending living, dining, and kitchen areas to create a spacious entertaining area. The interiors showcase the warmth of natural colors, including beautiful Alder knot doors and Alder cabinetry throughout the kitchen and bathrooms, adding a touch of rustic charm. High 10-foot ceilings throughout the home enhance the sense of openness, with recessed lighting to provide an ambiance in every room. For vehicle enthusiasts, the property is equipped with an 8-foot garage door leading into a generous 6-car garage, perfect for cars or a workshop space. The detached four-car garage offers extra room for recreational vehicles or other toys. The primary suite includes a five-piece bathroom, complete with a large soaking tub, a walk-in shower, dual vanities, and ample storage space. The split floor plan ensures that the primary suite remains private and separate from the other bedrooms. The home is designed to maximize comfort and convenience, blending luxury with practicality, all while offering unparalleled privacy amidst its natural surroundings. 2.5 acre lots in the area are hard to come by. Time for you to see it!

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