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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1624 E Briarwood Terrace Phoenix, AZ 85048

$1,069,000
4 Beds
2.5 Baths
2,821 SqFt
Status Active
MLS # 6756277
Property Type Single Family Residence
Price Type --
Welcome to this stunning, fully remodeled single-level home, completed within the past year and available furnished! This light-filled, open-concept home offers an ideal split floor plan with soaring vaulted ceilings, spanning 2,821 square feet of living space. Featuring 4 spacious bedrooms, 2.5 luxurious baths, and two distinct living areas, this home blends comfort and sophistication. The kitchen is a showstopper with a waterfall quartz island, custom counters, and a striking chevron glass backsplash. Every bathroom has been completely transformed with high-end finishes. Additional upgrades include brand-new flooring throughout, modern lighting and fixtures, and a newer HVAC system. Step outside to your private backyard oasis, perfect for relaxation or entertaining. With no rear neighbors, enjoy serene mountain views, a covered patio with an outdoor kitchen, and a gorgeous pool. This home is an entertainer's dream!

7112 W Redfield Road Peoria, AZ 85381

$1,068,000
5 Beds
3 Baths
3,561 SqFt
Status Active Under Contract
MLS # 6762897
Property Type Single Family Residence
Price Type --
Price dropped! Huge Upgrades. Over $163K Upgrades since Summer 2023! Sought after Tri-level Multi generational floor plan. New Windows Entire Home(45K), PAID SOLOR, 800+Sf Newly remodeled workshop(with New AC). New premium artificial turf, New pool heater - and more! This meticulously maintained house sits on a 0.54-acre lot within the Peoria School District. A beautiful kitchen featuring All Brand New appliances and luxurious tile floors. The primary suite boasts a private patio with stunning views of the heated pool and a Huge Sports Court. Upstairs are two additional bedrooms and a full bathroom; the lower level offers a spacious family room, two more bedrooms, and a full bath. The property includes a 3-car garage, gated RV and boat parking & extra RV space. This home truly has it all!

7344 E Keim Drive Scottsdale, AZ 85250

$1,065,000
4 Beds
3.5 Baths
3,353 SqFt
Status Active
MLS # 6728867
Property Type Single Family Residence
Price Type --
Come see this luxury 4 bed/3.5 bath home in the heart of Scottsdale! It is nestled within a gated community positioned on a desirable corner lot. This home is fully updated. The first floor consists of an open floor plan, vaulted ceiling, tiled floors, and three way fireplace. It has a gourmet kitchen, perfect for entertaining, that features a gas stovetop, double ovens, large SS refrigerator, oversized granite island and a dry bar. It has a formal dining area and eat-in kitchen. The primary bedroom and beautifully updated bathroom with jetted tub is on the first floor and overlooks the patio and pool. There is a second primary bedroom with an en-suite bath upstairs. All 4 bedrooms have walk in closets. The 2 car garage has epoxy floors and a large storage room. Make this your new home! You can't beat the location of this home, it is close to Scottsdale Fashion Square, Old Town Scottsdale, various fine dining establishments, and Gainey Ranch! You're also in close proximity to The McCormick Railroad Park, Kierland Commons, Phoenix Sky Harbor Airport and the 101 Freeway. Don't miss the opportunity to own this exceptional home in one of Scottsdale's most sought-after communities!

30448 N 65th Street Cave Creek, AZ 85331

$1,065,000 - 4Br/4Ba -  for Sale in S22 T5n R4e, Cave Creek
Open House
$1,065,000
4 Beds
4 Baths
2,908 SqFt
Status Active
MLS # 6696645
Property Type Single Family Residence
Price Type --
DISCOVER MODERN LUXURY in this newly remodeled 1-acre ranch property in Cave Creek, Arizona. With no HOA, all new septic in 2023, and horse rights -- This single-level home boasts fresh finishes throughout, plus a separate 1-bedroom casita with a kitchenette. Enjoy breathtaking mountain views and sunsets from the rooftop deck, or relax by the 3-car garage with EV charging and desert landscaping. This premier location combines tranquility and convenience with refined finishes.

96 E Lindsay Way Sedona, AZ 86351

$1,062,000
3 Beds
2 Baths
1,840 SqFt
Status Active
MLS # 6775849
Property Type Single Family Residence
Price Type --
Charming Turnkey Oasis in VOC: A Dual Purpose Dream Welcome to your new sanctuary-an impeccably maintained single-level home nestled in the vibrant Village of Oak Creek, where the breathtaking beauty of Castle Rock and Courthouse Butte greets you daily. This STR-friendly gem is more than just a home; it's a gateway to the perfect balance between personal retreat and investment opportunity, all without the burden of an HOA. Step inside and be enveloped by the spaciousness of the bright, open split floor plan, where stylish tile flooring create a seamless flow. The inviting Great Room features soaring high ceilings and an abundance of custom glass windows that bathe the space in natural light, highlighting the stunning wood beams that crown the room. The decorative entry door, flanked by gymnasium glass, welcomes you into this cozy sanctuary. Marvel at the intricate inlaid tile circle in the foyer and the shimmering tile surround of the fireplace design elements that set the tone for the custom finishes throughout. At the heart of this home lies the chef's kitchen, a culinary paradise equipped with granite countertops and a full backsplash. Stainless steel appliances, Samsung Fridge, Bosch Dishwasher, GE5-burner gas cooktop, a built-in microwave, compactor and custom cabinets including a charming wine rack make entertaining a delight. Enjoy meals in multiple dining areas, whether it's in the light-filled interior or al fresco under the covered patio just steps away. Retreat to the primary bedroom suite, a haven of tranquility featuring a luxurious bathroom adorned with tiled accent walls and Venetian plaster finishes. Indulge in dual vanities with raised stone sinks, a separate walk-in shower, and an oversized jetted tub, all complemented by an exquisite wall of glass and charming saloon-style doors to the water closet. Two cozy guest bedrooms share a beautifully designed full bath, and the bedroom adjacent to the kitchen, currently serving as an office, offers flexible space for your lifestyle needs. Step outside to your private covered patio, where entertaining takes center stage. Fire up the gourmet grill and savor the stunning vistas as you unwind in the shade, equipped with pull-down sun screens for those sun-drenched afternoons. With ample space for a pool, hot tub, and game area, this oversized lot is your canvas for outdoor living. Situated in a neighborhood perfect for walking, jogging, and wildlife spotting, this home is ideally located between two world-class golf courses and just moments from community amenities, including a dog park, grocery store, dining, shopping, and fitness options. Sold fully furnished.complete with tasteful decor, art, and wares: this home is ready for you to move in and make it your own. (Note: personal items in the garage do not convey.) Whether you seek a primary residence, a getaway retreat, or a lucrative investment opportunity, this VOC charmer is the perfect place to call home. Embrace the lifestyle you deserve in a home that seamlessly blends comfort and opportunity.

6924 E Canyon Wren Circle Scottsdale, AZ 85266

$1,060,000
2 Beds
2.5 Baths
2,444 SqFt
Status Active
MLS # 6719525
Property Type Single Family Residence
Price Type --
Move In Ready home in gated Terravita Golf & Country Club. This 2 bedroom + den home boasts custom southwest upgrades with custom designer touches. It sits on an easy care, premium, corner lot that backs & sides natural desert. It's just a quick walk, or drive, to the Country Club with workout room, restaurant, pool, tennis, pickleball & more! The greatroom overlooks the covered patio & beautiful desert. Both bedrooms are en-suite with walk-in closets, and the Master bedroom has a separate exit to the backyard. Enjoy entertaining guests in your private yard with a built-in bbq. RECENT UPGRADES: granite counters in kitchen & bar area, roof 2019, Main HVAC replaced Nov 2023, A3 Home Security, microwave, R/O, BBQ refurbished, irrigation. All furnishings available on separate bill of sale

1779 E Kaibab Drive Chandler, AZ 85249

$1,060,000
7 Beds
5 Baths
5,818 SqFt
Status Active
MLS # 6768175
Property Type Single Family Residence
Price Type --
SELLER CARRY BACK AT LOW INTEREST RATE AVAILABLE!! Come explore this spacious 7 bedroom, 5 bathroom estate in the exclusive gated community of North Barrington in south Chandler. Spanning 5,818 sqft on a massive 12,325 sqft lot, this home features a private, newly resurfaced pool, new turf, and expansive indoor/outdoor living spaces. Inside, enjoy a modern open floor plan, stunning bamboo flooring, and south-facing windows that flood the home with natural light. A main-level primary suite, guest suite, dual laundry rooms, and upgraded finishes throughout elevate the experience. Recent updates include a new pool surface, A/C units, and granite countertops. Don't miss this dream home!

12422 N 65th Street Scottsdale, AZ 85254

$1,060,000
3 Beds
2 Baths
1,796 SqFt
Status Active Under Contract
MLS # 6787829
Property Type Single Family Residence
Price Type --
Value is in the land. Horse property. Septic, no sewer connection. It has been a rental since 2004. Refrigerator, washer and dryer not included in sale

25706 N 20th Avenue Phoenix, AZ 85085

$1,060,000
4 Beds
3.5 Baths
3,252 SqFt
Status Active
MLS # 6761926
Property Type Single Family Residence
Price Type --
This highly sought-after Hailey model, meticulously built in 2021 by David Weekley in the Union Park community, offers modern elegance and thoughtful upgrades. The open great room is filled with natural light, featuring gorgeous flooring, ample living space, and a chef's delight with an oversized island, stainless steel GE appliances, and abundant of cabinet and counter space. The spacious primary suite includes a luxurious walk-in closet and en suite with a double vanity, and stellar walk-in shower. Outback is your own private oasis, complete with a sparkling pool, equipped with both a chiller and heater, surrounded by lush, low-maintenance landscaping. Additional features include a tandem garage, custom built in cabinetry, garage storage, toe-kick lighting, a spa and so much more!

9026 E Casitas Del Rio Drive Scottsdale, AZ 85255

$1,060,000
5 Beds
3 Baths
2,900 SqFt
Status Active
MLS # 6758221
Property Type Single Family Residence
Price Type --
Eloquently remodeled home! Thoughtfully redesigned, modern finishes,high-quality materials,custom cabinetry,upgraded lighting & enhanced storage solutions,resulting in an aesthetically pleasing environment.The updates provide enhanced comfort,style & value to the home. 5 bdrm.,3 baths,1 bed & bath downstairs.Loft has home office/kids work station area.Backyard is an entertainer's paradise, w/sparkling pool,soothing cascading waterfall,blt.in BBQ and cozy firepit, perfect for hosting cookouts or enjoying meals under the open sky.Whether you're taking a refreshing dip or lounging poolside,the combination of the inviting water & lush desert landscaping creates a serene oasis for relaxation & fun!Short walk to coffee shops,grocery store & fine dining!Click on more for list of upgrades. The following list show the extensive remodeling and upgrades performed throughout the home. Each area of the home has been thoughtfully redesigned with modern finishes, custom cabinetry, upgraded lighting, and enhanced storage solutions. Special attention was given to the balance between functionality and aesthetics, with premium materials and craftsmanship evident in every room. * Installed designer tile flooring throughout the main level, providing a cohesive and modern look. * Redesigned the staircase with a modern curved design, featuring iron railings and high-end finishes. Work completed by AZ Stairs. * Living Room- Removed old arches to create a more open and contemporary space. Installed designer lighting to enhance ambiance and modernize the room. * Dining Room- Added a built-in bar with custom cabinetry, featuring glass shelving from Rejuvenation. Integrated a wine rack display, ice maker, and wine fridge for a functional and stylish entertainment area. * Family Room- Installed new sliding glass doors. Upgraded the fireplace with a new design, creating a feature wall for added visual appeal. * Kitchen- Expanded the space with new custom wood cabinetry and an island. Installed quartz countertops and a matching backsplash. Added new appliances including a refrigerator/freezer, double convection ovens, gas cooktop, and a chef's sink. Enhanced with designer lighting and expanded the pantry with faux panel tiles, shelving, and outlets for small appliances. * Downstairs Bathroom- Upgraded with new shower tile, a vanity backsplash, a glass door, and designer lighting from Arhaus. * Laundry Room- Installed custom cabinetry. Added two side-by-side double stack washer and dryers for increased laundry capacity. Included a dog bath, mounted rod, and a folding ironing board for convenience. * Den/Bedroom- New tile flooring and designer lighting. Added wainscoting for a refined look. The closet was fitted with outlets and wide shelving for office equipment. * Upstairs- Installed upgraded vinyl tile flooring * Third Bedroom- Enlarged the closet for additional storage. Added mirror doors and a new fan/light fixture. * Fourth Bedroom- Improved the closet storage with enhanced organization solutions. * Bathrooms- Added faux tile panels that are removable, offering a stylish yet flexible design solution. * Master Bathroom- With the exception of minor updates, the original design was maintained. * Loft- Installed a custom cabinet desk area for a functional workspace. Added a new light fixture to brighten the area. * 3 Car Garage- Applied epoxy flooring for a clean, durable finish. Added a fridge and overhead storage to maximize functionality. * Backyard Upgrades- Installed designer lighting to enhance the ambiance. Re-stained and painted the cool deck for a refreshed look. * Cleaned up the landscaping in both the front and back yards for improved curb appeal. * Previous owner painted inside and outside and installed top of the line Lennox HVAC units.

4055 N Recker Road Unit 40 Mesa, AZ 85215

$1,060,000
3 Beds
3 Baths
3,176 SqFt
Status Active Under Contract
MLS # 6733651
Property Type Single Family Residence
Price Type --
Disregard days on the market,,,Buyer's contingency expired Discover this exquisite custom home nestled within the gated community of Country Club Estates at Red Mountain Ranch. Perfectly positioned on the 17th green, this residence offers stunning views of the signature golf course and breathtaking mountain vistas. Spanning over 3,100 square feet, this single-story home boasts soaring ceilings and a thoughtfully designed layout, featuring 3 bedrooms, a custom office with built-in cabinetry, and 3 full bathrooms. Step into the inviting great room, where formal dining and expansive windows create a seamless connection to the backyard oasis. The chef's kitchen is a culinary masterpiece, complete with custom cabinetry, a large island with seating, a Viking gas stove, Thermador double ovens, a built-in microwave and a KitchenAid wine fridge in the bar dedicated area. Adjacent to the kitchen, the cozy family room with a fireplace provides excellent views and a warm ambiance. The luxurious primary bedroom offers an oversized retreat with a large walk-in closet, sitting areas, and direct access to the backyard. The ensuite bathroom is a spa-like haven, featuring a massive marble shower, dual sinks, a private toilet room, custom cabinetry, and ample storage. The additional bedrooms are thoughtfully separated, each with walk-in closets and access to a beautifully appointed full bathroom.The outdoor space is a true sanctuary, featuring travertine pavers, an extended covered patio, a sparkling heated pool renovated in 2020, a gas firepit, and a built-in BBQ with an eat-up bar. This meticulously maintained property has it all! Enjoy the amenities of the Red Mountain Country Club, including a golf course, clubhouse with a restaurant, workout facilities, a pool, tennis, and pickleball courts. With so much to offer, this home is a rare find. Don't miss your chance to own this exceptional property!

4230 E Fountain Street Mesa, AZ 85205

$1,060,000
5 Beds
3.5 Baths
3,740 SqFt
Status Active
MLS # 6763086
Property Type Single Family Residence
Price Type --
*NEW PRICE IMPROVEMENT* Experience luxury living in the intimate community of Mahogany. As you drive through the gates, you'll be greeted by beautiful mature trees and impressive curb appeal. This gorgeous, spacious home is ideal for hosting your upcoming holiday parties! The grand double-door entrance welcomes you into the formal dining room and library, leading into the formal living area. Large windows and French-style doors provide a stunning view of the all-glass tile pool. The oversized kitchen features a built-in microwave and dual built-in ovens, offering ample counter space for all your culinary needs. This lovely home includes 4 bedrooms, 3.5 bathrooms, and a den with a double-door entrance and built-in bookshelves, which could easily serve as a fifth bedroom.

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