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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20802 N Grayhawk Drive Unit 1162 Scottsdale, AZ 85255

$1,049,000
3 Beds
2.5 Baths
2,305 SqFt
Status Active
MLS # 6757472
Property Type Townhouse
Price Type --
Nestled in the highly sought-after guard-gated community of Avian at Grayhawk, this absolutely gorgeous golf townhouse offers both luxury and location. Situated on a prime north-south lot backing to the 2nd fairway of Grayhawk Golf Course, you'll enjoy sweeping golf course and mountain views from your private patio, which backs to a beautiful desert landscape (NAOS). Step inside to an open great room concept, where the remodeled kitchen overlooks the spacious living area—perfect for entertaining. The unit was completely remodeled in 2021 with the latest high-end designer upgrades. New engineered hardwood flooring runs throughout the main living areas, complemented by new interior paint and plush newer carpeting in the bedrooms. The custom kitchen features brand-new cabinets, Alaskan granite countertops, and premium stainless-steel appliances by Dacor and KitchenAid. The fireplace in the great room has been re-stoned, and the space is illuminated by custom light fixtures, canned LED lighting, and a large ceiling fan. The home offers 3 bedrooms and 2.5 baths, including a split master suite for added privacy and a convenient Jack & Jill layout upstairs. The master suite boasts designer upgrades with an expanded shower w/stunning golf course views, a built-out closet, new vanity, custom mirror, new backsplash, and porcelain floors. Enjoy the comfort of a new ceiling fan and custom lighting in the owner's suite. The Jack & Jill bathroom upstairs has been completely remodeled with new cabinets, granite countertops, new sinks, and tile. The powder room features new lighting, designer wall paper and an added linen cabinet. All new window treatments downstairs and six new replacement windows enhance the home's aesthetic and energy efficiency. For peace of mind, a new roof and Trane HVAC system were installed in 2023. Located near upscale dining, shopping, world-class golf, tennis, and scenic walking trails, with easy access to Loop 101, this home is both beautiful and functional.

27234 N Javelina Trail Rio Verde, AZ 85263

$1,049,000
3 Beds
2.5 Baths
2,991 SqFt
Status Active
MLS # 6769557
Property Type Single Family Residence
Price Type --
Tranquil and private location in the gated golf community of Tonto Verde. Great room, open kitchen, formal & casual dining, two bedrooms, den/office, and multi purpose room/3rd bedroom. Two & half baths, large laundry room, view windows w/ Hunter Douglas window coverings. Fully equipped gourmet kitchen w/ Viking appliance. Propane cooktop/double oven. Primary suite with access to patio & heated spa. Ensuite guest bedroom, bath with tile shower & single vanity. Back patio has beehive fireplace, built in BBQ, wrap around patio with shaded areas for dining & relaxing. Front courtyard with mature landscaping and views of the 16th hole on the Ranch course. Some Furniture and Golf Cart included. Golf Memberships available for two championship golf courses. Pickle Ball courts to open soon.

3048 Ponderosa Road Overgaard, AZ 85933

$1,049,000
3 Beds
3 Baths
3,248 SqFt
Status Active
MLS # 6773845
Property Type Single Family Residence
Price Type --
Find your own Sanctuary on 3.01 acres right in Overgaard on paved street. This 3-br/3-ba home has an attached 2 car garage. Also, a 1,500 sf steel, insulated garage workshop with drive through rollup doors. Matching 20' Connex allows everything to have its shelter. Granite countertops, 14' ceilings, double-sided fireplace, tongue and groove, front and back decks, laminate flooring, large loft with pool table, completely fenced and lots of mature pines, juniper and cedar. Remodeled and refinished. Paved drive and RV parking, zoned heating, HVAC A/C, pellet stove and brick fireplace. Property can be split. Buyer to verify material facts of interest, Home warranty included. Seller is licensed real estate agent in Arizona.

3964 E Hummingbird Lane Phoenix, AZ 85050

$1,049,000
4 Beds
3.5 Baths
3,795 SqFt
Status Active
MLS # 6786969
Property Type Single Family Residence
Price Type --
Discover your dream home! This stunning Velez model in the desirable Aviano community features 4 spacious bedrooms, 3.5 luxurious baths, an office, and a versatile loft, perfect for modern living. As you enter through the elegant wrought iron gate and charming courtyard, you'll be greeted by an airy interior designed for both comfort and style. The expansive 3,795 sq ft layout boasts a gourmet kitchen, ideal for entertaining, and a cozy family room with hard wood floors that invites relaxation and connection. Enjoy outdoor living in your private backyard oasis, complete with ample space for gatherings and play. With its prime location, in the heart of Desert Ridge, near top-rated schools, parks, and shopping, this home is not just a place to live—it's a lifestyle. Don't miss the opportunity to make this exquisite property your own! An exceptional lifestyle is awaiting you at 3964 E Hummingbird Ln, nestled in the vibrant Aviano community. This stunning property not only offers a beautifully appointed home but also grants access to an array of resort-style amenities that enhance everyday living. Community Amenities Include: State-of-the-Art Fitness Center: Stay active with modern equipment and fitness classes/ Resort-Style Pools: Enjoy relaxation and fun in the sun at multiple pools / Tennis and Basketball Courts: Engage in friendly matches or join community sports events / Clubhouse and Meeting Spaces: Perfect for social gatherings, events, and community activities /Parks and Playgrounds: Family-friendly spaces for outdoor fun and relaxation.

7010 N 13th Place Phoenix, AZ 85020

$1,049,000
4 Beds
3.5 Baths
3,010 SqFt
Status Active
MLS # 6677302
Property Type Single Family Residence
Price Type --
PRICE REDUCTION!! EXTENSIVE UPDATES: Matte Glazed Porcelain Tile Throughout, Updated Baths, Updated Electrical, SmartTechnology, Extensive Updated Landscaping, Addition of 3 Windows, Full Primary Custom Closet Organizer System & SO MUCH MORE! With its unique floor plan, this home offers a refreshing departure from the ordinary. Inside you will find 4 bedrooms & 3.5 baths. The Primary is a retreat unto itself featuring custom wallpaper, multiple seating areas and a truly luxurious closet. Feel that fresh breeze in your very own Backyard Oasis! Dive into the Sparkling Pool to cool off on warm days, rinse off under the refreshing Outdoor Shower & gather around the cozy Fire Pit as the sun sets. Embrace the joys of indoor/outdoor living & create lasting memories.

3216 E Orange Drive Phoenix, AZ 85018

$1,049,000
3 Beds
2 Baths
1,580 SqFt
Status Active
MLS # 6739869
Property Type Single Family Residence
Price Type --
PRICE REDUCTION This charming home is located in the Biltmore corridor(North of Camelback road) on an extra large cul de sac lot with a backyard large enough for an addition. Dual pane windows, recessed lighting, maple wood flooring through-out and many upgrades makes for the perfect home for year-round residence or winter visitor. Located near the best restaurants, shopping, hiking, biking and walking trails Your clients won't be disappointed. LOCATION LOCATION LOCATION

16132 E Andrew Drive Fountain Hills, AZ 85268

$1,049,000
4 Beds
2.5 Baths
2,897 SqFt
Status Active Under Contract
MLS # 6741508
Property Type Single Family Residence
Price Type --
Motivated seller ! Great interior .36 acre corner lot in the heart of Fountain Hills! Owned 2024 solar system-cost for May-Sept averaged only $99/mo! Great home for entertaining! High ceilings thruout. Formal living & dining + great room style kit & fam rm. Island kit offers 42'' cabinets, stainless appliances, granite counters & lg walk-in pantry. Dine on the lg covered patio or relax in the pool & rear yard w/ multiple patios. Primary bd suite has sitting area, rear yard access & bath w/dual sink vanities, walk-in shower, soaking tub & custom closet. Plantation shutters thruout, water softener, R/O, Instahot faucet, security door, newer garage doors, garage cabinets, sun screens, gutters, fruit tree. New drip system. NEWER roof & ext paint. Some furniture avail on sep bill of sale.

37723 N 12th Street Phoenix, AZ 85086

$1,045,000
4 Beds
2.5 Baths
2,750 SqFt
Status Active
MLS # 6755512
Property Type Single Family Residence
Price Type --
This ranch-style home sits on 1.02 acres with beautiful curb appeal and more to offer inside. A paver driveway leads to an oversized 2-car garage, providing ample space for two full size vehicles and extended storage. The home comes equipped with two RV gates to meet all your recreational needs. Stepping inside the home, you will be met with a perfect blend of luxury and comfort. The 12-foot ceilings in the great room create an open atmosphere and bring in plenty of natural light. The kitchen is detailed with custom cabinetry, white quartz counters and perfectly chosen backsplash. Stainless steel appliances perfectly accentuate this modern kitchen and provide plenty of hosting opportunities with double ovens. A walk-in pantry is perfect for a coffee bar and endless large cabinets provide plenty of space for additional appliances. The main bedroom is a bit of a sanctuary with windows overlooking the mountains and a main bathroom that does not disappoint. The main bathroom has a soaking tub, large shower and dual vanities. The master bath leads to a large walk-in closet and laundry room. The home offers a split floor plan with two other bedrooms and bonus room on the opposite side of the home. The fourth bedroom doubles as a home office with statement barn-doors and custom cabinetry to house all your storage needs. Taking a walk through the backdoor, you can sit under the large back patio and watch the sunrise over the mountains. The backyard is perfect for outdoor entertaining with a gazebo, dining table and built-in Traeger smoker. The home offers a large area of artificial turf and a children's play area. The back portion of the property provides plenty of room to meet all your needs. Horses? RV Garage? Casita? Make your dreams a reality here! Come see this home and fall in love. Additional Details: - 400 amp service - City water - Spray foam insulation including garage - Extra large 18' insulated garage door - Recirculating pump for water heater - High efficiency water softener - Pre wired for speakers inside and outside - Soft close door and drawers throughout the home - Gas cooktop and fireplace - Pot filler - LED lighting throughout house - Spacious attic storage - Switched exterior outlets for exterior string lighting - Holiday light package - Pull down stairs for attic access - Kitchenaid appliance in kitchen - Luxury vinyl flooring - Synthetic Stucco - Anderson dual-pane windows

7325 E Paraiso Drive Scottsdale, AZ 85255

$1,045,000
2 Beds
2.5 Baths
2,113 SqFt
Status Active
MLS # 6780555
Property Type Single Family Residence
Price Type --
Stunning home in a gated Scottsdale community with no homes behind! This 2-bedroom, 2.5 bathroom gem boasts a chef's kitchen as its centerpiece, complete with a large island for prep work and breakfast bar seating. Office/flex room can be used in many ways. The kitchen features GE stainless steel appliances, quartz countertops, an electric cooktop with hood, and stylish pendant lighting. The primary suite offers a spa-like bathroom with dual sinks, a separate tub and shower, and a spacious walk-in closet. Enjoy a landscaped backyard with a built-in gas outdoor kitchen. The charming mudroom is ideal for hanging coats and bags or kicking off shoes, leading directly to a convenient laundry room. Appliances included. Dedicated office, which can also be a bedroom. Heated community pool and g Located within the gated Summit at Silverstone, residents enjoy access to heated community pools, a spa, and fitness facilities. The community also has a clubhouse for social gatherings and well-maintained walking and biking paths. This area is particularly attractive due to its proximity to top-rated schools, shopping, and dining options. Pinnacle Peak Preparatory School and Pinnacle High School are nearby, as is convenient access to groceries and daily needs with centers like The Pinnacle of Scottsdale shopping area and a Whole Foods market close by. Residents also benefit from the neighborhood's low-maintenance lifestyle, as the HOA covers exterior maintenance, including the roof and landscaping, allowing more time to enjoy the surrounding amenities

17187 W Piperton Street Surprise, AZ 85388

$1,044,400
4 Beds
3.5 Baths
3,743 SqFt
Status Active
MLS # 6680174
Property Type Single Family Residence
Price Type --
STUNNING NEVER LIVED IN TOLL BROTHERS HOME IN STERLING GROVE!! Priced below replacement cost! Features 4 beds, 3.5 baths, and 3,743 sq. ft., including a convenient main floor office. The chef's kitchen boasts upgraded white cabinets, a 48'' gas cooktop, double wall ovens, a vast granite island, and a spacious pantry. Sterling Grove isn't just a neighborhood, it's a lifestyle. Picture this: gated community, 24/7 security, and amenities galore - Nicklaus golf, 3 pools, 4 tennis courts, 13 pickleball courts, gym, fitness room, spa, you name it. Plus, there's a top-notch charter school right across the street. This pristine canvas awaits you! Be the first to enjoy this exquisite home nestled within Sterling Grove Golf & Country Club! Unwind in the luxurious master suite with a large tiled shower and custom tile. Enjoy the luxurious feel with the wide plank engineered-wood floors and upgraded carpet throughout. Upstairs, discover 3 beds and 2 baths; one bedroom could easily serve as a second master with the addition of a barn door. The owners installed a Guardian garage floor and high-end whole house water filtration system but never used them. This place is all about comfort and convenience, starting with upgraded spray foam insulation in every nook and cranny, including the garage walls. Say goodbye to those pesky temperature swings and hello to cozy consistency all year long! Techies, rejoice! We've got an upgraded 400-amp electrical panel ready to power up your gadgets and gizmos. And hey, if a pool is in your plans, we've already set up the electrical panel for you! Need to grab groceries or do some shopping? You've got Costco, Safeway, Sprouts, Hobby Lobby, Dick's Sporting Goods, TJMaxx, HomeGoods nearby with Target, Home Depot and even more stores on the horizon. Getting around? Piece of cake. The 303's just a hop, skip, and a jump away. And if you're into outdoor adventures, White Tanks Regional Park is practically in your backyard. Sports fanatics, rejoice! State Farm Stadium and Westgate are a short drive away, along with MLB spring training venues for your dose of America's favorite pastime. So, what are you waiting for? Come experience the laid-back luxury of Sterling Grove - where every day feels like a vacation.

5250 E Deer Valley Drive Unit 256 Phoenix, AZ 85054

$1,040,250
2 Beds
2.5 Baths
1,777 SqFt
Status Active
MLS # 6646796
Property Type Apartment
Price Type --
Furnished or /Unfurnished - Buyer's Choice. Lock and leave lifestyle. Pool View from oversized balcony featuring a vented built-in grill. Luxury amenities at The Luxe at Desert Ridge is located across from High Street + Desert Ridge Marketplace. - refined living experience. Clubhouse features meeting spaces, large entertaining kitchen & coffee bar. Relax in the movie lounge, stay fit in the 4400 sqft gym, or swim in the Olympic-length pool. Residents also enjoy additional amenities, including access to Toscana's staff service, heated pools, spas and fitness centers. Close to JW Marriott with access to Golf, 5 minutes away from Mayo Clinic, 10 mins to Scottsdale Qtr, & Kierland Commons, with easy freeway access. Artwork in Entryway and Bonus (Flex) room do not convey.

1130 E Peach Tree Drive Chandler, AZ 85249

$1,039,970
4 Beds
3.5 Baths
2,688 SqFt
Status Active
MLS # 6782352
Property Type Single Family Residence
Price Type --
New Home Chandler, Quick Closing, Backing to Open Space. Highly upgraded with woodlook Tile Floors , No Carpet on Single Level Quartz Counters See Photos, Backsplash, up to 12' Ceiling, Lovely Bathroom Counters and Framed Mirrors, Bathrooms in All Bedrooms, Light Exterior with Brick Accents...Quiet Area with 100 Homes to be Built. A Large Focal Point is 'Central Park' as you Drive into the Community Park has the Large Events Lawn, Pickleball Courts, Basketball, Tot Play Area, Fire Pit and Barn Like Remada. 3 Acres of Resort Like Ammenities! Home is at the North End of the Community with Green Belt Behind and Single Levels to Both Sides. Near both 202 Loop and I10 making access to San Tan and Chandler Mall a Breeze. Close to Chandler Med Center,work and Restaurant Pix of Model

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