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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10583 E Palomino Road Scottsdale, AZ 85258

$1,039,950
3 Beds
2 Baths
1,865 SqFt
Status Active Under Contract
MLS # 6763654
Property Type Single Family Residence
Price Type --
Stunning re-imagined remodel! Vibrant open floor plan is an entertainer's dream. Bold, new designed kitchen opens up into large living and dining room. Family room has an exquisite fireplace. Waterfall quartz countertop wraps custom cabinets, with plenty of storage and professional stainless-steel appliances. Large island has plenty of seating and is a great spot for conversation. The master bath has an amazing new upgraded walk-in closet with custom built-ins and a gorgeous modern tiled shower. This home has all new dual pane windows, front door, solid core interior doors, flooring, paint, baseboards, plumbing and lighting. Too much to list! Over a 1000 sq. ft. of brand-new turf installed in the tranquil backyard. Make this one yours before it is gone. Owner/Agent.

14401 N 29th Street Phoenix, AZ 85032

$1,038,000 - 4Br/4Ba -  for Sale in Cimarron Ridge Unit 7, Phoenix
Open House
$1,038,000
4 Beds
3.5 Baths
3,359 SqFt
Status Active
MLS # 6787467
Property Type Single Family Residence
Price Type --
Remodeled custom home w/ no HOA, room for everyone and your toys! Wonderful private oversized lot with gorgeous views. In town and close to schools, (Great Hearts Academy and Phx Basis), freeways, restaurants, entertainment, golf & hiking. Elevated corner estate sits on over 1/3 of an acre with unprecedented privacy. 3359 sq'-4brm, 3 and half baths, 2 fireplaces, wet bar, ''a secret room'', 3 car side garage w/plenty of storage, RV gate, and storage shed. The primary bedroom/bath has not 1 but 2 walk-in closets, a fireplace, steam shower, soaking tub & large private view deck. Private backyard w/diving pool & another elevated deck for relaxing or entertaining. Move in ready w/recent improvements to electric, roof, interior & exterior painting, decking & many more. Private Sanctuary!

2114 W Rowel Road Phoenix, AZ 85085

$1,036,822
3 Beds
3.5 Baths
2,983 SqFt
Status Active
MLS # 6724580
Property Type Single Family Residence
Price Type --
Quick Move-in Ready Home! Cachet Homes Encore at Union Park offers luxury semi-custom single-level homes in a prime location. This Bravo Plan three features 2,983 SF, 3 bedrooms, 3.5 baths, a 3-car garage, game room, den, and an open-concept kitchen with a large island and quartz countertops. Additional upgrades include desert front and backyard landscaping, Shaker white cabinets, luxury LVP flooring, upgraded tile and carpet, and more! Community amenities feature multiple parks, community pool, rec center, pickleball, along with convenient access to shopping, schools, and restaurants.

569 S May Place Casa Grande, AZ 85194

$1,035,000
5 Beds
4 Baths
3,820 SqFt
Status Active
MLS # 6786369
Property Type Single Family Residence
Price Type --
This exquisite masterpiece is a dream come true! Eye catching façade displays classic brick accents complemented by a 2-RV garage, 5-car garage, and a charming front patio, creating an ideal spot for tranquil mornings or afternoon relaxation. Enter into a world of sophistication with the open floor plan that boasts clean lines favoring a sleek modern design enhanced by high ceilings, wood-look tile flooring, a wall-mounted fireplace, and multi-sliding glass doors providing easy access to the back patio. Gourmet kitchen will impress you with recessed & pendant lighting, abundant white cabinetry topped with crown moulding, a large prep island with a breakfast bar, polished quartz counters, tile backsplash, and top-of-the-range stainless steel appliances. Owner's retreat is a true highlight! A cozy fireplace, direct outdoor access, and an elegant ensuite comprised of dual sinks, jetted tub, floor-to-ceiling tiled shower, make-up desk, and a walk-in closet complete the picture. As a bonus, this gem offers a fully equipped guest's quarter. Massive backyard with a covered patio has tons of possibilities for your landscape ideas and enough room for a pool. This haven is packed with features you're sure to love! Act now!

8446 E Laurel Street Mesa, AZ 85207

$1,035,000
4 Beds
3.5 Baths
2,690 SqFt
Status Active
MLS # 6778364
Property Type Single Family Residence
Price Type --
PREPARE TO BE ENCHANTED by this STUNNING single-level HAVEN, perfectly positioned in the sought-after Mountain Bridge Community! From the moment you arrive, this home impresses w/its beautifully manicured landscape, a 3-car garage each with beautiful epoxy floors, paver driveway & gated courtyard. Large open floor plan boasts wood plank luxury vinyl flooring, surround sound, & wall to wall sliding glass doors, creating a seamless flow between indoor/outdoor spaces, excellent for entertaining. Chef's kitchen is a true centerpiece, fully equipped w/recessed & pendant lighting, a prep island w/a breakfast bar, abundant cabinetry adorned w/crown moulding, a pantry, Cambria counters, top-of-the-line SS appliances, a Wolf cooktop gas stove, a wall oven, and a dining area w/a lovely bay window. Romantic primary retreat offers 2 walk-in closets & a private ensuite bathroom with a separate garden tub! Don't miss the open den, ideal for work or play too. The wonderful BACKYARD OASIS promises endless fun in the sun, complete w/a covered patio, putting green, and a refreshing salt water pool with color light choices for nighttime enjoyment, a rock waterfall and slide, as well as a spill over spa to relax in! This gem is the one for you! Come take a look before its gone! HOA has so many amenities to offer as well! Access to pools, gatherings, musicals, workout center, hiking trails, biking paths, playgrounds and more!!

6309 E Nisbet Road Scottsdale, AZ 85254

$1,035,000
4 Beds
2 Baths
2,409 SqFt
Status Active
MLS # 6762981
Property Type Single Family Residence
Price Type --
REMODELED and ready for its new owners! Welcome to 85254, AKA the ''Magic Zip Code'' thanks to its trifecta of perks—Scottsdale address, lower-priced Phoenix utilities/taxes, and Paradise Valley's world-class school district! No HOA! Please note: No Short-Term Rentals less than 60 days are aloud in the subdivision. BRAND NEW 5 Ton Trane AC Unit (Sept 2024) Both bathrooms FULLY REMODELED (2024) NO CARPET! BRAND NEW Luxury Vinyl Plank (LVP) flooring throughout (Sept 2024) WATER HEATER (2023) Step inside to discover a turnkey, resort style home with a wall of windows in living/dining, updates throughout, including fresh interior paint, modern finishes and stylish touches that elevate every corner of the home. The open-concept floor plan seamlessly connects the living, dining, and kitchen areas, perfect for both entertaining and everyday living. The kitchen features sleek countertops, stainless steel appliances, and ample cabinet space, making it a chef's delight. Both bathrooms have been thoughtfully updated with porcelain tile showers, new vanities, and contemporary fixtures that create a spa-like retreat. But the real gem lies outside in the beautiful backyard oasis. Spend endless days lounging by the heated pool, surrounded by lush landscaping and towering palm trees, creating a serene and private retreat. Whether you're hosting a barbecue with friends or enjoying a quiet evening under the stars, this backyard is sure to impress. Conveniently located just minutes away from Scottsdale Quarter, Kierland Commons, TPC Scottsdale (Phoenix Open), WestWorld of Scottsdale (Arabian Horse Show & Barrett-Jackson), you'll have easy access to premier shopping, dining, and entertainment options. Don't miss out on the opportunity to make this gorgeous property home!

8910 E Topeka Drive Scottsdale, AZ 85255

$1,035,000
4 Beds
2 Baths
2,583 SqFt
Status Active
MLS # 6744928
Property Type Single Family Residence
Price Type --
Amazing opportunity to own in North Scottsdale Estate at Ironwood Village. This lovely 4 bedroom, 2 bath, 3 car garage residence is generously proportioned W/ 2,583 sq ft single story. Enter the home and be greeted by vaulted ceilings, spacious, living room & formal dining. The bright kitchen w/ breakfast nook & abundant family room w/ stone fireplace & wet bar are perfect for entertaining family & friends! The main bedroom is a delight to rest & relax w/ its lavish primary suite, walk-in closet, dual sinks, glass shower & access to patio. The backyard is a mini paradise comprising a covered patio, beautiful pool & grass area. New roof, new water RO Syst., HVAC & carpet! You will love this place! Just minutes to private, charter & public schools, Scottsdale Quarter, Kierland Commons and lots of golf courses & restaurants! This home has it all! You will love it!

790 E Desert Inn Drive Chandler, AZ 85249

$1,035,000
5 Beds
3.5 Baths
3,729 SqFt
Status Active
MLS # 6742021
Property Type Single Family Residence
Price Type --
Welcome to the highly sought-after Fieldstone Estates, a gated community renowned for its exclusivity, 126 homes with oversize lots. Three beautiful green belts to enjoy a peaceful walk, ride a bike and lots of grassy areas for kids to play ball. This exceptional home, held by its original owners, is meticulously maintained. Main level features a bright, open floor plan, 10ft + ceiling height, a convenient bedroom and half bathroom. Upstairs, you'll find 9ft ceiling, spacious loft, primary suite, three additional bedrooms and three full bathrooms. Recent upgrades include brand-new windows, newer three HVAC systems. The roof has been inspected and maintained in 2024. The exterior has been freshly painted, and the interior boasts a recent coat of paint as well. The kitchen has painted cabinetry with a contemporary backsplash. Updated bathrooms with porcelain tiles and new fixtures. Step outside to an immense and stunning backyard, with elegant pavers and lush turf, designed for relaxation and entertainment. Enjoy the heated pool and spa. Situated on a corner lot, the property backs onto a serene greenbelt, offering privacy and beautiful views. Don't miss this opportunity to own this beautiful home in one of the most desirable communities around!

300 E White Mountain Boulevard Pinetop, AZ 85935

$1,030,000
4 Beds
2 Baths
2,806 SqFt
Status Active
MLS # 6640190
Property Type Single Family Residence
Price Type --
Includes a singe family home and 4 condos. Home is 2806 Sq ft with 2 car garage built in 1956 with a large back deck overlooking Billy Creek. The 2 story condo with 4 units built in 1993 with a rustic design, each unit has 2 bedrooms and 2 bath and a deck. Condos have gas heat, house has gas heat in one bedroom and gas heat hot water pipes runnng in concreate floors. Conos MLS #6640184

9806 W Rock Springs Drive Peoria, AZ 85383

$1,030,000
5 Beds
3.5 Baths
4,623 SqFt
Status Active
MLS # 6728111
Property Type Single Family Residence
Price Type --
Seller willing to offer $ credit for closing costs and rate buy-down! Over $200k invested into the backyard alone! See features list for full breakdown. This 5bed+Den/3.5bath/4,623sqft home is the epitome of luxury living & is designed for those who love to entertain. The backyard oasis is a dream, featuring a custom heated AND cooled pool w/ fountains, deck jets, baja step & copper fire pits to set the scene. Turkish marble decking throughout w/ built in gas & charcoal grills in the bar. Step inside to discover beautiful modern finishes, a gourmet chef's kitchen w/ induction stove & double ovens. Custom built primary closet has shoe wall that holds 150 pair! Gated community allows RV parking. 50 amp RV hookup w/ widened gate. 3yr old HVAC units & solar panels create modern efficiency.

3159 E Coconino Drive Gilbert, AZ 85298

$1,030,000
5 Beds
4.5 Baths
4,770 SqFt
Status Active
MLS # 6742009
Property Type Single Family Residence
Price Type --
Introducing this exquisite residence, cherished by its original owners and nestled on a sprawling half-acre lot. This stunning home offers ample space and luxury for all, featuring a formal living and dining room, a cozy family room, and an expansive 500-square-foot loft. The gourmet kitchen is a chef's dream, boasting abundant cabinetry, a walk-in pantry, a butler's pantry with a dedicated sink, and a large center island perfect for culinary creativity. Equipped with a double wall oven and a nearly new Frigidaire Gallery 36-inch 5-burner cooktop, this kitchen is designed for those who love to cook. Cleanup is effortless with the recently installed Frigidaire Gallery dishwasher. The main floor is home to a luxurious master suite with private access to the back patio. The master bathroom features a separate tub and shower, dual vanities, and two spacious walk-in closets. An additional en suite bedroom is also conveniently located on the main level. The laundry room is expansive, lined with cabinets and equipped with a utility sink. Upstairs, you'll find three more bedrooms (originally four, with two combined), two bathrooms each with double sinks, a dedicated office area, and a loft with a wet bar. Parking is never an issue with two 2-car garages and a driveway that accommodates up to 10 vehicles. The backyard is a true paradise, centered around a 26,000-gallon heated pool and spa, complete with a 10-foot waterfall and slide. The extended patio, adorned with LED color-changing bistro lights, sets the perfect ambiance for any occasion. A second patio features a sandy beach-like area with a fire pit, and there's plenty of turf for kids, pets, or anyone looking to enjoy the outdoors. For those who crave even more recreation, the 272-acre Gilbert Regional Park is just next door, offering tennis and pickleball courts, playgrounds, ramadas, a lake, and a performance pavilion for concerts. This home truly offers the best of luxury living and outdoor adventure.

1934 E Cypress Tree Drive Gilbert, AZ 85234

$1,029,995
6 Beds
3 Baths
3,900 SqFt
Status Active
MLS # 6760899
Property Type Single Family Residence
Price Type --
Discover the charm of this beautiful 6-bedroom basement home in a desirable cul-de-sac within a secure, gated subdivision. Step inside to find elegant wood flooring in the entryway, hallway, and kitchen, all other living areas have neutral carpet. The main level offers a spacious master bedroom and on-suite with a separate tub and shower. Also offers an additional 2 bedrooms, one bath, and a private office. The full basement provides a 20x14 game room, a full bath, and 3 additional large bedrooms. Enjoy outdoor living with a lush green backyard and large Pebble Tech diving pool, complete with a kid-friendly Baja shelf. And much more! The outdoor entertainment island is perfect for gatherings, and a spacious shed/workshop casita includes a private restroom and outdoor shower for guests. This exceptional community offers a beautiful clubhouse and impressive amenities, including three indoor racquetball courts, a cardio exercise room, weight training room, banquet and meeting rooms, eight tennis and pickleball courts, and both a junior Olympic swimming pool (heated for year-round) and a unique tropical lagoon swimming pool with a sandy beach and waterfalls. Enjoy walking distance to private community lake access, playgrounds, a community garden, and basketball courts. Don't miss your chance to experience the perfect blend of comfort and luxury in this remarkable lakeside home!

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