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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6743 N 9th Drive Phoenix, AZ 85013

$1,029,715 - 3Br/3Ba -  for Sale in Ocotillo Lane, Phoenix
Open House
$1,029,715
3 Beds
2.5 Baths
2,695 SqFt
Status Active
MLS # 6707226
Property Type Single Family Residence
Price Type --
Welcome to Ocotillo Lane! Step into this contemporary two-story home featuring thoughtfully designed exterior architecture. Once inside you will be impressed by the 10ft ceilings and 16-foot sliding glass door in the great room, creating a perfect space for entertaining loved ones. Enjoy the gourmet kitchen equipped with gas appliances including a luxurious 42'' built-in refrigerator, quartz countertops, upgraded stacked cabinetry for extra storage, and a stylish tiled backsplash. Luxury touches include engineered wood and tiled floors, plus tiled showers in all bathrooms. Energy efficiency is top-notch with spray foam insulation and a tankless gas water heater, achieving an impressive HERS score of 53. Visit this beautiful home today!

17715 E Cindercone Road Rio Verde, AZ 85263

$1,029,000
2 Beds
2.5 Baths
2,316 SqFt
Status Active
MLS # 6764222
Property Type Single Family Residence
Price Type --
Extraordinary Brasada model home in the fabulous Trilogy at Verde River featuring breathtaking mountain views & state-of-the-art amenities! Inside this gorgeous 4 bedroom residence, discover a welcoming foyer leading into a bright great room with clean lines & a sleek design promoting a sense of openness & greater traffic flow. Tall ceilings, wood plank tile flooring, soft tan palette, recessed lighting, and an expansive sliding glass door connecting the interior with the outdoors are worth mentioning. The magnificent kitchen showcases white cabinets with crown moulding, subway tile backsplash, granite counters, high-end SS appliances, abundant storage, and an oversized island with pendant lighting over the breakfast bar. The owner's suite is a perfect retreat hosting a huge bathroom with dual sinks, soaking tub, built-in bench, and a step in shower. In addition, you'll find a sizable den behind an oversized sliding door. The large laundry room features attached cabinetry & a utility sink for added convenience. The backyard offers beautiful tile flooring for you to relax & enjoy exceptional sunsets under the covered patio. Live the lifestyle you've dreamed of here in paradise!

3574 E Glacier Place Chandler, AZ 85249

$1,025,800
5 Beds
3.5 Baths
4,846 SqFt
Status Active
MLS # 6783841
Property Type Single Family Residence
Price Type --
LIVE DESERT LUXURY in this 4,846 SqFt Entertainers Dream in South Chandler's Destination Lake Community... Old Stone Ranch. THIS DISTINCTIVELY CRAFTED SHEA HOME PORTRAYS EVERYDAY FUNCTIONALITY & DESIGNER LIVING in all ways... ULTRA CENTRALIZED SE VALLEY Proximity at Gilbert/Ocotillo Rd Corridor with must-have attractions/amenities surrounding your doorstep from all directions, French Villa Retreat Stone Architecture, UPGRADED MOVE-IN READY INTERIOR SHOWCASING CUSTOM UPGRADES FEATURES FINISHES EVERYWHERE, BUILDERS ''Symphony'' LUXURY GREAT ROOM RESIDENCE modeling Professional Chefs Gourmet Kitchen w/Built-in GE Monogram Appliances including 36'' Gas Cooktop, Dual Staircases w/Main Fairytale Overlook, Soaring 25' Ceilings at Grand Front Rooms, Multiple Bonus Rooms include downstairs Den/Flex Space, Downstairs Game Room w/the Ultimate Custom Wet Bar & 8' French Glass Doors for Indoor/Outdoor Festivities, Upstairs Game Room/Media Room (potential for simple 5th bedroom conversion), Secluded Owner's Suite w/Spa-Like Bath Amenities & Private Flex Space within for all your best uses...Workout/Yoga Studio, Nursery, Morning Coffee Conversation Lounge or perhaps a room to grow into a second owner suite Nordstrom's Style Walk-in Closet, Jack & Jill Bath/Bedrooms, additional oversized secondary bedroom, Transition outside and soak up your finished Backyard/Pool Oasis featuring a Cabo Blue Pebble-Tec Swimming Lounge Pool with 7ft Deep End & Boulder Waterfall, Extended Covered Patio w/Speakers, Backyard has significant room to further design all your best OUTDOOR USES & FAVORED Backyard Amenities,10,880 SqFt Interior Home Site modeling ideal North Backyard Exposure, Ample distance between neighboring rooflines and No loud Train lines, busy boulevards or power lines. EXPERIENCE IN PERSON. MAKE THIS LIMITED HOME OFFERING YOUR PRIZED SOUTH CHANDLER SANCTUARY! Old Stone Ranch has become a destination community known for its picturesque scenery and neighborhood charm. It's warm and inviting, full of friendly neighbors, engaging lifestyle and exceptional educational opportunities. Featuring Lakes, Streams, Fountains, Scenic Water Lined Walking Trails, Waterfalls & Bridges, Scenic Elm Canopy Tree Lined Streets, Decorative Stone Pillars & White Picket Fences, Multiple Parks & Children Play Areas, Covered Ramada with Picnic Tables, Ryan Elementary and NEW Arizona College Preparatory High School (ACP) a short walk away within the community. RESIDE AT ONE OF ARIZONA'S MOST DESIRABLE ADDRESSES... WHERE CHANDLER MEETS GILBERT. Nestled between the thriving City of Chandler & Town of Gilbert (both nationally recognized as Best Places to Live in America) residents take advantage of what's Beyond the Front Door. Scenic San Tan Mountains Views, Open Greenbelt Spaces & Playgrounds, Lush Community Landscaping, Excelling School Options EVERYWHERE CLOSE BY, Chandler's Citrus Vista Park (within the community), Veterans Oasis Lake & Nature Preserve for outdoor walking, running & biking adventures, Ocotillo & Gilbert Rd - Mixed-Use/Grocery Corridor, Nationally Acclaimed Gilbert Regional Park, Close San Tan 202 Freeway Access, NEW Lifetime Fitness Gym Selected to become a Platinum Point, greater upscale amenities than average... coming soon just down the street, Crossroads Towne Center includes Target/Harkins Theatre, San Tan Village - Outdoor Upscale Shopping & Dining, New & Established Southeast Valley Business Corridors and Mix-Used Developments, Chandler Municipal Airpark w/Runway for Midsize Private Jets, Vibrant Downtown Chandler & Old Town Gilbert's Heritage District Festivities, Phoenix-Mesa Gateway Airport - Second Growing Hub to Phoenix Sky Harbor... this is just the start!

13128 N 104th Place Scottsdale, AZ 85260

$1,025,000
4 Beds
2.5 Baths
2,643 SqFt
Status Active
MLS # 6784272
Property Type Single Family Residence
Price Type --
Welcome to Mountain View Ranch in sunny Scottsdale! Walk inside this spectacular two-story home boasting 4 bedrooms and 2.5 baths, nestled privately on an oversized corner lot with the only circular drive in the neighborhood. It's open concept floorplan creates an ideal setting for entertaining and making memories. Indulge your culinary passions with Viking appliances and gather around the eat in kitchen for family dinners. This home features vaulted ceilings, 2 natural wood burning fireplaces, tile flooring downstairs, carpet flooring upstairs and natural light throughout. Enjoy two spacious masters with the primary suite located downstairs. The primary bathroom has dual sinks, walk in shower, soak tub and large walk in his and her closets. The perfect layout for an in-law suite. The second master upstairs is just as grand. The bathroom has been completely remodeled with a luxurious walk in shower and separate soaking tub. Secondary bedrooms are sizable with all walk in closets. This home is packed with adequate storage. Step outside to the backyard oasis of your dreams. It's perfect for both entertaining and relaxation. Refreshing oversized pool with water feature to enjoy during the summers with a luscious grass area for the pets or kids to play. Cozy outdoor fireplace with thoughtful and low maintenance landscaping. Enjoy lemon, orange, peach and red guava trees. Oversized 3 car garage with more storage. The location says it all, with easy access to local amenities, upscale shopping, fine dining, top rated schools and the renowned TPC golf course. Be sure to check out the home updates and improvements in the documents section. This home is a must see!

33220 N 60th Way Scottsdale, AZ 85266

$1,025,000
5 Beds
2.5 Baths
3,656 SqFt
Status Active
MLS # 6660614
Property Type Single Family Residence
Price Type --
Experience luxury living in this stunning home with new front yard landscaping and a redesigned backyard oasis. Upgraded kitchen and bathroom cabinets, a gas cooktop, and newer GE appliances adorn the spacious kitchen overlooking the oversized family room with an updated fireplace. The backyard features travertine decking, an outdoor kitchen, new turf, landscaping, and pool equipment. Downstairs includes a bedroom with adjacent bath and office. Upstairs boasts an oversized master, three bedrooms, and a large game room opening to a resurfaced deck. 3-car garage with epoxy flooring. Walking distance to A+ schools!

22789 S 220th Street Queen Creek, AZ 85142

$1,025,000
4 Beds
3.5 Baths
3,396 SqFt
Status Active
MLS # 6766706
Property Type Single Family Residence
Price Type --
Introducing a remarkable residence nestled in the serene community of Ash Creek Estates. This one-story home, spanning 3,396 square feet on a generous 15,682 sq ft corner lot, is an epitome of meticulous maintenance and elegant design. Upon arrival, you are greeted by a welcoming courtyard that sets the tone for the rest of this luxurious property. Step inside to discover an open floor plan seamlessly connecting all living areas. Five spacious bedrooms offer ample space for rest and rejuvenation while three-and-a-half bathrooms ensure convenience at every turn. An additional flex space to be used as a den or formal dining room, offers even more flexibility. At the heart of this home lies a modern gourmet kitchen equipped with stainless appliances and a gas stove, ready to inspire culinary creativity. Beautiful upgrades throughout the house paired with high ceilings that enhance the sense of space and luxury. Outside, indulge in your private pool or enjoy the bounty from mature fruit trees adorning the property. This outdoor oasis offers endless opportunities for leisure and enjoyment under Arizona's sunny skies. Queen Creek presents a balanced lifestyle with its rich array of amenities. Outdoor enthusiasts will appreciate easy access to hiking trails, parks, and golf courses. Shopping centers, restaurants, cafes, and entertainment venues abound for those who love local conveniences. Come experience this impressive property in a highly sought after community in vibrant Queen Creek!

2311 E Coconino Drive Chandler, AZ 85249

$1,025,000
5 Beds
4 Baths
4,416 SqFt
Status Active
MLS # 6786335
Property Type Single Family Residence
Price Type --
The ultimate home for entertaining family and friends. At over 4400 sq ft, this home is filled with luxury and fun. This Harmony model by Shea Homes has 5 bedrooms, 4 full bathrooms, office, living room, family room, tech center, and dining room. A resort style backyard with large pool and water feature, a mechanics garage, workout room, and permanent holiday lighting. Upstairs there is a full home theater. Ceramic wood-plank tile flooring throughout the lower level. Agent is sister of seller. The incredible resort-like backyard boasts high entertainment value. Throughout the backyard, there are 5 outdoor cooking stations that include a built-in natural gas grill, wood burning pizza oven, the 6' vertical smoker, charcoal park-style grill, or campfire cooking equipment at the firepit. Family and friends will enjoy the food and ambience. Multiple built-in concrete tables provide excellent opportunities for relaxed dining and socializing under tropical lighting. The heated pool has a large integrated hot-tub in addition to a waterfall and slide. The mood is set with 7 natural gas torches throughout the yard and a natural gas outdoor fireplace. The 3-car garage area, you will find many high end mechanic class Gladiator cabinets on the left side, right side, and the back wall of the garage. An integrated sound system with sub-woofer provides the necessary tunes for completing any project. The black and grey checkerboard race-deck style flooring provides a good-looking non-slip surface. Gladiator wall mounted accessory rails provided quick hanging storage for yard tools, etc.. Bicycles are lifted on a ceiling mounted hoist and power cables descend from the ceiling on reels. At the back of the garage, you will find the enclosed work-out area with padded gym style flooring. The theater room you will find on the second floor with ample sound insulation and a robust glass door. Room amenities include a large static screen, projector, Klipsch speaker system, cabinetry, refrigerator, popcorn maker, and 7 reclining theater room chairs placed on a riser for optimal movie watching. Constructed with in-home networking and a structured wiring panel that is accessible in the laundry room.

1040 E Osborn Road Unit 602 Phoenix, AZ 85014

$1,025,000
2 Beds
2.5 Baths
2,718 SqFt
Status Active Under Contract
MLS # 6781197
Property Type Apartment
Price Type --
Discover luxurious urban living in this sophisticated residence at Crystal Point Tower, nestled in the heart of Phoenix. Located on the 6th floor, this home offers breathtaking, unobstructed views of the iconic Camelback and Piestewa Peak mountains. These sweeping panoramas provide a stunning backdrop to this elegant space, where natural light fills every corner, highlighting high ceilings, designer finishes, and an effortless flow from room to room. The beautifully appointed kitchen is outfitted with premium appliances, decorative shaker cabinetry, and generous counter space. Situated off the kitchen and living room is an oversized balcony, a serene space surrounded by beauty from sunrise to sunset. The spacious primary suite is a sanctuary of comfort, complete with an opulent en-suite bathroom and 2 walk-in closets, laundry room, and sitting area. The guest suite is well appointed with an oversized closet and private bathroom. A separate den is the perfect place for a home library, cozy tv room, or to work from home- complete with built-in bookshelves and exit to the patio. Enjoy resort-style amenities, including a shimmering pool, fitness center, and a 24-hour concierge service, community room complete with kitchen for events, residence parking garage, all within a private, secure building. Crystal Point Tower is ideally located near the best dining, shopping, and cultural experiences Phoenix has to offer, providing an unmatched blend of luxury and convenience. Make this exceptional property at 1040 E Osborn Road your private urban retreat.

27026 N Sycamore Creek Road Rio Verde, AZ 85263

$1,025,000
3 Beds
2.5 Baths
2,715 SqFt
Status Active Under Contract
MLS # 6751583
Property Type Single Family Residence
Price Type --
Experience the best single-level living in this magnificent greatroom floorplan in the highly sought-after Tonto Verde 55+ golf community. Nestled on a huge premium corner lot, this beauty flaunts stone detailing, a 3-car garage, an extended paver driveway, a spacious front yard, & a gated courtyard great for welcoming guests. You'll love the immaculately designed interior enhanced with high ceilings, recessed & chic light fixtures, ceiling fans, a floor-to-ceiling stone fireplace, wood-plank tile flooring, & multi-sliders to the back patio. The heart of this house is the stunning eat-in kitchen, outfitted with quartz counters, a mosaic tile backsplash, SS appliances, plantation shutters, rich wood cabinetry, a walk-in pantry, an oversize island with a breakfast bar & Breakfast room. Primary bedroom with sitting area, plantation shutters, & french door to the covered patio. Primary bath with double sinks, walkin shower, free standing soaking tub, and huge walkin closet. Split Guest bedroom with a private patio & full bath, could be a second primary bedroom with a large walkin closet. Powder room off the great room for guests. A beautiful $1,650,000 house with pool is being built behind this home.

335 S Red Rock Street Gilbert, AZ 85296

$1,025,000
4 Beds
2 Baths
2,478 SqFt
Status Active
MLS # 6725212
Property Type Single Family Residence
Price Type --
Welcome to your new home. Home has a gracious dining room with an awesome kitchen with vaulted ceilings. Secluded wing separates bedrooms from living area. Master bedroom has huge closet and the remaining rooms are oversized as well. Fully landscaped acre with a covered patio, storage area and an RV gate. Hurry on over as this will not last!

4037 S Taylor Drive Tempe, AZ 85282

$1,025,000
4 Beds
2 Baths
2,523 SqFt
Status Active
MLS # 6719672
Property Type Single Family Residence
Price Type --
Location Location Location...and when you're not out, spend time in your luxurious resort style back yard!! Entertain your entire family and all your friends under the huge covered patio with large wet bar, built-in BBQ Grill, flat screen TV, recessed lighting and ceiling fans. Keep cool in the freeform play pool which has plenty of in-pool seating, Baha deck, three water features and multiple umbrellas affording plenty of shade. Swim year round in the solar heated pool and entertain on the patio under the built-in infrared heaters. If you're into cars or own your own business, you'll love the detached garage which affords oversized access door to accommodate two auto lifts or store your work vehicles and trailers. So much more, you'll want to see it all in person!!! Don't miss out!

6411 E Presidio Road Scottsdale, AZ 85254

$1,025,000
3 Beds
2 Baths
1,895 SqFt
Status Active
MLS # 6751724
Property Type Single Family Residence
Price Type --
Welcome to 6411 Presidio, a beautiful home with 3 bedrooms, 2 bathrooms, and a hidden office. High quality furnishings for a casual luxury feeling are available on a separate bill of sale. Enjoy an abundance of natural light and a tranquil backyard, screened in patio, and a built in bbq. The office is located off the living room through a hidden door and features cabinetry storage, a desk, and bookshelf. Stainless steel appliances, 72'' fireplace and more. A true gem

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