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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5170 N 186th Drive Litchfield Park, AZ 85340

$999,000
5 Beds
5 Baths
3,607 SqFt
Status Active
MLS # 6785244
Property Type Single Family Residence
Price Type --
Welcome to your dream home! This stunning 2-year-old property is packed with features and offers unparalleled luxury and functionality. Situated on the largest lot in the neighborhood (0.62 acres), this home boasts space, convenience, and energy efficiency, all wrapped in a modern design. The main house includes: 4 spacious bedrooms and 4 full bathrooms A dedicated office space, perfect for working from home A large kitchen with a walk-in butler's pantry, designed for entertaining and effortless meal prep. The separate casita features: 1 bedroom and a full bathroom, offering privacy and comfort for guests or multi-generational living. For the car or RV enthusiast, this home has it all: A 4-car garage with plenty of room for vehicles and storage An RV garage (776 sq ft) comple Welcome to your dream home! This stunning 2-year-old property is packed with features and offers unparalleled luxury and functionality. Situated on the largest lot in the neighborhood (0.62 acres), this home boasts space, convenience, and energy efficiency, all wrapped in a modern design. The main house includes: 4 spacious bedrooms and 4 full bathrooms A dedicated office space, perfect for working from home A large kitchen with a walk-in butler's pantry, designed for entertaining and effortless meal prep. The separate casita features: 1 bedroom and a full bathroom, offering privacy and comfort for guests or multi-generational living. For the car or RV enthusiast, this home has it all: A 4-car garage with plenty of room for vehicles and storage An RV garage (776 sq ft) complete with a kitchen and full bathroom. The outdoor space is an entertainer's paradise:A huge, wraparound backyard with endless possibilities. Fully treated turf with a lifetime warranty for a low-maintenance and lush landscape. Additional perks include Titan solar panels for energy efficiency, ensuring lower utility bills while staying environmentally friendly. This is a rare opportunity to own a home that combines modern amenities, expansive outdoor space, and practical features for every lifestyle. Don't miss out on this incredible propertyschedule your private tour today!

3257 S Red Sage Court Gold Canyon, AZ 85118

$999,000
3 Beds
3 Baths
2,742 SqFt
Status Active Under Contract
MLS # 6775971
Property Type Single Family Residence
Price Type --
Located next to a tree lined arroyo, this stunning Santa Barbara inspired villa with private SPOOL offers exquisite finishes typically seen only in custom homes. 12ft ceilings, solid core 8ft Alder doors, Cantera stone fireplace. Kitchen: quartz counters, Viking appliances, apron sink, two pantries, Alder cabinets, Asco dishwasher. Recent $100k backyard refresh: SPOOL with waterfalls & jets, outdoor fireplace & artificial turf area. Motorized shades create a screened in room. Detached Casita: bed/bath, den, custom built ins, mini fridge & views of #18 tees. Perfect lock & leave or year round retreat! Guard gated community, 36 holes of Jack Nicklaus golf, pickleball, tennis, bocce, fitness center! Sky Harbor: 30 miles, Mesa Gateway: 20 miles, Retail: 9 miles. This is a MUST SEE!!!

16640 N 54th Street Scottsdale, AZ 85254

$999,000 - 3Br/3Ba -  for Sale in Honeyridge Manor, Scottsdale
New
$999,000
3 Beds
3 Baths
3,060 SqFt
Status Active
MLS # 6785817
Property Type Single Family Residence
Price Type --
Welcome to this stunning 3,060 sq. ft. two-story home in the desirable Honeyridge Manor community! This beautifully updated property offers 3 bedrooms, 2.75 bathrooms, an oversized loft, vaulted ceilings, and a cozy fireplace. The updated kitchen (2018) features a walk-in pantry, modern appliances, and elegant counters. The split upstairs master suite includes a sitting area and walk-in closet. Outdoors, enjoy a private diving pool with an electric cover, a covered patio, and low-maintenance desert landscaping on a 12,581 sq. ft. lot. Additional highlights include a 3-car garage, RV gate, dual-pane windows, and potential for a private in-law suite. Located just minutes away from parks, schools, groceries, and freeways for easy commuting. Come and experience its charm for yourself!

1553 E Zion Way Chandler, AZ 85249

$999,000
5 Beds
3.5 Baths
4,019 SqFt
Status Active
MLS # 6766487
Property Type Single Family Residence
Price Type --
Elegance, Function and Location are beautifully combined in this gorgeous BASEMENT home located in the highly coveted Chandler neighborhood of Cooper Corners West. 5 Bedrooms, 3.5 full baths, 3 car garage with 2 EV Charges, Home Theatre with 2 ROWS OF SEATING, OWNED SOLAR, HEATED POOL and many more beautifully impressive features. The Main level includes the Primary bedroom with an extensively remodeled en-suite, Office, a large Dining room, 2 large bedrooms, remodeled full bath, family room, and powder room. Detailing includes 4'' wood shutters, spectacular lighting, tons of storage, wood floors and newer carpets. The heart of the home; the Kitchen, was extensively REMODELED showcasing CUSTOM Shaker cabinets with self closing slider drawers, Thermador gas range, Zephyr Pro hood. The 10.5 foot island is topped by a luxurious single granite slab providing an abundance of surface space for making those wonderful meals or just relaxing with family and friends. The Primary bedroom retreat leads into the Bali inspired en-suite. Customized with FLOOR TO CEILING 12x24 Shibusa tiles, full glass enclosure, both rain and wall shower faucet heads; you'll be transported to a tropical paradise. The seating bench, niche and dual vanity surfaces are topped in stunning Fantasy Zebra Marble accentuated with flowing black, white and jade colored veins. Store your outfits in the walk in closet custom built by California Closets. The basement includes a fantastic Dolby Atmos Theatre area equipped with a 120 fixed screen, 4k projector and 2 tiered rows of soft Leather recliners. With 2 more bedrooms, another fully remodeled bath, new carpets, wood flooring and extra space next to the Theatre; you won't run out of ways to enjoy your home with your friends and loved ones! The tranquil backyard has a sparkling heated pool with Baja step and bench, large heated gas spa and a built-in bbq center. Best part? Solar panels allow you to enjoy this wonderful house with minimal electric bills. Within a nice walk or short drive to San Tan Elementary and JHS, near two fantastic parks, quick skip to the Ocotillo area, Downtown Chandler and the 202; this home is centered in THE Perfect spot for all your needs. Welcome Home!

3234 Buckaroo Court Wickenburg, AZ 85390

$999,000
3 Beds
3.5 Baths
2,914 SqFt
Status Active
MLS # 6677714
Property Type Single Family Residence
Price Type --
REDUCED 100K. Amidst the captivating scenery of Wickenburg Ranch, discover a residence that epitomizes refined living and tranquility. This exquisite home showcases 3 generously sized bedrooms, each complemented by its own en-suite bathroom, ensuring the utmost comfort and privacy for all occupants. With 3.5 bathrooms in total, convenience is paramount. A spacious 4-car tandem garage offers ample storage and parking space. Step inside to find a seamlessly flowing layout, accentuated by expansive sliding glass doors that flood the interior with natural light and seamlessly merge indoor and outdoor spaces. Entertain with ease on the expansive covered back patio while enjoying the serene ambiance of the front courtyard. The heart of this home lies in its open floor plan, fostering connection and warmth throughout. The kitchen stands as a testament to luxury and functionality, featuring an upgraded design highlighted by a sizable island, perfect for culinary endeavors and social gatherings alike. Within this haven of contemporary living, every detail has been meticulously curated to elevate daily life to new heights of sophistication and comfort.

8502 E Cave Creek Road Unit 42 Carefree, AZ 85377

$999,000
3 Beds
3.5 Baths
2,846 SqFt
Status Active
MLS # 6718845
Property Type Townhouse
Price Type --
Nice opportunity (far below the comps) in the Beautiful SkyRanch Gated Community - Larger 2846 SqFt, 3Br with 3.5 Baths on Large 1/4+Acre Lot - Fully Furnished w/ Linens & Kitchen. Guest Parking, Well-Cared-For unit with Solid Wood Doors & Cabinets. Nice easy-Flowing floor plan. 2 Master Suites and 3rd Guest Br. Breakfast Nook and Dining Room. Transom Windows (front & back) for natural lighting and easy access to Garage from Kitchen. Tennis Courts & Doggie Park nearby.

1829 W Aloe Vera Drive Phoenix, AZ 85085

$999,000
4 Beds
3.5 Baths
3,078 SqFt
Status Active
MLS # 6744764
Property Type Single Family Residence
Price Type --
Extraordinary opportunity to own in the gated community of Desert Vistas at Sonoran Foothills. Entertaining made easy with this premium lot location, no rear neighbors & oversized 14,000 sf lot with a private pool, built-in BBQ, firepit, RV gate, & side yards larger than most parks. Home features an open great room concept with custom media wall, chef's kitchen, Sub-Zero fridge/freezer combo, gas range, & oversized kitchen island with ample space for all your closest friends. The primary bedroom is secluded and split from the remaining bedrooms & features his/her closets while the secondary master suite has a private bath & is a perfect mother-in-law quarters, game room, or man cave. Year-round amenities, community pool, club house, tennis/pickleball courts, dog park & splash Pad.

15860 N 61st Street Scottsdale, AZ 85254

$999,000
4 Beds
2 Baths
2,442 SqFt
Status Active
MLS # 6753364
Property Type Single Family Residence
Price Type --
Fabulous Ranch Style Home on Oversized Lot in North Ranch Community with Neighborhood Parks, Local A+++ Schools! Location! No HOA! This Home has Many Exquisite Upgrades Including Anderson Windows, Trane Air Conditioner ('21), Roof('23) & Solar (Owned) and Exterior was Painted with Durable Shield Paint That is Warrantied for 30 Years. Living Room has an Entertainer's Buffet with Wine Fridge! Enjoy a Resort Level Backyard with Play Area/Real Lawn, Pool, Seating Areas & Synthetic Lawn too. Spacious Kitchen with Large Island is Open to Family Room & Views to Backyard. Formal Dining is Set Up As Exercise Retreat! 3 Bedrooms are Spacious! Are you ready to Relax and Enjoy Your Resort Like Home?

5626 E Charter Oak Road Scottsdale, AZ 85254

$999,000
3 Beds
2.5 Baths
1,808 SqFt
Status Active
MLS # 6749888
Property Type Single Family Residence
Price Type --
Bored of cookie cutter? Here's the opportunity for your own secluded sanctuary in the heart of 85254! Updated home, surrounded by masterfully placed towering boulders that create unexpected walkways with custom sculptures, and calming Koi pond in front. Inside, enjoy open spaces with lovely views from nearly every window, including custom-sculptured rock waterfall flowing into the pebble-finish pool. Block construction, with 3 large bedrooms, dual-pane windows with metal Roll Shutter Systems (for security, privacy and additional thermal control), water softener, drinking water filtration, walk-in pantry, gorgeous quartzite counters, 2022 Roof and HVAC, and many other custom updates throughout! All this, minutes to The Valley's best shopping and dining - many school options - and no HOA!

3760 E San Mateo Way Chandler, AZ 85249

$999,000
4 Beds
3.5 Baths
2,914 SqFt
Status Active
MLS # 6765587
Property Type Single Family Residence
Price Type --
Sellers will credit back buyers $25k for buying down interest rate or closing costs etc. Voted Best on Tour in 2 seperate luxury home tours! Incredible home in the desired Andorra Gated Community! Home was recently completely remodeled which included opening up kitchen to the family room. See docs tab for upgrade list. Spent over $200k making it a one of a kind home! Enjoy your morning coffee in the adorable courtyard w/welcoming iron gate. Wood floors, plantation shutters, neutral paint, large baseboards, & modern light fixtures all are features worth mentioning. Entertain your guests in the ample living room, formal dining, or even the semi-open den! Chef's kitchen has a oversized center island, SS appliances, cabinets w/crown moulding, quartz countertops, stylish backsplash, pantry & breakfast bar peninsula for casual meals. The master suite is a private retreat with its own backyard access, walk-in closet, and lavish bathroom that includes two vanities with lighted mirrors, glass enclosure shower, & soaking tub. Paradise-style backyard offers covered patio, plenty of trees and bushes, pavers, grass areas, built-in BBQ, & sparkling blue pool. Must see!!

15042 N 49th Way Scottsdale, AZ 85254

$999,000
5 Beds
3 Baths
2,823 SqFt
Status Active Under Contract
MLS # 6728748
Property Type Single Family Residence
Price Type --
Amazing opportunity to own this rare 5-bdrm home has $300,000 of upgrades -- fully owned paid-off solar which generates so much energy that APS sometimes pays the home owner (see doc tab). At this new price, home will not last long. Spectacular turn-key home in a quiet area walking distance to Sunrise Middle and Liberty Elementary. Enjoy high quality vinyl flooring, two fairly new AC units, a new roof, high vaulted ceilings, a nice sized great room for social gatherings, a formal dining area and living room space, a resort style backyard with turf in the back, grass in the front an EV charger in the garage and even an adorable small play area under the stairs used as a secret playroom. No HOA. Easy access to the 101, Desert Ridge shopping and entertainment nearby.

8147 N 5th Street Phoenix, AZ 85020

$999,000
5 Beds
3 Baths
2,808 SqFt
Status Active Under Contract
MLS # 6736317
Property Type Single Family Residence
Price Type --
Discover this exquisite Frank Lloyd Wright-inspired mid-century modern home, where innovative architectural design seamlessly merges modern luxury with timeless elegance. Greeted by a large, brick courtyard entry, you are welcomed into a residence that embodies sophistication. From the moment you enter, the great room impresses with a modern stone fireplace and soaring wood-beamed ceilings that effortlessly flow into the gourmet kitchen, creating a grand and inviting ambiance. The kitchen is a culinary haven, equipped with top-of-the-line appliances including a 6-burner gas range w/convection oven, a spacious island w/breakfast bar, integrated stainless wine and beverage center, and striking black fusion granite countertops. An oversized walk-in pantry with a butler's counter further enhances functionality and storage, making this kitchen a chef's dream. Open the expansive 8' steel patio doors to reveal a covered patio, ideal for hosting gatherings or savoring peaceful outdoor moments. Beyond, your private backyard oasis awaits. Relax beside the pristine diving pool, surrounded by meticulously landscaped grounds that offer beauty and privacy. Situated on a corner lot with a long private drive, this 2268 sqft home features 4 spacious bedrooms and 2 luxurious bathrooms. The versatile two-car garage includes a studio apartment with kitchenette, offering a 5th bedroom and 3rd bathroom, and adding nearly 600 sq ft of additional living space perfect for guests, hobbies, or an office. Don't miss your chance to own a truly one-of-a-kind architectural gem in a prime, central location with access to great schools, dining, multi-use trails, shopping, and entertainment!

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