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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4045 E Earll Drive Phoenix, AZ 85018

$999,000
4 Beds
2 Baths
2,155 SqFt
Status Active Under Contract
MLS # 6768773
Property Type Single Family Residence
Price Type --
WOW!! here we go! amazing buy in high demand area of Arcadia Osborn district. This special home was just fully updated in 2024 and has not been lived in since. Immaculate and ready to move in immediately. Very open floor plan with flex space living for private office or additional split bedroom. Gourmet kitchen with massive island bar with waterfall quartz countertops that you typically see in multi-million $ homes. Warning! your friends and family will want to come out and visit. Great entertaining yard with private play pool, turf yard and covered ramada. This was actually approved for a guest suite by the city and we have the contractor to finish it off as a ADU, casita or cute bungalow for some extra sq. footage. Huge laundry room with dog wash station. Custom pantry/ wine room too!!

1350 W Sierra Buena Court -- Show Low, AZ 85901

$999,000
4 Beds
3 Baths
3,750 SqFt
Status Active
MLS # 6687153
Property Type Single Family Residence
Price Type --
Experience the epitome of mountain luxury in this completely remodeled Sierra Pines Cabin, nestled on over an acre of densely forested land in Show Low, Arizona. Redefining comfort and elegance with a professional and thoughtful redesign, this cabin unveils a modern floor plan that includes a newly added fourth bedroom and a convenient walk-in pantry, enhancing both space and functionality. The heart of the home is the kitchen, where quartz countertops meet custom maple dovetail cabinets, creating a harmonious blend of style and craftsmanship. The Cafe style stainless steel appliances provide a gourmet experience for the home chef, while the new lighting and plumbing fixtures throughout the cabin add contemporary flair to the rustic setting. Central to the living area, a German... ... Schmear fireplace stands as a testament to exquisite design, offering a cozy ambiance and a stunning focal point. The second level soars with vaulted ceilings, amplifying the cabin's spaciousness and reinforcing the grandeur of mountain living. Protecting this treasure is a new 50-year metal roof, promising durability and peace of mind. Beneath your feet, luxury waterproof flooring offers both beauty and resilience against the elements, ensuring your home remains a sanctuary of comfort no matter the season. Outside, the sprawling land is a canvas of nature, with majestic trees that whisper tales of serenity and seclusion. This cabin does not just offer a home; it promises a lifestyle ensconced in the beauty of Arizona's high country and adventure.

6771 E Eagle Feather Road Scottsdale, AZ 85266

$999,000 - 3Br/3Ba -  for Sale in Terravita, Scottsdale
Open House
$999,000
3 Beds
3 Baths
1,905 SqFt
Status Active
MLS # 6786197
Property Type Single Family Residence
Price Type --
Discover this gem in a prime N Scottsdale location, next to charming Carefree. Nestled within a guard-gated community, this Home offers the perfect blend of serenity & vibrant active living. Enjoy resort-style amenities, including a heated pool, clubhouse dining, fitness & art, scenic trails, & the option to join a top-tier golf club. This highly sought-after Vallis floor plan is open, bright, & thoughtfully designed. The separate Casita, accessible through a private courtyard, adds versatility as a 3rd bedroom guest suite or hobby/studio. Step onto the sunny south-facing travertine patio, where low-maintenance blooming plants & cacti adorn your outdoor oasis. Move-in ready & impeccably maintained, this Home is offered with furnishings available. Experience the best of Arizona living!

11060 E Mark Lane Scottsdale, AZ 85262

$999,000 - 2Br/3Ba -  for Sale in Pinnacle Views At Troon North Phase 1 Lot 1-49 A-f, Scottsdale
Open House
$999,000
2 Beds
2.5 Baths
2,110 SqFt
Status Active
MLS # 6762244
Property Type Single Family Residence
Price Type --
Welcome to this tastefully remodeled single-story home in the prestigious Troon North community. Over $100,000 in upgrades have transformed this residence into an elegant retreat. With ideal north-south exposure, the home is filled with natural light, creating a bright and airy feel throughout. The spacious primary bedroom offers comfort and privacy, while the 2nd ensuite & office/3rd bedroom provide flexible living options. Both the ensuite and the third bedroom/office open directly to the serene courtyard, offering easy access to the outdoors. The backyard boasts a spool with a cascading water feature, surrounded by an updated landscape for added tranquility. Inside, the attention to detail is evident with an updated kitchen, modernized bathrooms, fresh carpet and new baseboard making this home move-in ready. Situated in the heart of Troon North, this property is a dream for outdoor enthusiasts. World-renowned hiking and biking trails, including Pinnacle Peak, Browns Ranch, and Tom's Thumb, are just minutes away. For golf lovers, the iconic Troon North Golf Course is right around the corner. Additionally, you'll be close to the Four Seasons Resort, along with excellent dining and shopping options, offering both luxury and convenience. This home truly has it all luxury, location, and lifestyle. It's a must-see to fully appreciate its beauty!

25803 N 8th Avenue Phoenix, AZ 85085

$998,900
4 Beds
3 Baths
3,030 SqFt
Status Active
MLS # 6654964
Property Type Single Family Residence
Price Type --
Price drop!!!! Motivated Seller offering 2% concessions with full price offer.This Exquisite Phoenix Home with Masterful Upgrades and Horse Property Potential!Welcome to this remarkable 4-bedroom, 3-bathroom home nestled on a sprawling 1-acre lot with endless possibilities. As you step inside, you'll be greeted by the impressive upgrades that make this property stand out.Stunning Master: The master bathroom has been thoughtfully remodeled, featuring a stunning and spacious shower that exudes luxury and modernity.Instant Hot Water: Enjoy the convenience of a tankless hot water heater with a recirculating pump, ensuring you have instant hot water at your fingertips, saving you time and energy. Fresh HVAC Unit: April 2023, a brand-new east wing A/C-Heat pump unit was installed. Outdoor Oasis: The property boasts professionally landscaped grounds with pavers and an irrigation system utilizing PVC for durability. You'll appreciate the hands-free fertilizing system and strategically placed lighting that enhances the property's beauty both day and night. No HOA: Embrace the freedom of no HOA restrictions, allowing you to tailor this property to your heart's desire. Generous Space: With 4 bedrooms and 3 bathrooms, there's room for everyone to enjoy their own space and privacy and don't forget the 10 foot ceilings and solid core doors. Horse Enthusiast's Dream: If you've ever dreamed of having horses or simply desire ample outdoor space, this property is your canvas to create your equestrian paradise. 4-Car Garage: Car enthusiasts and hobbyists will adore the oversized 4-car garage, providing ample space for all your vehicles and projects. Gourmet Kitchen: The oversized kitchen is a chef's delight, offering plenty of room for culinary creations and entertaining. This exceptional property offers a rare combination of modern comforts, outdoor potential, and a prime location in Phoenix. Don't miss this unique opportunity to make it your own.

6226 E Seco Place Cave Creek, AZ 85331

$998,500
4 Beds
2.5 Baths
2,222 SqFt
Status Active
MLS # 6784810
Property Type Single Family Residence
Price Type --
This charming property offers breathtaking views & peaceful rural living, just minutes from downtown Cave Creek. Enjoy incredible stargazing with the town's Dark Sky initiative! Fully fenced & surrounded by mountain views & a wildlife corridor wash, the home features natural lighting with large windows & 4 skylights. The river rock fireplace is sourced directly from the wash. The primary suite overlooks the horse facilities, while 3 additional bedrooms & 2.5 baths provide a practical layout. Equestrian amenities include an MD 4-stall barn, foaling barn, 150' x 75' arena, hay storage, tack shed & direct public trail access. An oversized 2-car garage with workshop area can be converted into a guest casita. The property also includes a pet enclosure off of the laundry room & a garden shed.

4680 S Robins Way Chandler, AZ 85249

$998,000
5 Beds
4 Baths
4,812 SqFt
Status Active
MLS # 6693223
Property Type Single Family Residence
Price Type --
*3X Best Home on Tour* Welcome to this stunning mini-mansion nestled in the desirable community of McQueen Lakes in Chandler. This spacious residence spans an impressive 4,812 square feet, offering room for everything and everyone. As you approach, the inviting ambiance of the neighborhood is evident with lush green grass, flower beds, and picturesque entryway. The centerpiece of the community is the tranquil man-made lake, winding through the neighborhood and providing a serene backdrop to everyday living. Step inside and discover a wealth of amenities designed for luxurious living. Entertainment options abound with a dedicated theater and theater lounge, perfect for movie nights with family and friends. Stay active in the convenient workout room, challenge guests to a game in the billiards room. A loft/flex space offers versatility for your lifestyle needs, while a dedicated office provides a quiet retreat for work or study. The home features four bedrooms and four bathrooms, including a spacious owner's suite and bath for ultimate comfort and privacy. The generous great room flows seamlessly into an open-concept kitchen, complete with a gas cooktop and ample space for culinary creations. Outside, the resort-style oasis awaits with a heated pool and spa, ideal for year-round enjoyment. The easy-maintenance front and rear yards ensure you spend more time relaxing and less time on upkeep. Benefit from the top-rated Chandler School District and proximity to two BASIS campuses, ensuring quality education for your family. Additionally, major employers such as Intel, Orbital ATK, and PayPal/eBay are just a short drive away, providing convenience for your daily commute. Don't miss this opportunity to own a piece of luxury living in McQueen Lakes. Schedule your private tour today and experience the epitome of Chandler living.

9674 E Cinnabar Avenue Scottsdale, AZ 85258

$998,000
3 Beds
2 Baths
2,375 SqFt
Status Active
MLS # 6715219
Property Type Single Family Residence
Price Type --
RARE OPPORTUNITY TO OWN ONE OF THE BEST FLOOR PLANS BUILT BY ONE OF THE BEST BUILDERS IN ONE OF THE BEST NEIGHBORHOODS ON SCOTTSDALE RANCH. FIRST TIME AVAILABLE IN 4 DECADES. UPDATED AND MOVE-IN READY WITH NEW INTERIOR PAINT, NEW KARASTAN CARPETING, AND NEW WATER HEATER. STRATEGICALLY PRICED TO ALLOW PERSONAL CHANGES OR IMPROVEMENTS WHICH WOULD ADD EVEN GREATER VALUE. THIS BEAUTIFUL HOME IS WITHOUT STEPS EXCEPT FOR THE SUNKEN LIVING ROOM. THE NEUTRAL COLOR SCHEME WILL COMPLIMENT YOUR BELONGINGS. SAFE AND SECURE NEIGHBORHOOD WITH THE LOCK AND LEAVE BENEFIT OF 6 SECURITY SCREEN DOORS. LARGE MASTER SUITE WITH SITTING ROOM AND WALK-IN CLOSET. EATING AREA IN KITCHEN PLUS FORMAL DINING ROOM. GOOD KARMA HERE-METICULOUSLY MAINTAINED BY ORIGINAL OWNER. IT CAN ALL BE YOURS.DON'T DELAY OR MISS OUT.

4934 N 210th Avenue Buckeye, AZ 85396

$998,000
3 Beds
3 Baths
2,719 SqFt
Status Active
MLS # 6787454
Property Type Single Family Residence
Price Type --
Discover this stunning 3-bedroom, 3-bath home by Maracay nestled on the 17th Fairway, offering the perfect blend of luxury and comfort. With over $150,000 in upgrades, this move-in ready Trendsetter plan is in the tree-lined streets of Phase One of Victory at Verrado. Embrace an active adult lifestyle in this beautifully appointed residence featuring an open floor plan tailored to your living needs. The great room flows seamlessly into a gourmet kitchen equipped with stainless steel appliances, double ovens, a wine refrigerator, and a spacious walk-in pantry, along with a formal eat-in kitchen area. The private Primary Suite is thoughtfully separated from the guest wing, providing a serene retreat that overlooks a resort-style backyard oasis. Enjoy breathtaking views of the golf course framed by majestic mountains from the great room, enhancing your living experience. Step outside to your private resort backyard, complete with an expansive covered patio, built-in BBQ, cozy fireplace, and a grassy play area, perfect for entertaining or relaxing. A spacious 3-car garage adds the finishing touch to this exceptional home. Don't miss out on this incredible opportunity to live the luxury 55+ lifestyle with the small-town feel of Verrado!

4320 E Calle Feliz -- Phoenix, AZ 85018

$998,000
3 Beds
2 Baths
1,478 SqFt
Status Active
MLS # 6782709
Property Type Single Family Residence
Price Type --
Don't miss this one! This is a great lot with a large backyard. 3 bed/2 baths. Plenty of room to add on! Such a cozy home! The hall bath is freshly updated with shower/new vanity/new tile floor. White kitchen cabinets, backsplash, hardware, new stove. Plantation shutters throughout. Hard floors throughout. Move in ready or plan an addition. Newer windows, 2018 A/C, 2019 Roof. The big items are all done for you! The new Global Ambassador is across the street, along with Steak 44 & The Village at Camelback Mountain. LGO is less than a mile! Hopi school district. Close to the airport and Biltmore Fashion Park. Backyard updates include new cement pad for new concrete ping pong table plus path to back gate and concrete cornhole game! Come have fun! No HOA fee! Live in it or rent!

7175 E Camelback Road Unit 305 Scottsdale, AZ 85251

$998,000 - 1Br/2Ba -  for Sale in Scottsdale Waterfront Residences Condominium, Scottsdale
New
$998,000
1 Bed
2 Baths
1,644 SqFt
Status Active
MLS # 6788904
Property Type Apartment
Price Type --
Experience the ultimate high-rise luxury lifestyle at the prestigious Scottsdale Waterfront. This exquisite home is Tree Top Level and very quiet and private. The spacious one bedroom, two bath is significantly larger than some 2-bedroom Waterfront units and includes a den which can easily be converted into a bedroom or office. Other features include a gourmet kitchen with SS Viking appliances, gas cooktop and new built-in refrigerator (2024), newer dishwasher (2023), a spacious living area with gas fireplace, and a primary suite with jetted tub.

5545 E Helena Drive Scottsdale, AZ 85254

$998,000
5 Beds
3 Baths
2,933 SqFt
Status Active
MLS # 6739222
Property Type Single Family Residence
Price Type --
LOCATION, LOCATION, LOCATION! Discover your dream home with this stunning 5-bedroom, 3-bathroom property on a tranquil cul-de-sac! This gem welcomes you with a meticulously manicured front yard, NEWLY FRESH PAINT, UPDATED ROOF, UPDATED FLOORING, a spacious 3-car garage, and an extended driveway, offering ample parking and impressive curb appeal. Step inside to sizable living areas designed for seamless hosting and entertaining. The home radiates sophistication with its vaulted ceilings, soothing paint, plantation shutters, beautiful wood flooring, and plush carpeting. The formal dining room, graced by a luxurious chandelier, sets the stage for memorable dining experiences. Continue onto the chef's paradise, the kitchen, featuring an electric cooktop, granite counters, rich wood cabinetry, recessed lighting, a prep island, a pantry, and a breakfast nook with a charming bay window. Upstairs, the main suite provides a serene retreat with double door entry, soft carpeting, and a lavish ensuite complete with dual vanities, a jetted tub, a step-in glass shower, and a spacious walk-in closet. Enjoy alfresco dining under the covered patio in the serene backyard with artificial turf and a built-in BBQ with an oven. Experience the grandeur that awaits in this magnificent residence!

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