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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17817 E Cindercone Road Rio Verde, AZ 85263

$998,000
2 Beds
2.5 Baths
2,186 SqFt
Status Active
MLS # 6741191
Property Type Single Family Residence
Price Type --
Nestled in the prestigious and highly sought-after community of Trilogy at Verde River, this exquisite residence offers unparalleled privacy and serenity. Positioned with no neighbors behind, this home boasts breathtaking mountain views that promise an ever-changing panorama of natural beauty along with a variety of birds and wildlife. The open and airy layout, with 10' ceilings and elegant high end engineered wood and tile & flooring throughout, flows seamlessly from room to room, bathed in natural light and framed by stunning vistas. The heart of the home is a gourmet kitchen, perfect for the culinary enthusiast, featuring generous counter space, and beautiful cabinetry. It opens to a spacious living area, making it ideal for entertaining or quiet evenings at home. Step outside to your own backyard oasis featuring a large travertine tile patio with remote control sunscreens, lush landscape, serene fountain, gas )firepit, and a secluded desert scape, perfect for outdoor gatherings and enjoying those incredible mountain views, sunrises, and sunsets. The 3-car tandem garage ensures plenty of space for vehicles and storage with a state-of-the-art water softener and RO system. Located in a community known for its active lifestyle and amenities including, resort and fitness pool, indoor and outdoor dining, spa, salon, fitness programs, 18 hole golf course, shops, concerts, and a neighborly atmosphere, this property is more than a home; it's a lifestyle. This is your must-see dream home!

2923 E Constance Way Phoenix, AZ 85042

$998,000
5 Beds
4.5 Baths
3,404 SqFt
Status Active
MLS # 6758439
Property Type Single Family Residence
Price Type --
Discover luxury living in the gated community of Blossom Hills, with stunning views of South Mountain Preserve. This home, on a north/south-facing lot, offers easy access to the I-10 and 60 freeways, and is close to top shopping and dining. The split, open-concept floor plan and flex spaces provide versatility for any lifestyle. With a 3-car garage and ample storage throughout, this home is as functional as it is elegant. Perfect for family gatherings or entertaining, the kitchen features double ovens, a large island, and multiple dining areas. The resort-style backyard includes a saltwater pool, play areas, and citrus trees. Located near top-rated schools, including Arizona Cultural Academy & College Prep.

357 W Haxtun Street San Tan Valley, AZ 85143

$998,000
5 Beds
4 Baths
3,200 SqFt
Status Active
MLS # 6780829
Property Type Single Family Residence
Price Type --
Nestled within the tranquil and exclusive Gated community of Whitewing at San Tan Magma, this property blends luxury and comfort seamlessly. The exterior boasts a sleek, modern Spanish design on over an acre of land. Inside, the spacious layout includes 5 bedrooms, 4 full bathrooms, offering a bright, open-concept floor plan. The chef's kitchen is thoughtfully equipped with abundant cabinetry, under-cabinet lighting, granite countertops, a large entertaining island, custom lighting, high-end appliances and a whole-home water filtration system. The dining and family rooms flow effortlessly family time and larger gatherings. The main residence includes a generous master suite with a large walk-in closet, soaking tub, separate shower and stylish finishes. MORE Three additional bedrooms and two full bathrooms complete the layout. Custom shutters are found throughout, along with an owned water softener system. A popular feature of this property is the 1 Bed 1 Bath attached guest house! This private space, connected to the main home, includes a kitchen with cooktop, full-sized fridge, quartz tops with waterfall edge and a separate living room with its own entrance, driveway and private courtyard, providing both convenience and privacy. The guest house can also be accessed directly from the main residence. The backyard is an entertainer's paradise. It features a sparkling pebble-tec pool, water slide, in-ground trampoline, custom gas fireplace, turf, outdoor kitchen with bar seating and plenty of room for an additional RV garage. Two double gates that access the backyard not only from the front driveway but also a side access double gate being the home is situated on a corner lot! The breathtaking views of the San Tan Mountains add to the property's allure with sunrises and sunsets that feel like works of art.

8345 N Dry Creek Road Prescott Valley, AZ 86315

$997,500
4 Beds
3 Baths
3,983 SqFt
Status Active
MLS # 6767228
Property Type Single Family Residence
Price Type --
SPACIOUS ENTERTAINER'S DELIGHT! PRIVACY, VIEWS and PAID SOLAR! Enjoy living in this Pronghorn Ranch, two-story home, on a premium cul-de-sac lot. GARAGE ENTHUSIAST, THIS IS YOUR HOME! Must see 800-SF, 4-car, extra deep tandem-garage, with gorgeous built-ins for ample storage, epoxy flooring, and ceiling racks; plus a covered two-car carport, an 8-foot RV gate with large side yard, additional driveway, and street parking for your guest. Too many upgrades to list. PAID SOLAR! Previous owner's spent over $120K in improvements, while the current owner's added much more, to include an out-door kitchen/bar, Jacuzzi and shed. A truly MUST SEE home with 3,983 SF, a great room, 4 bedrooms, 2.5 bathrooms, gorgeous office with double French Doors, and a loft. Enter into an impressive two-story foyer and formal living room, currently used as the pool room; next to the formal dining room, used as a game room; and again, the amazing office with gorgeous double French doors, and natural light on both sides of the room. The incredible great room includes a gourmet kitchen, with huge island, stainless-steel appliances, double-wall oven, microwave, gas cooktop, refrigerator and pantry. Enjoy the beautiful upgraded maple cabinets, stone backsplash and granite counters; along with a large eat-in kitchen area, and cozy family room with a floor-to-ceiling stone gas fireplace and beautiful built-in. A beautiful staircase leads you up to the loft, laundry room, hall bathroom, and three bedrooms; prior to walking into an exceptionally large primary suite, with a walk-out balcony to enjoy the view; separate soaking tub, walk-in snail shower, His & Her's vanities, plus His & Her's walk-in closets. More upgrades include a newer roof (2022), tankless-recirculating hot-water heater with remote controls, water softener and built-ins throughout. Mingus Mountain views, privacy with no one behind, an out-door kitchen, Jacuzzi, firepit, covered patio, and low-maintenance landscaping; along with all that Pronghorn Ranch has to offer. TRULY A MUST SEE!

7865 S Palm Drive Tempe, AZ 85284

$997,000
4 Beds
3 Baths
2,995 SqFt
Status Active
MLS # 6769563
Property Type Single Family Residence
Price Type --
Beautifully upgraded over 12 years of proud ownership, 4bed/3bath single level Coventry house welcomes you great Tempe living. All tile flooring on a split floor plan. Modern chandeliers through out the house. Floating entertainment wall will have your guests glaze for hours. Granite counter top, stainless steel appliances includes Gas cooktop. Backsplash looks great to enhance beauty of kitchen along with easy care. Walk in pantry adds great functionality to kitchen. Separate fridge to cool wine bottles. Ceiling LED lights through out the house. Central speaker system for most of rooms and back patio. All three bathroom redone. Master bathroom offers beautifully done vanity, illuminating mirrors and touch-less faucets. Standing shower with rain head. Bathtub offers its own music option, see through glass and jacuzzi jets. Second bathroom also offers bathtub with jets. Third bathroom was converted from powder to powder & standing shower. Shutter blinds or premium window treatment through out the house. 4th bedroom has Murphy bed which offers flexibility to be used as office if not hosting guest. Pool has newer variable speed pump and Gas water heater. Water heater changed in last one year. Permanent holiday lights under the fascia so you don't have to remove it. Metallic Proxy and premium cabinets in Garage. Extra storage shed. Both backyard and front has turf for easy maintenance. Pool has Spa, both pool-pump and gas heater replaced in last 4 years. Coventry offers huge community park and great community vibe.

1060 S Kellis Road Wickenburg, AZ 85390

$997,000
7 Beds
5 Baths
3,594 SqFt
Status Active
MLS # 6731869
Property Type Single Family Residence
Price Type --
Assumable 3% interest rate! STUNNING 360 views sitting atop a mountain peak! Double gated with access on 3 sides of property. Convenient to downtown & restaurants, yet still secluded! Remodeled with aesthetic/efficient updates. New metal roof, int. & ext paint, bathrooms updated & more! All usable horse property land, no big slopes/mountainsides! Ready for your family & your farm animals! NS facing, behind home is a wash & trails to ride on. Is 2nd income your goal? Walk out basement is the perfect design for a renter, hookups for stove,oven,fridge,& sink in basement kitchenette. Private access to living room & 2nd laundry room! Perfect for Airbnb, rodeo or snowbird renters. Not for you, RV Electrical h/u is ready for glampers! Sellers are motivated & ready for the next owners to enjoy!

14951 W Whitton Avenue Goodyear, AZ 85395

$997,000
3 Beds
2 Baths
3,304 SqFt
Status Active Under Contract
MLS # 6779093
Property Type Single Family Residence
Price Type --
Prepare to be enchanted by this stunning haven situated on a highly desirable cul-de-sac! Starting w/a 3-car garage & an RV gate. Meticulously maintained interior showcases tall vaulted ceilings, travertine flooring, upscale ceiling fans, plantation shutters, & a stone fireplace in the spacious living room. There's also an open den/office & a formal dining room, perfect for hosting gatherings. Designed w/entertaining in mind, the great room features a wet bar, media niches, surround sound, & French doors leading to the back patio. State-of-the-art kitchen is a dream for culinary enthusiasts, boasting abundant cabinets & cupboards topped w/crown moulding, stone backsplash, quartz & granite counters, an island w/a breakfast bar, & high-end SS appliances such as a double wall oven & cooktop. Don't miss the cozy breakfast nook! Owner's retreat is a true sanctuary w/double door entry, direct outdoor access, sitting area, & an elegant ensuite comprised of dual sinks, soaking tub, & a walk-in closet. Continue to your resort-like backyard, complete w/an extended covered patio, built-in BBQ, fire pit, built-in bench, citrus trees, & a refreshing pool & spa w/rock waterfall. This gem has everything you're looking for!

11409 N Braidwood Trail Casa Grande, AZ 85194

$997,000
3 Beds
2.5 Baths
3,187 SqFt
Status Active
MLS # 6773567
Property Type Single Family Residence
Price Type --
2.5 acres & huge RV Garage! Unparalleled grandeur blends functionality with elevated luxury & comfort in this one-of-a-kind home with Rastra Block, dramatic 12-18' high Viga beam ceilings,Venetian plaster fireplace,7 solar tubes,newer 15+SEER A/Cs, travertine tile, central vac, 8' knotty alder doors, exits in every room, speakers in/out/front/back & resort-like owner's suite. The sophisticated kitchen has cherry cabinets, luxurious granite, copper farm & prep sink, walk-in pantry, Gourmet Wolf gas range & pot filler, Bosch double ovens, warmer drawer & raised Bosch dishwasher. A breathtaking backdrop of nature showcases a solar heated pool & 20' x 26' ramada w/ built in bbq kitchen. The extended, over-height, 3 car garage has 220, an EV charge station & is reinforced for a view deck or maybe extra living quarters. The RV garage has 50/30/20/15 amp service, shelving, workbench and LED lighting. $9,000 brick walkway around 300 sqft synthetic lawn. Propane tank serves the Wolf gas range, fireplace and water heater. Features to help lower homeowner's insurance are close proximity to a fire hydrant, security system with cameras, french drains to redirect excess rainwater and the most impressive exterior Rastra block. The Rastra block is insulated with fire retardant foam and the 2x6 interior walls are insulated with batting for sound-proofing. Rastra block is not only fire, water, pest and mold resistant, it's energy efficient and provides superior indoor air quality. Whole exterior painted in 2021. Fortunately, this home is within a short drive from Nikola, Lucid Motors and Attesa Motorsports Complex projects yet, far enough away from any disruption they may cause to the surroundings. Such projects are expected to help transform Casa Grande from a relatively quiet community into a major commercial player in The Valley. Attesa Motorsports Complex and the Electric Vehicle Manufacturing Plant, Lucid Motors (formerly known as Atieva) are just a few major projects that have been announced.

50617 N 296th Avenue Wickenburg, AZ 85390

$997,000
4 Beds
3 Baths
2,986 SqFt
Status Active
MLS # 6664180
Property Type Single Family Residence
Price Type --
Beautiful secluded custom house & detached 3-car garage on 5 acres. The long concrete driveway, lined with Palomino Gold Rock, frames the house with a welcoming front covered patio & large Vegas. House is open floor plan with spacious kitchen, granite countertops & generous Knotty Alder cabinet storage. Live-in family or guests will enjoy a guest suite with kitchen area, living room, bedroom, full bath & private entrance. One bedroom is currently used as an office, furnished with a wrap-around desk & credenza. The Courtyard includes a stunning water feature by renown rock artist Pete Incardona. The 3-car garage is deep & oversized to provide for your toy storage & a workshop. The property has a private well & 30 stately Saguaro. Some furniture & furnishings included.

14466 N 14th Street Phoenix, AZ 85022

$997,000
4 Beds
2.5 Baths
2,832 SqFt
Status Active
MLS # 6753550
Property Type Single Family Residence
Price Type --
Welcome to a one of a kind home in the prestigious Moon Valley at the base of Lookout Mountain. Conveniently located, its tucked away in a Cul De Sac with rare panoramic views. Enter through the 12' front door, a bright entry and high ceilings welcome you with natural light. Walk into the large kitchen and great room, with 360 views of mountains. This well maintained home, includes updated features from top down window shades, an oversized waterfall island, new spa, 2 2020 Trane AC units and roof. (See features sheet) The outdoor area is ideal for entertaining or a private quiet evening to watch the sunset. Private, close proximity to premier restaurants, cafes, shopping, Lookout Mtn trailhead, Moon Valley and Pointe Golf Clubs. Come see this hidden gem best keep secret community of 85022

11889 N 113th Place Scottsdale, AZ 85259

$997,000
5 Beds
3 Baths
2,615 SqFt
Status Active
MLS # 6761992
Property Type Single Family Residence
Price Type --
GREAT LOCATION-(CACTUS-FLW BLVD) FULL UPDATE 2024JUST COMPLETED KITCHEN-CABINETS COUNTERS NEW BATH-SHOWER VANITIES- NEW FLOORING NO CARPET A 5BR-3 FULL BATHS-MASTER ON MAIN LEVEL ALONG 2ND BEDRM- EAT IN KITCHEN LARGE DINNING ROOM ! CORNER LOT -HOA allows short term rentals AIRbnb OK!- FIREPLACE-VERY LIGHT BRIGHT ON DEAD END STREET- FRENCH DOORS PEBBLE TECH POOL SCHOOLS A++BASIS PRIVATE 2 MILE AWAY, SHOPPING- ONLY MINUTES OF 101-FRANK LLOYD WRIGHT-CACTUS AREA ( 8 MIN 101-CACTUS) 25 MIN SKY HARBOR CLOSE TO WHOLE FOODS-COSTCO- AJS-TARGET KIERLAND 10 MINUTES OR LESS ZERO LOT LINE. NO COMMON WALLS, 2 FOOT AIRSPACE BETWEEN EACH HOUSE WITH SOLID FIREWALL BETWEEN EACH UNIT LOFT/ 5TH BEDRM CAN BE DONE IN 1 WEEK IF NEEDED ALSO $5500 lease purchase

30056 N 132nd Drive Peoria, AZ 85383

$996,000
3 Beds
3.5 Baths
2,771 SqFt
Status Active
MLS # 6757012
Property Type Single Family Residence
Price Type --
Stunning Executive home RARE Vantage model on the Mita side of Trilogy. 3 bed, 3.5 Bath+ Office, OWNED UPGRADED Solar W/ backup battery, NEW WAVE POOL & Spa!! An Entertainers Dream w/soaring 12+ ceilings,Open concept floor plan, Culinary kitchen w/granite island, Built in stainless fridge/appliances, pantry, elegant glazed tile backsplash opens to Great Room, office/fitness room w/ double french doors! Master Suite W/ french door leads to spa! Relaxing Spa style bath, w/soaking tub & shower- double toilet rooms & 2 Walk in closets. Professional landscaped Backyard W/ spa & Wave Pool (2024) covered patio W/ motorized sun shades, Laundry room off master, 2 light bright bedrooms both w/ attached upgraded baths 3 car garage! This home is a MUST See! Additional features of this beautiful home include: Transom Windows, Large Open concept floor plan, Neutral Paint, Upgraded flooring, Upgraded Bathrooms with luxury Tile/accents, Large granite island with storage, Glazed upgraded custom subway tile backsplash, Cabinets galore with pull outs, walk in pantry, The flex space could be an amazing office/fitness room w/ double french doors that open directly to the outdoor spa and pool! Privacy wall with glass inserts flows nicely to Great Room! Large laundry room directly off Master Suite features sink, counters and cabinets galore! Professionally landscaped Backyard (2024) with NEW therapeutic spa (2024) spa & 17 ft. Wave Pool (2024) that features heating/cooling and swim laps or relax with a glass of wine! Amazing covered patio w/ motorized sun shades, fire pit and room for entertaining! 2 light bright bedrooms both w/ attached upgraded baths, spacious closets and are private. Spacious 3 car garage with Electric Car charger, and OWNED upgraded Solar with 14.3 KW battery back up This home is a MUST See! Trilogy is an amazing gated active adult community that features 2 clubhouses, Golf, Fitness centers, indoor and outdoor swimming, clubs, pickleball, tennis, bocce & so much more

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