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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5131 E Gallop Way Scottsdale, AZ 85254

$995,700
4 Beds
4 Baths
2,472 SqFt
Status Active
MLS # 6787435
Property Type Single Family Residence
Price Type --

9679 E Cavalry Drive Scottsdale, AZ 85262

$995,500
3 Beds
2 Baths
2,256 SqFt
Status Active Under Contract
MLS # 6783474
Property Type Single Family Residence
Price Type --
This beautifully updated 3-bedroom, 2-bathroom home is nestled in the heart of the prestigious Legend Trail community. Located right on the golf course, it offers breathtaking views and a serene desert setting. Spacious Interior: 2256 sq. ft. of thoughtfully designed living space. Recent Renovations: New flooring throughout, remodeled kitchen with new granite counter tops and newer appliances. Upgraded master bathroom with tub and shower and tile flooring New Roof: Recently replaced in 2023, offering peace of mind and longevity. Enjoy beautiful views and Arizona sunsets from the comfort of your home. Backyard offers relaxing sitting area with firepit and lush landscaping. Resort-style community pool and spa, fully equipped workout facility, Tennis and pickleball courts. Endless hiking and biking trails through the beautiful Sonoran Desert.

252 S Forest Service 3341 -- Parks, AZ 86018

$995,000
3 Beds
2 Baths
1,700 SqFt
Status Active
MLS # 6754105
Property Type Single Family Residence
Price Type --
NEED 2 HOUSES? NO PROBLEM. START HERE! Nearly 10 heavily wooded acres. Borders miles of forest service land. Fully fenced property with 2 gated entries. 1,500 S/F SHOP/GARAGE with a metal roof perfect for large solar array & future battery wall. Newly built well house services seasonal well and has massive 7500-gallon water storage capacity. 2 SEPTICS ALREADY ONSITE, along with 2 APS meters. 2 RV SITES - live in your RV while you build or remodel! The SINGLE LEVEL HOME needs some updates, but is comfortable to live in or rent out as is. Why struggle to find a contractor and deal with the costs and headaches of a new build? Remodel here and create instant equity. Contractor has been identified and has provided budget for remodel. Owners will work with buyers on terms

35564 N Sunset Trail San Tan Valley, AZ 85140

$995,000
2 Beds
2.5 Baths
2,429 SqFt
Status Active
MLS # 6784193
Property Type Single Family Residence
Price Type --
Experience luxury living in this beautifully upgraded 2-bedroom, 2.5-bath home with over $280,000 in premium enhancements & owned solar. The gourmet kitchen features upgraded appliances, soft-close cabinets with pullout shelves, LED lighting above & below cabinetry, and a walk in pantry. The primary suite boasts the community's highest-tier bathroom upgrade and ceiling speakers. Outdoors, the expanded patio area offers a custom fire pit, BBQ, fountain, pergolas with roller screens, & a commercial-grade misting system for ideal relaxation. This home is near the Algarve, where you'll find Santorini's Studio for art classes, an adult-only pool, bocce ball courts and pickleball courts. Buyer to verify all material facts & measurements. The home's energy-efficient features are equally impressive. Owned solar with a battery backup ensures power reliability, including during outages, with select outlets, the refrigerator, and the garage door on the backup system. Additional touches, such as a steel bird screen around the solar panels. The garage has also been extended by four feet to provide extra storage space, has epoxy flooring, and overhead storage racks. A tankless water heater, soft water system, and reverse osmosis system ensure convenience and quality throughout daily routines. The den features a cozy double-sided fireplace shared with the lounge, creating a warm, inviting atmosphere in both spaces. An expanded coat closet provides additional storage for your convenience. The smart room/laundry area is equipped with both electric and gas dryer hookups, offering flexibility to suit your needs. The backyard is fully fenced and includes a small dog screen along the fence. Thoughtfully landscaped, the yard boasts fruit-bearing orange, grapefruit, mandarin, lemon, and lime trees, adding a vibrant, natural touch to your private oasis. Rain gutters are also installed, enhancing the property's functionality and care. The Encanterra Community offers a wealth of amenities to enhance your lifestyle. The main clubhouse is a hub of activity with tennis courts, a playground, a spa, an indoor pool, an outdoor lap pool, and an all-ages pool, restaurants, plus a beautiful golf course with serene lakes. With luxury upgrades, sustainable features, and access to world-class amenities, this home delivers an unmatched lifestyle in the highly sought-after Encanterra Community.

20579 S 190th Place Queen Creek, AZ 85142

$995,000
5 Beds
3.5 Baths
4,517 SqFt
Status Active
MLS # 6712474
Property Type Single Family Residence
Price Type --
Gorgeous Taylor Morrison Acadia floorplan- Like new without the wait! With over 4500 sq ft this popular model has 5 bedrooms plus a den and 3 1/2 baths. Builder upgrades include: super shower in primary bedroom, 2nd upstairs laundry room, 19'x25' media room with barn door option, and central vacuum. Located in the hightly sought after Legado master planned community featuring a lake, walking paths, playgrounds, a lighted basketball court, corn hole boards, splash pad, and more! You won't even need to leave the neighborhood to go out and enjoy a beautiful Arizona day, but rest assured there is also plenty to do nearby!

5619 W Johnny Mullins Drive Prescott, AZ 86305

$995,000
3 Beds
2 Baths
1,893 SqFt
Status Active
MLS # 6752399
Property Type Single Family Residence
Price Type --
$230k+ in updates. Move in ready! All the hard work has been done and it ready to be enjoyed. Nestled on the 3rd green, the lush vegetation provides a serene backdrop. Upgrades enhance both beauty and function with new exterior & interior paint, updated flooring throughout, updated bathrooms, fireplace, carpet, window coverings, chandeliers, RH light fixtures, fans, custom iron screen door, Wi-Fi openers, epoxy garage floor, and custom Big Chill appliances. Primary bedroom tv and living room tv with sonos sound bar stays with the home. Step out to the expansive outdoor living area & soak in the golf course & Granite Mountain view. This Ranch Cottage offers an unmatched blend of elegance, functionality, and modern sophistication.

8744 E Arlington Road Scottsdale, AZ 85250

$995,000
3 Beds
2.5 Baths
2,200 SqFt
Status Active
MLS # 6756727
Property Type Single Family Residence
Price Type --
This property offers a great option for either a primary residence or a short-term rental and is located in the desirable 85250 zip code of Scottsdale. With no HOA and fully furnished, this home is move-in ready and has undergone a complete remodel. Key updates include a modern architectural floor plan, upgraded sewer and plumbing systems, enhanced electrical wiring, a new HVAC system, a tankless water heater, and a water softener, along with updated appliances. The open-concept design features an inviting front foyer leading into a spacious kitchen that boasts a large center island, a gas range, and a wine refrigerator. The interior is complemented by maple wood flooring, and there is a generously sized bedroom adjacent to the living area, which includes large glass French doors. A convenient half bath adds functionality to the space, making it suitable for various uses such as a man cave, office, or play area. The backyard is equipped with a built-in barbecue, a fire pit, and a heated swimming pool, offering a great outdoor space for relaxation and entertainment. Additionally, the presence of a television enhances the outdoor experience for your enjoyment. Overall, this home combines modern amenities with a functional layout, making it an attractive option for potential buyers or renters.

6434 E Military Road Unit 110 Cave Creek, AZ 85331

$995,000
2 Beds
2.5 Baths
2,450 SqFt
Status Active
MLS # 6759166
Property Type Townhouse
Price Type --
Fully furnished turnkey luxury townhome in the heart of Cave Creek! This beautifully appointed home offers private gated courtyard entry, lovely fenced backyard with large covered patios & balconies. Located at the base of Black Mtn in the heart of Cave Creek. Every detail has been thought of here, granite counters , custom alder cabinets, travertine tops in the bathrooms, brick lay tile floor on main level, upgraded plush carpet in the bedrooms/loft & 20 ft high ceilings at the living room/loft area. Master #1 has a corner gas fireplace, large bath w/soaking tub & 2+ shower, dual walk-in closets and a private balcony. Master II is very spacious with large walk in closet, bath w/shower, and balcony with mtn views! Large loft accommodates office space/sleeping area & coffee bar. More...

11082 W Martin Road Casa Grande, AZ 85194

$995,000
4 Beds
4 Baths
3,239 SqFt
Status Active
MLS # 6763670
Property Type Single Family Residence
Price Type --
Beautifully remodeled home on 2.25 acres of horse property. Enjoy the welcoming backyard complete with salt water pool, spacious patio and outdoor kitchen area. Store your toys in the expansive 4 car garage with shop or the enormous, insulated RV garage. This home has it all with a total of 4 bedrooms, 2 primary bedrooms with ensuite bathrooms and custom walk-in closets. The kitchen features Electrolux double ovens and an island range, Bosch dishwasher, under counter refrigerator and new LG touch refrigerator. So many upgrades, you will surely be impressed!

591 E Park Avenue Gilbert, AZ 85234

$995,000
4 Beds
3 Baths
2,973 SqFt
Status Active
MLS # 6775950
Property Type Single Family Residence
Price Type --
Welcome to a unique find in the heart of Gilbert! This beautiful 4 bd, 2.5 ba home sits on an expansive lot with plenty of outdoor space. Perfect for families, pets, and even RV parking. Inside you'll find an open floor plan with modern upgrades, including a gourmet kitchen with granite countertops and stainless-steel appliances. The large living areas are filled with natural light. The master suite is a private sanctuary featuring a walk-in closet and a spa-like bathroom. Located in a top-rated school district, the neighborhood is known for its friendly atmosphere, tree-lined streets, and a true sense of community. Minutes away from fantastic shopping, dining, and recreational parks. Homes in this neighborhood are a rare find, book your tour today!

2008 E Mead Place Chandler, AZ 85249

$995,000
5 Beds
4.5 Baths
4,468 SqFt
Status Active
MLS # 6772639
Property Type Single Family Residence
Price Type --
Spectacular 5 bedroom, semi-custom property with basement on a peaceful cul-de-sac at Countryside Estates! This beauty showcases a Tuscan-style curb appeal with a 3 car garage, pavers galore, and a gated courtyard. Access the home through the custom glass & iron door to discover a classy split floor plan boasting tall ceilings, plantation shutters, tile flooring, and recessed lighting. The ample living room features an accent wall & pre-wired surround sound. The formal dining room has a tray ceiling for lavish entertainment and plenty of open space for all your gatherings . The gourmet kitchen is equipped with a plethora of wood cabinets, travertine tile backsplash, abundant granite counters, an oversized island with breakfast bar, wine/beverage fridge and stainless steel appliances. Owner's suite has French doors to the backyard, a walk-in closet, and a lavish ensuite with two granite vanities, a tub, and a snail shower w/glass block accent. In the basement, discover a vast bonus/family room with a wet bar perfect for gatherings & entertaining. Additionally, you'll find 2 bedrooms (one setup as a workout room) & a bathroom. The resort-like backyard offers multiple patios with flagstone flooring, built-in grill, and a fantastic pool with spa & basketball hoop. A removal pool fence and turf area. The single car garage has a split heating & cooling unit that is perfect for a work shop or hobbyist. What more can you ask for? Don't miss this one-of-a-kind abode! Act now!

221 S Silktassel Road Show Low, AZ 85901

$995,000
3 Beds
2 Baths
2,950 SqFt
Status Active
MLS # 6772874
Property Type Single Family Residence
Price Type --
Beautiful 3 bed 2 bath cabin with great curb appeal located in the upscale Torreon community in Show Low. Upon arrival you will be met by the charming bridge entrance. The home has a spectacular great room with vaulted ceilings, grand stone fireplace, and large windows with automatic shades for natural light and golf course views. Kitchen boasts an open feel with stained wood cabinets topped with granite countertops. Generously sized bedrooms and ensuite primary bedroom. Upstairs loft/game room for additional entertaining and walk-out patio. Walk through this inviting cabin and experience the tranquility in the stunning forest community of Rendezvous Torreon.

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