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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5408 Corda Lane Pinedale, AZ 85934

$995,000
5 Beds
3.5 Baths
3,931 SqFt
Status Active
MLS # 6773336
Property Type Single Family Residence
Price Type --
A beautiful rural oasis in the family-friendly Pinedale area, with a balance of pine trees, hilltop, and a flat meadow that gives you an unobstructed view that is hard to beat! The property borders national forest service on one side, with an abundance of wildlife. Perfect for self-reliant living that can be on or off-grid, the home includes an engineered solar generating system designed to keep utility cost low, and has a private well, water storage, a 120 gallon water heater and more. This home with 6.81 acres can be purchased separately or together with a cozy guest log cabin on an additional adjacent 1.27 acres which borders national forest on the north east side of the property. An''Owner's Home Manual'' is available to inspect inside the house, as well as an updated appraisal & home inspection. In wall circulating fans help to regulate temperatures in living areas, food storage, and the sunroom/greenhouse. The property is listed 35K below appraised below. The owner has just finished an intense renovation of above 100K. A must-see property that will have you enjoying gorgeous sunset from your private deck!

7049 N Via De Paesia -- Scottsdale, AZ 85258

$995,000
3 Beds
2 Baths
1,890 SqFt
Status Active
MLS # 6784249
Property Type Single Family Residence
Price Type --
THIS IS IT!!! Beautiful 3 bedroom home that is upgraded and ready for new owners in the coveted McCormick Ranch! Travertine flooring, 5 inch baseboards, two-tone paint, upgraded, new carpeting in bedrooms 2024, Cabinets in laundry room. Plantation shutters throughout, verticals on sliding doors. Fabulous kitchen with alder cabinetry, granite counters, recessed and pendant lighting with stainless steel appliances, gas stove. Bathrooms have granite counters, travertine surrounds and new light fixtures. ***16 Seer AC unit installed in 2024*** Roof underlayment replaced 2016. Windows/Slider new 2021. Extended driveway, epoxy floors in garage. ***New electric panel 2024*** Water heater 2023. Licensed contractor installed gas line to fireplace, stove and added exterior stub. GREAT HOME!!!

8325 E Crestwood Way Scottsdale, AZ 85250

$995,000
4 Beds
3 Baths
2,421 SqFt
Status Active
MLS # 6777054
Property Type Single Family Residence
Price Type --
Once in a while does a truly magnificent, fully remodeled modern home such as this gem come available. You will love the kitchen with glass front cabinets, stainless steel appliances, soft close drawers, large island with breakfast bar & wine refrigerator all overlooking the open family room. This home boast a beautiful master suite with spacious master bath with Japanese soaking tub, second master bedroom, bonus room, carport with automatic gate & a backyard with a pool, putting green and relaxing sit down area to enjoy the beautiful Arizona sunsets in the front and back yard. Minutes from Old Town Scottsdale, freeway access, and Sky Harbor Airport! Make this gem your home today!!

3301 E Montecito Avenue Phoenix, AZ 85018

$995,000
4 Beds
2 Baths
1,875 SqFt
Status Active
MLS # 6779435
Property Type Single Family Residence
Price Type --
This charming 4-bedroom, 2-bathroom property offers the perfect blend of comfort, style, and luxury. Step inside to find spacious living areas bathed in natural light, an updated kitchen with modern finishes, and a sparkling pool perfect for entertaining or unwinding after a long day. Located in the desirable Arcadia Lite neighborhood, this home puts you close to the area's best dining, shopping, and entertainment options.

5350 E Deer Valley Drive Unit 1282 Phoenix, AZ 85054

$995,000
3 Beds
4 Baths
2,446 SqFt
Status Active
MLS # 6780600
Property Type Townhouse
Price Type --
Just in time for winter! This charming three-bedroom casita, featuring en suite bathrooms, a loft, an office space, and a private attached garage, is now ready for new owners to cherish! Enjoy stunning back views of the Wildfire golf course at the J.W. Marriott, along with all Toscana amenities, and it's completely turn-key. Just pack your toothbrush, some bedding, and towels, and you can move right in! This unit will be sold furnished* and is impeccably clean! With a gourmet kitchen, two primary suites—one upstairs and one downstairs—this layout ensures privacy for both the owner and guests, plus an extra bedroom as well! Enjoy golf views on the upstairs balcony or private patio. Tons of amenities for resort style living with pools, workout room, and business center. The Toscana Casita is very unique for this community and units do not hit the market often. #1282 has been very lightly lived in since 2018, and only had one owner, purchased as newly constructed. The interior is impeccable, always cared for! When appraised in 2018, this unit has a comparable list, (apples to apples), from Kierland Golf Course townhomes, and Grayhawk Golf Course. There are very few condo/townhomes in the area with golf course views, private garage with direct entry, with full use of amazing amenities, and an amazing walkability score. Unit #1278 recently sold in July of 2024, but this was a family exchange, and no valuation model was applied. The Casitas put an end to apartment type living!

4043 E Woodstock Road Cave Creek, AZ 85331

$995,000 - 5Br/5Ba -  for Sale in Dove Valley Ranch, Cave Creek
New
$995,000
5 Beds
4.5 Baths
4,105 SqFt
Status Active
MLS # 6788966
Property Type Single Family Residence
Price Type --
Stunning entertainer's dream home on a premium view lot backing to natural area open space in a gated community! The floor plan is ideal, with a bedroom on the bottom floor. There are gorgeous vinyl plank floors, surround sound, and many windows providing natural light. The heart of the home is the gourmet kitchen, with stainless appliances and a middle island that flows effortlessly into the family room. The open layout is perfect for entertaining, with a door leading to the backyard sanctuary. Combining the pool, fire pit, BBQ and scenic views creates a tranquil retreat where relaxation and outdoor living come together harmoniously. The primary suite has a soaking tub, shower, two walk-in closets, a view deck & bonus room. Conveniently located to shopping, dining and top-rated schools!

6329 E Evening Glow Drive Scottsdale, AZ 85266

$995,000
2 Beds
2.5 Baths
2,523 SqFt
Status Active
MLS # 6783160
Property Type Single Family Residence
Price Type --
Nimbus model (Voted best of American Living Award) loved for its eat in kitchen with large island that's WIDE OPEN to the family room,13 foot soaring coffered ceilings,clerestory windows,8 foot interior doors and LARGE 3 CAR GARAGE.This lovingly maintained home has a perfectly private bright south patio and space for either a casita or a courtyard in the front yard with mountain views! The remodeled kitchen is beautifully finished with Carob-colored raised panel cabinets, level 5 slab granite countertops, ample cabinet space, and stainless steel appliances, including a KitchenAid 5-burner gas cooktop. Tuscan tile flooring and travertine stone counters in the bathrooms add to the home's refined details, along with custom built-ins and double-door entries to both the den and primary bedroom.Outdoor living is a delight with a private winter-bright patio featuring stuccoed fences, a stately Saguaro, lush vegetation, hand-laid pavers, and a built-in natural gas BBQ. The garage offers a speckled epoxy floor, abundant storage, and convenient backyard access. Welcome to Terravita - Where Lifestyle is the True Luxury Dear Prospective Homebuyer, If you're considering making Terravita your home, know that you're not just buying a property; you're embracing a lifestyle that's rich, engaging, and brimming with opportunities. Terravita stands as a testament to a community that values experiences, relationships, and personal growth over mere bricks and mortar. Here, the house you buy is simply a gateway to the life you desire. A visit to Terravita's clubhouse and a brief tour of the amenities is essential - it's not just recommended; it's crucial. It is literally what you are buying. If you are just looking for a house, this is likely not the place for you. Dialing 480-488- 3456 can set you on a path to discovering a world where every day is a new adventure. This initial tour is more than just a walkthrough; it's an eye-opener to the vibrant, active lifestyle that awaits you. Many have said that understanding the depth and breadth of Terravita's amenities was a pivotal moment in their decision to join our community. We invite you to take the first step towards discovering if Terravita is the right fit for you. It's not just about finding a home; it's about finding a place where you can live your life to the fullest. The lifestyle you've dreamed of is here, waiting for you to embrace it. Remember, exploring Terravita starts with a tour of our clubhouse and amenities. Make that choice today and open the door to a world where life is rich, full, and wonderfully yours. Terravita is a guard gated 823 acre planned community which consists of many amenities including an 18 hole championship golf course, a 39,000 square foot newly remodeled clubhouse facility with 2 dining areas, a heated Olympic pool with easy beach front entrance and hot tub, 6 tennis courts and a full-time tennis pro, a 13,000 square foot health and fitness center, community-wide 6 mile long walking and jogging trails, and extensive event calendar with fun-filled events for the dozens of social organizations. Terravita Golf and Country Club has been voted Best Master Planned Community and Best Private Golf Club numerous times by Ranking Arizona. Terravita was created by Del Webb and was their first non-age restricted community. Terravita golf course was created by PGA Hall of Fame member Billy Casper and designer Greg Nash. Terravita golf amenities include a pro shop, a large driving range, and four separate areas to practice chipping and putting.

1 Easy Street Unit 12 Carefree, AZ 85377

$995,000
3 Beds
3.5 Baths
2,283 SqFt
Status Active
MLS # 6782060
Property Type Townhouse
Price Type --
Contemporary, luxury townhome in the heart of idyllic Carefree. Conveniently walkable to galleries, shops, restaurants, pubs and the town center. These were designed as Lock-n-Go with minimal exterior maintenance and maximum lifestyle. This unit is the largest in the community with 2283 SF, 3 BR, 3.5 BA and a Primary suite on each level. This is also the largest lot in The View Carefree with extra space in front and the private back. Highlights include multiple balconies, contemporary metal/cable stair rails, gourmet island kitchen, multiple rain shower heads, laundry areas on each level and efficient gas, tankless water heater. If you want to live in the center of downtown Carefree, there is no better choice, hurry.

4058 E Thunderheart Court Gilbert, AZ 85297

$995,000
5 Beds
4.5 Baths
4,593 SqFt
Status Active
MLS # 6699975
Property Type Single Family Residence
Price Type --
Tucked into a quiet Cul de Sac without any houses across the street and no 2 story homes looking in over the back yard fence, this amazing Power Ranch family home offers a privacy and serenity not found anywhere else in the neighborhood. With a recently painted and remodeled interior, this 4,593 square foot home boasts a one-of-a- kind layout that offers 5 bedrooms (3 of which have en-suite baths) 4.5 bathrooms total and one of the largest backyard pools in the community. The homeowners have recently added a modern top-of-the-line sliding glass door to the backyard that has a lifetime warranty. The recently remodeled backyard has areas for swimming, laying out in the sun, relaxing around a fire table with friends and a beautiful green turf throughout that is easy to relax on and care for. There is even room for a trampoline if your family likes to jump. The gourmet kitchen will delight the home chef with an abundance of cabinetry, high-end granite countertops, tiled backsplash, a gas cooktop with wall ovens, and a walk-in pantry. The main floor laundry room offers an abundance of upper/lower cabinetry with sink, and the 4 car garage is equipped with as much cabinet storage space as you could ever need and 2 additional covered spots provide ample parking for friends and family. This is the perfect home for anyone who likes to be near top level schools, with shopping in all directions, quick access to the highway but still wants the feel of a quiet oasis in one of the highest ranking neighborhoods for family satisfaction in the country. Connected to the massive Power Ranch green belts and walkways, you are never far from a park, one of two community pools, a walk around the lake or even a rock climbing gym. But, with a giant backyard pool that sports LED multi-colored lights, a grotto, water fall, slide and spa, all remotely controlled from your smart phone, there really is no reason to ever leave.

5946 E Sienna Bouquet Place Cave Creek, AZ 85331

$995,000
3 Beds
2 Baths
2,237 SqFt
Status Active Under Contract
MLS # 6756370
Property Type Single Family Residence
Price Type --
GATED LONE MOUNTAIN ESTATES! BIG BLACK MOUNTAIN VIEWS!GORGEOUS & IMMACULATE HOME WITH CONTEMPORARY FLARE~ REMODELED TO PERECTION! !Great room floorplan;ALL NEW FLOORING!Sealed,stained & waxed concrete, new canned lighting throughout;ceiling fans Gourmet kitchen w/BLUESTAR oven;cooktop;white glass backsplash,2nd bosch oven/micro;fridge/dishwasher. Extended island w/ italian lighting; stunning quartzite countertops. Custom cabinetry throughout w/dovetail soft close drawers;undermount lighting.Beautiful BATHROOMS !CUSTOM CABINETS,LIGHTING,MIRRORS, TILE & SHOWER DOOR. Kohler fixtures;quartz counters. Primary split/Huge walkin closet .Plantation shutters throughout!LG Windowsw/Views everywhere!Back yard~Firepit; Putting green; jacuzzi spa (never used) N.lot line Borders NAOS .LG 2cG w/builtins

8101 E Via Campo -- Scottsdale, AZ 85258

$995,000
3 Beds
2 Baths
2,208 SqFt
Status Active Under Contract
MLS # 6779447
Property Type Single Family Residence
Price Type --
This McCormick Ranch address represents more than just a residence; there's a lifestyle waiting to be embraced in this elegant 3 bedroom, 2 bath single level home perfectly designed for easy living and entertaining. The bright and open greatroom features a vaulted ceiling, creating an inviting atmosphere that flows seamlessly into the remodeled kitchen, equipped with stainless steel appliances and stylish finishes. Oversized primary bedroom exudes charm with brick fireplace in the sitting area while the ensuite is highlighted with a sunken tub, double sinks and a newly remodeled shower. Step outside to your private oasis—a south-facing backyard complete with a heated pool and spa, mature trees and grass, perfect for year-round enjoyment. The expansive outdoor space is ideal for gatherings or tranquil evenings under the stars. Peace of mind improvements include: paint (int/ext 2024), windows (2022), HVAC (2021), pool pump & heater (2020), front yard landscaping and new electrical panel. Located in arguably central Scottsdale's most popular neighborhood, you'll find yourself just steps from the greenbelt, popular restaurants, parks and lakes. This is where the good life is LIVED!

6173 N 29th Place Phoenix, AZ 85016

$995,000
2 Beds
2 Baths
1,513 SqFt
Status Active Under Contract
MLS # 6781278
Property Type Single Family Residence
Price Type --
Quaint, cute, private, and with amazing views of Camelback Mountain, this home represents the best of what Biltmore Villas II has to offer! This home offers extraordinary indoor/outdoor living and features a covered patio with privacy shades and a glistening pool, creating an inviting space for outdoor entertaining and the perfect place to watch the sunset against Camelback Mountain. Inside, the home features a comfortable split floor plan, including two spacious bedrooms and two bathrooms, ensuring both privacy and convenience. The community is top-notch and secure, featuring both private, gated access and roving security. Located in one of Phoenix's most desirable areas, close to world-class golf, shopping, dining and the airport, don't miss your opportunity to call this house ''home''!

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