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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38724 N 10th Street Phoenix, AZ 85086

$995,000
4 Beds
3.5 Baths
3,184 SqFt
Status Active Under Contract
MLS # 6720982
Property Type Single Family Residence
Price Type --
Stunning & tranquil family home nestled on a 1+ acre quiet cul-de-sac lot, NO HOA, an RV gate & an open concept floor plan! 4 total bedrooms PLUS A DEN. 3.5 baths, including 2 master baths. Crown molded 12-foot ceilings, plantation shutters, updated fixtures throughout. The kitchen features maple crown molded cabinets, granite countertops, an island with a veggie sink, a butler's pantry, soft water & filtration, stainless steel GE monogram dishwashers (2) & an oversized refrigerator! AC's, pool equipment, water heater, soft water AND new windows all installed within the last 18 months!! Relax or entertain in the fully custom resort style backyard with a ramada, built-in BBQ, fire pit, & a fenced 6'7'' deep pool with a Baja step! BRAND NEW ARTIFICIAL TURF JUST INSTALLED!! GOT TOYS??? Extended depth 4-car garage has epoxy floors, overhead storage, a built-in workbench, 30/50 amp RV outlet & more!!

3520 W Lead Rope -- Flagstaff, AZ 86005

$995,000
3 Beds
4 Baths
2,601 SqFt
Status Active Under Contract
MLS # 6748002
Property Type Single Family Residence
Price Type --
Built by Flagstaff's Premier Builder, this perfectly crafted mountain home is spectacular. 2601 SQFT, 3 beds/ 3.5 baths are just the start. Additional comforts incl. new AC in 2023,dual primary suites, a 3rd bedroom jr suite & an upstairs living room w/ computer alcove. This bright home offers spacious areas that are perfect to entertain with a large great room, gourmet granite kitchen, and a generous dining room. Specialty touches include richly crafted knotty alder cabinetry, custom tile showers & porcelain wood plank flooring. Upgraded features consist of efficient gas heat, insulation and soundproofing in all walls/ceilings. Social memberships allow members to play golf twice a month! If you love Pine Trees, views of the iconic San Francisco Peaks, and amenities, this home is for you! Additional bonus!.... Lot next door is vacant and has been for many years. Great shady area! Some listing photos are from when home was vacant.

7553 E Woodshire Cove Scottsdale, AZ 85258

$995,000
3 Beds
2 Baths
2,534 SqFt
Status Active Under Contract
MLS # 6768714
Property Type Single Family Residence
Price Type --
Situated in Carriage Square at Gainey Village, this charming single-level 3-bedroom, 2.5-bathroom home presents a fantastic opportunity to create your ideal living space. Situated in a desirable location, this property features a spacious layout and a wonderful outdoor area with an extremely private backyard and inviting pool. Embrace the potential of making this home your own while enjoying the tranquility of your surroundings. Don't miss out on this exceptional opportunity!

10695 E San Salvador Drive Scottsdale, AZ 85258

$995,000
3 Beds
2 Baths
2,251 SqFt
Status Active Under Contract
MLS # 6784894
Property Type Single Family Residence
Price Type --
MOTIVATED SELLERS! BY APPT ONLY 11/22. FRI 1-3 PM & 11/23 SAT 12:30-2 PM REVIEWING ALL OFFERS 11/24 AT 5 PM Stunning remodeled home located in a cul-de-sac in coveted Scottsdale Ranch. The property features mature landscaping in the front yard, including a lemon tree and ivy, creating an inviting atmosphere. The open floor plan is bright and airy, offering 3 bedrooms, 2 bathrooms, and a large office. The spacious primary suite has direct access to the backyard. The fabulous open kitchen was remodeled just five years ago. Throughout the home, you'll find stylish neutral wood laminate flooring that complements a modern aesthetic The 3-car garage has been updated with new epoxy flooring. The private backyard oasis has been beautifully redone with artificial turf and oleanders for added privacy. The pool and spa feature brand new PebbleTec finishes (installed 2 years ago) and new tile accents. Additionally, the pool equipment is newer as well.

2412 W Hazelhurst Court Anthem, AZ 85086

$995,000 - 4Br/4Ba -  for Sale in Anthem Country Club Unit 12 Rolling Green Amd, Anthem
Open House
$995,000
4 Beds
3.5 Baths
3,246 SqFt
Status Active
MLS # 6773265
Property Type Single Family Residence
Price Type --
This Anthem Country Club beauty is located on Persimmon #16 fairway w/gorgeous views of the course & mountains. Inviting curb appeal w/ a private courtyard including a fireplace. BRAND NEW ROOF underlyament! 2020 A/Cs. Solid wood doors. Guest CASITA. Entertainer's floorplan w/dining & living room, both w/french doors to the courtyard. Dedicated office w/built-ins. Fresh kitchen, family room and butler's pantry paint. Quality built-in entertainment center. Charming primary bedroom with access to the back yard. Lovely bathroom. HIS & HER & vanities. Walk in closet. Enchanting back yard w/water feature, BBQ & VIEWS! Amenities are outstanding. Come & enjoy ''2 of everything''. 2 golf courses, tennis facilities, club houses, restaurants, pools, fitness centers, just 2-2 fun. Anthem also has Pickle ball courts and bocce ball.

5725 E Evans Drive Scottsdale, AZ 85254

$995,000 - 4Br/3Ba -  for Sale in 56th Street & Acoma, Scottsdale
Open House
$995,000
4 Beds
2.5 Baths
2,324 SqFt
Status Active
MLS # 6754204
Property Type Single Family Residence
Price Type --
Move-In Ready. 4BR 2.5BA w/ 2.5 Car Garage in the ''Magic Zip Code'' of 85254. Desirable location close to Kierland Shopping, Restaurants, schools, parks and Entertainment. NO HOA. This home features open floorplan from Kitchen to Family Room, Sparkling Pool. Kitchen has Kitchen Craft Cabinets, with custom finishes inside .Stainless Appliances, Viking Beverage Cooler, Granite Counter Tops. Double French Doors lead to large patio with Sparkling Pool. The oversized back yard is ready for your landscape design. Luxurious Main BATH dual sinks and stand-alone tub. All baths remodeled. New Carpet & Tile. New Paint Inside & Out. New Garage Epoxy Floor. PLEASE REMOVE SHOES, or WEAR BOOTIES up stairs. New ACs in 2019 & 2020. New Water heater 2020. RF pet collar controlled PlexiDor Pet door.

8677 E Via Del Valle -- Scottsdale, AZ 85258

$994,999
4 Beds
3 Baths
2,500 SqFt
Status Active
MLS # 6751875
Property Type Single Family Residence
Price Type --
PRICE TO SELL!!! Experience unparalleled luxury in this stunning, remodeled home in McCormick Ranch! Be the envy of your friends and neighbors with a residence that exudes charm and sophistication. The bright, open floor plan features abundant natural light, soaring ceilings, and a breathtaking fireplace. The gourmet kitchen offers ample counter space, plenty of cabinets, and new stainless steel appliances. This split-level design includes two spacious bedrooms and a full bath downstairs, while the oversized primary and secondary bedrooms upstairs boast private balconies and exquisite luxury bathrooms. Enjoy all that McCormick Ranch has to offer, including walking paths, a pool, spa, parks, dining, shopping, and entertainment

21701 S 222nd Court Queen Creek, AZ 85142

$994,990 - 4Br/4Ba -  for Sale in Charleston Estates, Queen Creek
New
$994,990
4 Beds
3.5 Baths
3,194 SqFt
Status Active
MLS # 6789223
Property Type Single Family Residence
Price Type --
Nestled in a quiet cul-de-sac, this stunning single-level home is a dream come true. Boasting 4 spacious bedrooms and 3.5 luxurious bathrooms, this property offers the perfect blend of comfort and elegance. The heart of the home features a modern, open-concept layout with high-end finishes, ideal for entertaining or relaxing with family. Step outside to your personal oasisa sparkling pool surrounded by lush landscaping, perfect for sunny days and evening gatherings. The giant backyard offers endless possibilities, from hosting barbecues to creating a private retreat for play or gardening. The oversized 3-car garage provides ample space for vehicles, storage, or even a workshop, ensuring convenience and functionality. Located in a family-friendly cul-de-sac, this property

2088 E Hackberry Place Chandler, AZ 85286

$994,900
5 Beds
3.5 Baths
3,525 SqFt
Status Active Under Contract
MLS # 6768235
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the heart of Chandler! This 5-bedroom, 3.5-bathroom executive residence spans over 3,500 sq. ft. of beautifully designed living space, perfect for both luxury living and entertaining. Step inside to find newer tile, fresh paint, updated baseboards, and modern light fixtures that create a bright atmosphere throughout the home. The expansive floor plan includes multiple exterior courtyards, allowing natural light to flood the interior and offering seamless indoor-outdoor living. Relax in the courtyard pool or gather around the sunken outdoor fireplace—perfect for cozy evenings or hosting unforgettable get-togethers. Whether you're entertaining guests or enjoying a quiet retreat, this home offers the perfect balance of comfort, style, and outdoor elegance.

14219 N 69th Drive Peoria, AZ 85381

$994,900
5 Beds
3 Baths
3,808 SqFt
Status Active Under Contract
MLS # 6677609
Property Type Single Family Residence
Price Type --
Just Reduced $5,000 on this 5br-3 full bath home on 1.1 acre with flood irrigation, horse privileges, and no HOA.Tucked away in the quiet established community of Longhorn Ranch. Ample space for all of your toys with 6 car garage, gated RV parking and large circular drive. autiful custom front door adorns an open and spacious single story, 3,808 SF, 5 bedroom 3 bath home. An abundance of natural light, plantation shutters, solid maple hardwood floors and granite throughout. Huge backyard with diving pool. basketball/sport court, mature citrus trees and extended covered patio. Perfect for entertaining. Plenty of shopping, restaurants and freeways are just minutes away from this beautiful Peoria home The sizeable primary bedroom is complete with direct backyard access, a romantic fireplace, and a lavish ensuite bathroom with dual sinks, a jetted tub, a raindrop shower, his/hers closet. Fall in love with the enchanting backyard, an outdoor paradise featuring a covered patio, a basketball court, an expansive lawn, and a refreshing pool with a diving board for cooling down on hot summer days. Make this gem yours today.. How about a 4.99 % interest 1st year loan with Brandon Hansen with Cherry Creek Mortgage. (St. George Utah)

18993 E Alfalfa Drive Queen Creek, AZ 85142

$994,900
5 Beds
3.5 Baths
4,517 SqFt
Status Active Under Contract
MLS # 6713019
Property Type Single Family Residence
Price Type --
The seller is offering a concession of 3% with a full-price offer. The buyer may apply this concession toward buying down their interest rate or covering closing costs. No need to wait for a new build this home is gorgeous and practically brand new! Introducing the Taylor Morrison Acadia floor plan, featuring 5 bedrooms, 3.5 baths, and a den. With over $100,000 in upgrades, including a stunning sparkling pool, with upgraded cartridge filter and variable speed pump, this home is truly exceptional. The large backyard features artificial turf, a covered patio, and a Ramada with a TV. A multi-slide door connects the spacious great room to the beautiful outdoor space, perfect for seamless indoor-outdoor living. The main level includes a den and the primary suite. The luxurious primary bedroom has amazing zebra window coverings, bathroom features modern flooring, separate double sinks, a soaking tub, separate walk-in closets, and a private toilet. The kitchen is a Chef's dream with double ovens, ample quartz counter space, an upgraded built-in gas stove, a stainless steel hood, a large pantry, and beautiful white shaker cabinets. Ceramic wood-look plank tile is strategically placed throughout the home. Additionally, most of the windows feature custom shutters, adding a touch of sophistication and privacy. Strategically placed sunscreens on the upper back windows, optimize energy efficiency by harnessing sunlight while maintaining a cool and comfortable interior. Upstairs, you'll find a large loft, 4 additional spacious bedrooms with walk-in closets, and 2 bathrooms, including a convenient Jack and Jill layout. Numerous niches and media centers are scattered throughout the home, offering functional and stylish spaces. Words can't capture the full essence of this home you need to see it for yourself to truly appreciate its beauty and elegance.

7567 W Gelding Drive Peoria, AZ 85381

$994,864 - 4Br/3Ba -  for Sale in Bella Pasa, Peoria
Open House
$994,864
4 Beds
3 Baths
2,650 SqFt
Status Active
MLS # 6772888
Property Type Single Family Residence
Price Type --
Bella Pasa, a gated enclave of 30 semi-custom homes in the perfect location! Our newest plan, a 4-bedroom, 2.5 bath single-level home with the Ultimate RV Garage- 44 ft long with a 16 ft ceiling, a 12x14 door with room for all the toys! Large north-facing lot, covered patio, multi-slide 'wall of windows' for indoor/outdoor living. LG appliances, 10 ft ceilings and 8 ft tall doors; upgraded electrical package and many upgrades, still time to select and personalize the interior finishes. Mid 2025 completion. $20,000 towards financing or additional upgrades.

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