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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4514 E Pebble Ridge Road Paradise Valley, AZ 85253

$3,600,000 - 5Br/5Ba -  for Sale in Pebble Ridge, Paradise Valley
Open House
$3,600,000
5 Beds
4.5 Baths
5,190 SqFt
Status Active
MLS # 6703586
Property Type Single Family Residence
Price Type --
Love Paradise Valley but want an updated home? Remodeled down to the studs in 2019/2020, this home offers updated kitchen, baths, flooring, and even new plumbing. Views of Camelback Mountain are visible the minute you enter, and from the entire rear of the property, inside and out. Warm wood floors welcome you into the home and a cozy bar is set in the corner of the living room with brass shelving supports, and both verage and dual zone wine coolers. Beamed Ceilings give a nod to the history of this contemporary style home, allowing any style of décor to blend. The first of three fireplaces graces the living room, which is open to the dining area. A very spacious family room is just steps away with it's own fireplace. With an opening to the Living/Dining areas, this floorplan is wonderful for entertaining. The Kitchen has a fresh feel with white cabinetry, Quartz countertops, with contrasting black and brass elements. A central island, induction Bosch rangetop, Sub Zero Refrigerator and Ovens, Microwave drawer and walk in Pantry provide an abundance of storage and top of the line appliances for culinary adventures. One of five bedrooms is just off the Living Room and would be a great space for an office. An adjacent bath with shower allows it be whatever works for you. The powder room sports a sophisticated feel with black millwork accented walls, black and white marble Hexagon floor tile, and brass accents. The powder room is also accessible from the rear open space of the property. The Primary Suite is a dream. Large enough to include a separate seating area, customized closets, and patio access, this room is secluded from the other bedrooms. The Primary Bath is well designed with marble and porcelain tile accents, a large walk-in shower, separate vanities and a soaking tub and fireplace. The remaining three bedrooms are spacious, the largest with an en-suite bath. Another bath is shared by the last two bedrooms. One of the family's favorite spots is the large media room. There is more than enough space for this to be a playroom and study area, in addition to the media area. The laundry is large, with extra cabinetry and a drop zone just off the 2 car garage. Outside, a raised patio keeps the views available, and overlooks the pool area. A large low maintenance turf lawn leads to the sports court. The batting cage in this area does not convey with the home.

10050 E Jopeda Lane Scottsdale, AZ 85255

$3,599,000 - 4Br/5Ba -  for Sale in Sonoran Highlands Phase 1, Scottsdale
Open House
$3,599,000
4 Beds
4.5 Baths
5,040 SqFt
Status Active
MLS # 6759938
Property Type Single Family Residence
Price Type --
Skyfire is a one-of-a-kind architectural gem nestled on a private 2.7 acre North/South cul-de-sac in Scottsdale's McDowell Mountain foothills, designed by renowned architect Vernon Swaback as his personal residence. All main systems have been upgraded, plus new systems including solar power, EV chargers, home automation, upgraded security system, and commercial-grade Wi-Fi network. Mid-century-inspired retreat offers clean lines, vaulted exposed wood ceilings, polished concrete floors, built-in cabinetry, cove and gallery lighting, blending organic design with modern luxury. Main home features three bed, four bath, Valley Room and spectacular fireplace, executive office with views, gourmet kitchen, media room, and entertainment loft. Private guest house offers a full kitchen and bath, fireplace and outdoor patio. This distinguished estate sits on an elevated lot with multiple outdoor entertainment spaces offering a tranquil infinity-edge pool and spa and expansive, unobstructed city and mountain views. Four car garage with motor court and extra storage is perfect for car enthusiast and entertainer. Minutes from world-class dining, hiking, golf, and Scottsdale Executive Airport, Skyfire is the ultimate sanctuary, combining sustainable luxury with architectural provenance.

24724 N 119th Place Scottsdale, AZ 85255

$3,595,000
4 Beds
4 Baths
3,800 SqFt
Status Active
MLS # 6685315
Property Type Single Family Residence
Price Type --
Spectacular 360* Mountain & Valley VIEWS! TRUE GOLFER'S PARADISE! Newly UPDATED CONTEMPORARY ESTATE in the Heart of Troon In North Scottsdale. Incredible location...Close to Shopping, Dining, fabulous hiking trails + so much more! Breathtaking yard with Putting green, large sparkling pool, lounging areas for sun / shade. Boasting Soaring Ceilings, this light & bright home with a ''sunny'' disposition has been thoughtfully designed sparing no expense.

5856 N 44th Street Phoenix, AZ 85018

$3,595,000
5 Beds
4.5 Baths
4,355 SqFt
Status Active
MLS # 6783567
Property Type Single Family Residence
Price Type --
Welcome to this stunning, fully renovated modern home that masterfully blends luxury with functionality. Boasting 4 spacious bedrooms, 4.5 baths, and a dedicated office, this home offers a perfect balance of comfort and style. The oversized master suite is a true retreat, featuring its own sitting area with views of the pool and backyard oasis. Step into the expansive great room, where 20-foot wide, 10-foot tall sliding glass doors open to breathtaking mountain views. A 16-foot tall fireplace anchors the room, creating an inviting focal point, while a sleek bar and wine wall add an extra touch of elegance. The design and finishes throughout are top-tier, showcasing high-end upgrades and modern details at every turn. The home is ideally situated just moments from Paradise Valley, Arcadia and Biltmore, offering the best of both privacy and convenience. The beautifully landscaped backyard is an entertainer's dream, complete with a sparkling pool, covered patio, built-in BBQ, and a putting green  perfect for relaxing or hosting gatherings. This extraordinary home offers the perfect combination of luxurious living, remarkable design, and an unbeatable location. Don't miss your chance to make it yours!

10540 E Larkspur Drive Scottsdale, AZ 85259

$3,595,000
5 Beds
4 Baths
5,279 SqFt
Status Active
MLS # 6782200
Property Type Single Family Residence
Price Type --
Situated atop an elevated lot, refined soft contemporary finishes abound in this Cactus Corridor masterpiece. Elements of the original 1980s open concept give this home a special character the moment you step foot through the twelve foot front doors into the welcoming foyer. Tasteful light wood floors take you to the massive living room with soaring ceilings, multiple exits to the backyard and fireplace. The double island kitchen is a chef's dream with built-in refrigerators and a coffee bar. The dining area is fit for the grandest of gatherings and is highlighted by additional seating areas and/or play areas beyond. Outside, the backyard has all of the perks, with a massive diving pool, sport court, kitchen, fire pit and ample room to entertain.

10040 E Happy Valley Road Unit 417 Scottsdale, AZ 85255

$3,595,000
4 Beds
5.5 Baths
6,370 SqFt
Status Active
MLS # 6711268
Property Type Single Family Residence
Price Type --
IMMEDIATE GOLF MEMBERSHIP AT CLOSE OF ESCROW! Situated on over 1.3 acres on a private cul-de-sac lot that offers the ultimate in privacy! Gated courtyard entry surrounded by the beautiful flora of the Sonoran Desert. Great room floorplan, private master suite, 3 guest bedrooms with ensuite baths, office, upstairs library/hobby room + bonus room with sweeping city light & mountain views. 24x24 travertine floors, wood beams, stacked stone & more. Gourmet kitchen with new top-of-the-line appliances, designed for the most discerning chef, features taj mahal quartzite countertops, knotty alder cabinets and adjacent breakfast room with fireplace. Private resort like backyard with beautiful mountain views as a backdrop, pebble tec pool and spa (see ''more'' remarks)... ... cooking station with new Napoleon gas grill, private side yard perfect for a garden or dog run. Exquisite landscape design by Trademark Landscaping. Desert Highlands, ranked as a top 100 club by Platinum Clubs of the World, offers world class amenities include a Jack Nicklaus championship golf course, 18-hole putting course, award winning clubhouse featuring Jack's Gastrupub and Jack's Backyard, Highlands Racquet Club offering grass and clay tennis courts + pickleball courts, state of the art fitness center & more. A $150,000 membership fee is due from buyer at close of escrow.

1502 E Treasure Cove Drive Gilbert, AZ 85234

$3,590,000
8 Beds
8 Baths
6,781 SqFt
Status Active
MLS # 6760150
Property Type Single Family Residence
Price Type --
Welcome to the rarest one-of-a-kind MASTERPIECE in prestigious GATED West Lake Estates! This unique estate is located on 2 waterfront lots with the most STUNNING expansive 240 degree views of the lake--and this exquisite ESTATE has recently been completed remodeled! Some unique features: over 6700 square feet of the finest luxury and superior quality finishes with 8 bedrooms and 8 baths, a large 3 car garage, an elevator, Gourmet Chef's Kitchen--both indoors and out--home theater, game room, 50 bottle wine room with humidor, impressive outdoor patio with a huge gazebo that has misting and heating, firepits, impressive 36,000 gallon salt water pool with swim up bar.. the views & outdoor living are like living in the finest 5 star resort! Click ''more'' for further Also included is the Val Vista Lakes Clubhouse which has: tennis courts, pickleball courts, raquetball courts, weight room, aerobic room, heated outdoor Olympic sized lap pool, beach pool with waterfalls, boat dock with boat and ballroom facility for private events! This is in a prime location--close to shopping, Dana Park which has some of the best restaurants and shopping in the Valley! It is a few minutes from the US-60 and Loop 202, close to Banner hospital and only about 25 minutes from the Sky Harbor Airport!

3500 E Lincoln Drive Unit 17 Phoenix, AZ 85018

$3,590,000 - 4Br/5Ba -  for Sale in Lincoln Hills, Phoenix
Open House
$3,590,000
4 Beds
5 Baths
5,345 SqFt
Status Active
MLS # 6780847
Property Type Single Family Residence
Price Type --
LOCATION, VIEWS, SECURITY AND RESORT STYLE COMMUNITY AMENITIES. Nestled on a hilltop and bordered by the Phoenix Mountain Preserve, this luxurious home in the prestigious 24 hr. guard gated community of Lincoln Hills, offers a great location (adjacent to the AZ Biltmore) and provides a serene retreat from the hustle and bustle of daily life. Active families and guests will love the hiking trails, community tennis/basketball court, heated pool and play park right at your doorstep. The open layout connects the living, dining, and the kitchen (newly remodeled by a designer in 2022) , creating a perfect space for entertaining or simply relaxing with loved ones.The spacious owner's suite, which is split from other bedrooms, boasts panoramic views of the city below and the surrounding mountain providing a peaceful sanctuary to unwind after a long day.Outside, there's a covered deck and a private, heated pool to enjoy the views and the dramatic sunsets. The surrounding mountains and 24 hr guard gate provide a sense of tranquility and seclusion for both first and second homeowners, making it the perfect place to escape from the stresses of everyday life. Key Features: City and Surrounding Mountain Views. New roof-2/24/23 w 5 yr warranty. Gorgeous New Kitchen with Deluxe Walk-In Pantry and Wet Bar. Walls of Windows and Skylights make the House Light and Bright. Every Room opens to Outdoor Space. Three (3) elegant Gas Fireplaces create Focal Points in the Owner's Suite, Living Room and Family Room and Warm and Welcoming Spaces. New Hot Water Heaters (2022) Sauna in Mstr Bath. Roof View Deck. Fabulous Community Amenities include a Heated Pool, Basketball/Tennis court, Play Park and Mountain Trails.

12651 S 71st Street Tempe, AZ 85287

$3,570,000
6 Beds
8 Baths
7,823 SqFt
Status Active
MLS # 6748395
Property Type Single Family Residence
Price Type --
WOW this DREAM compound offers LUXURIOUS living with spacious residences and TOP-NOTCH amenities and it's one of a kind!! The main house features impeccable finishes: a chef's kitchen, a butler's kitchen, large pantry, new flooring, vaulted ceilings with custom beam work and so much more. Over 174 photos uploaded for your review and enjoyment. Main house featured 4 large bedrooms each having private baths, formal and casual living spaces, and two private office spaces, it seems ideal for both family life and professional needs. The primary suite is particularly impressive, with dual vanities, toilet rooms, a multi-head shower, extensive built-in storage, and direct laundry access. The second residence adds a recreational dimension with indoor basketball and pickleball courts, along with along with a guesthouse or man cave that includes a full kitchen, TV room, and extra beds. The outdoor area is designed for entertaining, and with a large courtyard patio, 4 car garages, additional parking, and extensive air-conditioned storage, it offers both luxury and practicality. The private gated entrance and the absence of an HOA provide added privacy and freedom. This property seems like it truly needs to be seen in person to fully appreciate all it has to offer! The guest house has a full-size indoor basketball/pickleball court with a full kitchen, bathrooms, and two bedrooms adds a unique and practical feature to the property. The resort-style pool is BRAND NEW with a covered sitting area and built-in BBQ enhancing the luxurious, resort-like feel of the compound. This property truly offers a comprehensive package for luxury living and entertaining.

5036 N Ascent Drive Scottsdale, AZ 85251

$3,554,620 - 2Br/3Ba -  for Sale in Phoenician, Scottsdale
Open House
$3,554,620
2 Beds
2.5 Baths
3,035 SqFt
Status Active
MLS # 6702185
Property Type Single Family Residence
Price Type --
A NEW PRIVATE RESIDENTIAL COMMUNITY WITH A COVETED LOCATION AT THE BASE OF CAMELBACK MOUNTAIN ADJACENT TO THE ICONIC PHOENICIAN® RESORT IN SCOTTSDALE. ONLY A SHORT DISTANCE TO FASHION SQUARE AND OLD TOWN SCOTTSDALE. THIS COLLECTION OF CUSTOM HOMES TO BE BUILT EXCLUSIVELY BY CULLUM HOMES OFFERS ONE, TWO AND THREE-LEVEL RESIDENCES THAT REFLECT A TIMELESS, MODERN DESIGN AND LOOK OUT OVER THE BEAUTIFUL PHOENICIAN® GOLF COURSE. ALL PLANS ARE FULLY CUSTOMIZABLE. INTRODUCING THE CIRRUS A FLOOR PLAN, A TWO-STORY HOME FEATURING 2 BEDROOMS, 2.5 BATHROOMS, AND A 3-CAR GARAGE. THROUGH THE EXTRAVAGANT FRONT ENTRANCE LOCATED ON THE LOWER LEVEL, A BEAUTIFUL STAIRCASE OR AN ELEVATOR TAKE YOU TO BOTH LEVELS OF THE RESIDENCE. THE MAIN LEVEL BOASTS TWO EN SUITE BEDROOMS, PRIVATE FORMAL DINING AREA, OPEN CONCEPT KITCHEN, ADDITIONAL POWDER ROOM AND THE GREAT ROOM AREA. SPACIOUS KITCHEN WITH ISLAND, EAT-AT BAR AND WALK-IN PANTRY. A GLASS WALL LEADS YOU TO THE COVERED PATIO OFF THE GREAT ROOM WHERE GORGEOUS VIEWS AWAIT YOU. OWNER'S SUITE WITH WALK-IN CLOSET, DOUBLE SINK VANITY, SEPARATE TOILET ROOM, TUB AND WALK-IN SHOWER. ALONG WITH AN ADDITIONAL EN SUITE BEDROOM, LARGE LAUNDRY ROOM WITH EXTRA STORAGE AND A DECK AREA. THE COMMUNITY IS GUARD GATED FOR PRIVACY AND SECURITY. AT THE BASE OF CAMELBACK MOUNTAIN, YOUR PRIVATE POOL, FITNESS CENTER, AND SOCIAL SPACES OFFER AN INTIMATE GATHERING PLACE FOR WELLNESS, SOCIALIZING AND RELAXATION. RESIDENTS ARE OFFERED THE OPTION TO JOIN THE PHOENICIAN® AMENITY ACCESS PROGRAM - ACCESS AND DISCOUNTS TO THE NEW ATHLETIC CLUB, 38,000 SQUARE FOOT SPA, TENNIS FACILITY AND RESORT POOLS AT THE PHOENICIAN® RESORT.

134 Fay Canyon Road Sedona, AZ 86336

$3,550,000
4 Beds
6 Baths
4,458 SqFt
Status Active
MLS # 6781130
Property Type Single Family Residence
Price Type --
Experience luxury living in Sedona's prestigious Seven Canyons gated community. Located on the best lot on FaynCanyon Rd w/ panoramic views, this home was designed by PHX Architecture & built by Dorn Homes. The open floor plan boasts a greatroom w/ 23' ceiling & sliding glass doors framing stunning red rock views. Enjoy seamless indoor-outdoor living w/ 2 patios featuring a built-in barbecue, recessed TV, gas fire pits, & hot tub. This turnkey residence offers $100,000+ in landscaping upgrades, including private stairs leading directly to the clubhouse and pool. Control4 system technology enhances ease of use, integrating A/V & lighting throughout. Enjoy the private clubhouse, dining, pro-shop, fitness, and pool access, creating a complete lifestyle in Sedona's most exclusive community. Welcome to 134 Fay Canyon Rd, your own private sanctuary located in the coveted Retreat neighborhood in Seven Canyons. This impeccably designed floor plan allows for easy single story living for a couple with the ability to accommodate all of your friends and family on the lower level when they visit Sedona. This home embodies Sedona with its A+ Red Rock views, warm and cozy designer finishes, and incredible location with hiking trails, golf, and abundant outdoor activities right from your doorstep. This home is being sold mostly furnished (other than a few personal items) and is ready for you to move in! FIRST FLOOR: The first floor contains the living room, dining room, kitchen, walk-in pantry, laundry room, powder bathroom, primary bedroom/bathroom/closet, and outdoor patio. Our journey begins in the fully fenced private, lush courtyard that features a basalt water fountain, olive tree, upgraded landscaping, and shaded sitting area. The glass front door and wall of windows allow you to instantly welcome the red rock views, which this home is centered around. Upon entering the foyer, there is a powder bathroom on the left, which features a designer stone vanity and artisanal hand-crafted glass sink. The first floor has beautiful, large format travertine tile that feels delightful on the feet; it's as if you are walking in a Roman temple, but in Sedona! The home is designed around open concept living with the living room, dining room, and kitchen flowing effortlessly into one another. This room is 23 feet tall and is graced by clerestory windows, which allows gorgeous glowing light into the home at all times of day. This home is a light-lover's dream. LIVING ROOM: The living room is centered around the floor to ceiling stacked stone gas fireplace, which is not only a focal point of the home but is also highly functional and tremendously cozy on those crisp Sedona nights. The expansive first floor patio and sliding wall of windows from the living room allows for true indoor-outdoor living (see photos) with ample seating and a plumbed gas fire pit. The living room is adjacent to the dining room and offers supreme views over any restaurant in Sedona. Can you say order in? Or, perhaps whip up a meal in the state of the art kitchen... KITCHEN: The kitchen is fit for a chef with its high end, luxury appliances and an intelligent layout. Don't we all appreciate a functional kitchen? Appliances include a 36 WOLF gas range, SubZero fridge/freezer, SubZero wine fridge, SubZero beverage fridge, Miele steam oven, and built-in Miele Coffee Machine. Yes, you heard that right... you can enjoy gourmet cappuccinos (and more!) from the comforts of your own home. All of these appliances are nestled into the warm, solid wood cabinetry that are topped with creamy quartzite counters. Last but not least, there is even a walk-in pantry, wow! A true chef's dream. And did we mention the view? Of course, the kitchen is centered on the most breath GIVING views in all of Sedona. If you want to let the outdoors in even more, open the wall of kitchen windows to enjoy your kitchen with an al fresco flare. A door opens to the outdoor dining and entertainment area which features a built-in grill, retractable flat screen TV, and built-in heaters that make this an area you can enjoy year round. LAUNDRY/GARAGE: The laundry room is tucked just off the kitchen area and features built in cabinets with ample storage, a laundry sink, and a folding counter. And of course, even the laundry room has a view (see photos)! The garage is accessed from the laundry room and has epoxy floors, abundant storage space, and a dog washing station for Fido. The driveway is flat, which is somewhat rare in Sedona with our hilly topography. PRIMARY SUITE: Next on our journey, we head to the primary suite, which is on the first floor off of the living room. This suite is truly a private retreat with its cozy designer gas fireplace with backlighting (see photos), soaring red rock views, huge spacious closet, and a bathroom that is outfitted like a spa. You may never want to leave. Enjoy coffee in bed (from your Miele built-in coffee machine!) while gazing at your own private, red rock view that is all yours. And if you are a late riser, not to worry. The primary bedroom is outfitted with double blackout window treatments so you can get as much shut eye as you desire. The primary bathroom has a walk-in shower, oversized BainUltra soaking tub, double sink vanity, and not one, but two separate toilet water closets. Yes, you read that right, two toilets! That concludes our journey of the main living spaces. Next, we head to the ground floor, where all the fun happens! GROUND FLOOR: The ground floor features three en-suite bedrooms, an executive office, and an additional family room/lounge with a bistro bar. These spaces flow onto the lower level covered patio area that offers wonderful seating, a jacuzzi hot tub, and an astroturf grassy area for you or Fido to enjoy. Each guest bedroom is incredibly spacious and the en-suite bathrooms have double sink vanities, walk-in tile showers, and ample closet space. Your guests may just want to move in with you! This lower level also has built in rock steps leading out of the backyard that will take you directly to the clubhouse, pool, and fitness center. This dramatically shortens the walk to the clubhouse and this property is the only home that features these special steps in this neighborhood. Jaw-dropping views, high end, luxury living, and a cozy yet contemporary home... you truly CAN have it all at 134 Fay Canyon Rd. Don't wait long because this gem of a home will be snapped up quickly. This home is ready for its new owners, perhaps you!

4949 E Lincoln Drive Unit 10 Paradise Valley, AZ 85253

$3,550,000 - 3Br/4Ba -  for Sale in Montelucia, Paradise Valley
Open House
$3,550,000
3 Beds
3.5 Baths
4,160 SqFt
Status Active
MLS # 6773888
Property Type Single Family Residence
Price Type --
Nestled in the heart of Paradise Valley, in the gated community of Montelucia Resort, this Villa offers an exclusive sanctuary for those seeking elegance and ease. The villa, reminiscent of Spanish and Moroccan architecture, invites you to unwind along cobblestone paths and ivy-covered archways. This thoughtfully designed residence features 3 spacious bedrooms, 3.5 baths, and a dedicated office—ideal for work-from-home flexibility. The beautifully landscaped outdoor spaces and inviting fireplaces create a warm ambiance, while hand-painted Spanish tiles and luxurious finishes enhance the aesthetic. A charming guest house with a separate entrance makes this villa perfect for hosting visitors, offering a seamless lock-and-leave lifestyle. Residents enjoy. exclusive access to all resort and hotel amenities, a community pool and fitness center, just steps away from their private villa. Embrace a lifestyle of sophistication and tranquility in this remarkable community, where luxury and convenience meet.

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