Mortgage Myths: Here’s Why You Don’t Need a Full 20 Percent Down Payment

Mortgage Myths: Here's Why You Don't Need a Full 20 Percent Down Payment If you’re just getting into the real estate market, you may have heard that 20% down is the ideal percentage in order to lower your monthly payments and get your mortgage application approved. However, while 20% is often suggested, many people struggle to come up with this amount of money. If you’re staving off home ownership, here are some reasons you may not need to hold off as you long as you thought.

Minimizing Your Insurance Costs

Putting down 20% of the total purchase price of your home is often suggested, but it doesn’t definitively mean that your application won’t be approved if you don’t. If you have a good credit score and are in good financial standing, putting less than 20% down means you’ll have to pay Private Mortgage Insurance (PMI); however, it can be worth paying the extra funds in order to get into the real estate market sooner and start paying into your most significant investment.

Mortgage Programs For Less Than 20%

It may seem less possible to buy a home if you only have 5 or 7% of the purchase price, but there are many programs in the United States that enable those with limited funds to apply for a mortgage. From the Federal Housing Administration (FHA) to Fannie Mae and Freddie Mac, there are many lenders that can offer you mortgage programs that will work for your situation. While higher rates come in tandem with a lower down payment, there are options out there for those who haven’t saved quite enough.

Why Put Down 20%?

Putting down 20% is not a necessity for mortgage approval or purchasing a home, but it can be a great means of saving money in the long run and reducing your interest rates. If you’re raring to get into the real estate market and don’t want to wait for the bills to stack up, that’s OK, but if you want to hold off and save up additional funds before diving in, this can mean more money and a more solid investment in the future.

The magic number is often 20% when it comes to a down payment on a home, but you don’t require this percentage of your home’s price in order to get approved for a mortgage. If you’re currently considering diving into home ownership and would like to know more about the opportunities in your area, give me a call – J.P. Cook – 602-320-4253.

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3446 N 47th Street Phoenix, AZ 85018

$2,099,000
4 Beds
3 Baths
2,563 SqFt
Status Active
MLS # 6742128
Property Type Single Family Residence
Price Type --
Architect Designed Home in the Heart of Arcadia. This property is a 2024 modern new build meticulously constructed and designed by an architect from the ground up. Blending organic neutral colors that complement the desert throughout the home. As you step inside, you'll be captivated by your gourmet kitchen, where vertical subway tiles elegantly line the walls and backsplash. The kitchen flows effortlessly into the inviting living and dining room, where a large fireplace mantel with beautiful designs stretches from floor to ceiling. The mantel has a smart picture frame TV that comes with the home. Engineered flooring runs throughout the home, complementing the designer appliances and gas burner stove and oven. A large centerpiece island with room for seating and a deep farmhouse sink finish the kitchen with excellence. The primary suite occupies the left side of the home, showcasing modern touches and a large walk-in closet. Practical features include a pantry perfect for Costco runs and a laundry room with counter space, a sink, and a side entrance. To end each day in style, you'll pull into your recently finished epoxy flooring garage, equipped with a large tankless water heater ensuring endless hot water. On the right side of the home, you'll find three rooms: One en-suite, a large second room and a versatile middle room, perfect for a nursery, office, or game room. Moving towards the backyard, large glass sliders connect you outside. Here, you'll discover over 600 sq ft of covered patio space, ideal for relaxing and entertaining. The backyard features a built-in BBQ with utility sink, a completely re-plastered pool with new pipes and built in seating is perfect for warm days. On the other side of the grass, you'll find an open side yard spacious enough for an RV, boat, or car. The front yard captures the essence of Arcadia living, offering a perfect spot to sit outside, watch the kids play, or take in the beautiful red rock views of Camelback Mountain. This opportunity won't last long. With the added value of the neighborhood, including two new builds priced at $2.5M+ just houses away, this home is a rare find. Welcome to your new home in Arcadia, where modern luxury meets timeless charm.

7175 E Camelback Road Unit 902 Scottsdale, AZ 85251

$2,099,000
2 Beds
2.5 Baths
2,041 SqFt
Status Active
MLS # 6695128
Property Type Apartment
Price Type --
Step into luxury living at the exquisite Scottsdale Waterfront Residences, nestled in the vibrant heart of Scottsdale! Perched on the 9th floor, this residence boasts breathtaking views of Camelback complemented by an expansive balcony perfect for hosting gatherings and enjoying the Arizona sunshine. The kitchen is a culinary paradise, featuring top-of-the-line amenities such as a 100+ bottle wine refrigerator, Viking gas cooktop, Viking refrigerator, and a timeless tile backsplash, all seamlessly integrated into the open great room floor plan, ideal for both cooking and entertaining. Experience the epitome of convenience with the Waterfront's full-service building amenities, including 24-hour security, rooftop pool, fitness center and spa services. views, a sophisticated resident club room, a state-of-the-art fitness center, a versatile board room, a fully-equipped business center, and the added luxury of valet parking. Indulge in the ultimate urban lifestyle with the convenience of walking distance access to over 100 restaurants, world-class shopping destinations, and vibrant art galleries, ensuring every day is filled with excitement and possibility. Embrace the essence of the good life at Scottsdale Waterfront Residences, where luxury, convenience, and sophistication converge to offer a lifestyle beyond compare.

13272 E La Junta Road Scottsdale, AZ 85255

$2,098,337
3 Beds
3.5 Baths
4,034 SqFt
Status Active
MLS # 6776228
Property Type Single Family Residence
Price Type --
Just Completed! Stunning Rosewood luxury home at Storyrock in Scottsdale on 1/2+ acre N/S lot w/ open space on two sides + mountain views in gated Rosewood Canyon w/ miles of walking/hiking trails in McDowell Sonoran Preserve. Enjoy indoor/outdoor living w/ 16-foot wide Disappearing Wall of Glass + custom Andersen ''view windows.'' Stunning Kitchen w/ upgraded cabinetry & custom features, large Island, Quartzite countertops, 6-burner Wolf gas range w/ large convection oven + 2nd convection oven, microwave, 48'' Sub Zero + wine ref! Professionally-designed w/ gorgeous wood flooring, Ortal fireplace, custom iron/glass front door, Master Bath w/ Quartzite + oversized shower & tub. Ensuite Bedrooms, Den, dramatic Powder, ''Pool Bath,'' oversized 3-Car Garage w/ huge Storage Area & much more!

37268 N 110th Street Scottsdale, AZ 85262

$2,095,000
5 Beds
5 Baths
5,217 SqFt
Status Active
MLS # 6758268
Property Type Single Family Residence
Price Type --
This North Scottsdale desert gem is a stunning retreat with a resort-style backyard. Situated on nearly an acre in a tranquil gated community, this 5 bed, 5 bath home boasts over 5,200 square fee of sophisticated living space designed to capture breathtaking views. The open floor plan features expansive windows, a chef's kitchen and main-level primary suite complete with a spa-like bath and sitting area with stone fireplace. Step outside into your impressive backyard, featuring a sparkling heated pool and spa, sport court, putting green, and built-in kitchen area with grill. The home includes countless upgrades such as custom iron doors, LED lighting, Lutron shades, Control 4 smart home technology, and 4-car garage with cabinets and epoxy floors. Just minutes from top golf courses

20717 E Pummelos Road Queen Creek, AZ 85142

$2,095,000
5 Beds
4 Baths
3,964 SqFt
Status Active
MLS # 6764160
Property Type Single Family Residence
Price Type --
Welcome to the prestigious community of Bridle Ranch, a gated enclave offering unparalleled luxury. This stunning 2021 built Modern Farmhouse-style home boasts 3964 sq ft of meticulously designed living space, featuring a functional split floor plan and an expansive open great room with 16' pocket sliding glass doors, seamlessly blending indoor/outdoor entertaining spaces. The gourmet kitchen is equipped with a lrg island, 6 burner gas cooktop, dbl ovens, 2 dishwashers, and an oversized walk-in pantry. Featuring 5 beds and 4 baths, w/ an attached - separate entrance casita, ideal for guests or multi-gen living. Situated on nearly a 1/2 acre, enjoy a private sport court, 6-hole mini golf course, and a cabana with a built in BBQ. Walking distance to new QC entertainment and restaurants. Luxury Living in the Heart of Queen Creek Welcome to the prestigious Toll Brothers community of Bridle Ranch, a gated enclave offering unparalleled luxury and comfort. This stunning Modern Farmhouse-style home boasts 3964 sq ft of meticulously designed living space, featuring a functional split floorplan perfect for modern living. Step inside to discover an expansive open great room with 16' pocket sliding glass doors, seamlessly blending indoor and outdoor entertaining spaces. The gourmet kitchen is a chef's dream, equipped with a large island, a Gas KitchenAid 6 burner cooktop, double ovens, 2 dishwashers, and an oversized walk-in pantry. This home offers 5 spacious bedrooms and 4 luxurious bathrooms, including an attached casita with a separate entrance, ideal for guests or multi-generational living. The oversized laundry/mudroom adds convenience and functionality to your daily routine. Situated on nearly half an acre, the outdoor amenities are equally impressive. Enjoy a private sport court, a 6-hole mini golf course, and a cabana with a built-in BBQ, perfect for hosting gatherings. The temperature-controlled garage ensures your vehicles are well-maintained year-round. Located within walking distance to the new Queen Creek entertainment and restaurants, this private corner lot offers both tranquility and convenience. Don't miss the opportunity to own this exquisite home in one of Queen Creek's most sought-after communities.

4588 S Avenida Corazon De Oro -- Gold Canyon, AZ 85118

$2,095,000
3 Beds
3.5 Baths
3,693 SqFt
Status Active
MLS # 6767061
Property Type Single Family Residence
Price Type --
LOCATION, LOCATION! VIEWS, VIEWS! This home lives as if new! Incredible nearly 100% remodel in an unmatched location overlooking the signature hole 5th green of the famous Dinosaur Mountain golf course w/unobstructed views of the magnificent Superstition Mountains in the gated community of Vista Del Corazon in Gold Canyon. Quietness & privacy prevail. 35 miles to Sky Harbor as only one traffic light separates you from the Atlantic & Pacific Oceans. Virtually every surface was upgraded including floors, cabinets, baths, kitchen, appliances, new HVAC's, new paint inside & out. 17' doomed ceilings, wood beams, stone columns & cantera accents t/o. 10.5' glass doors on the main Superstition Mountain view, 4 rooms w/fireplaces, 11'/12'+ ceilings. Formal dining, office, all bedrooms ensuite. Coveted north/south orientation. Oversized 3 car garage. High ceilings with clerestory windows bringing welcomed natural light. Exquisitely redecorated from floor to ceiling in 2023-2024 in today's timeless modern style with nothing left to chance and no stone left unturned. 10.5' motorized electric doors bring the Superstition Mountain range into this home. Leathered granite & quartz countertops. All new stainless GE Monogram appliances including 6 gas burner stove with the 'simmer ' feature. Eat-in kitchen and breakfast bar. Attractive 'leathered granite' kitchen island and on bar countertop, quartz counters elsewhere throughout. Separate full bar. Insta-hot and also filtered water at sink. Convection wall oven and duo steam cleaning microwave/oven. Walk-in pantry. Coffee bar. All bedrooms ensuite with walk-in closets. Two-way gas fireplace between Primary bedroom and office. Stone wall accents, plantation shutters, lighted stone lined art niches, all new recessed LED canned lighting. 32 Cantera columns throughout, inside and out. Two new Trane high efficiency HVAC's: one 4-ton 17 seer 2 stage and one 5-ton 16 seer 2 stage HVAC units under manufacturer's warranty. Plumbed for central vacuum. Cantera stone surround on fireplace. Primary bedroom has his and hers closets, private water closet, oversized shower and freestanding modern soaking tub. Surround sound throughout. 8' solid core doors with Emtec hardware. Five security cameras and a Ring doorbell. Remote control darkening blinds in living/theatre room. Oversized 3-car garage--42' wide by 26'6 deep with 3' spacing between bays. Shortest bay 22'10 and longest 26'6. Epoxy floor with a craftsman's dream workshop and plenty of storage. Adjacent to garage is an air-conditioned bonus/media/man cave/golf/hobby room 14' x 10.5' with sink nearby and also can be just storage--heated and cooled by a mini-split. EV 220 volt charging station in garage. Heated pool and spa. Separate free standing spa is available. Two outdoor seating areas with never ending magnificent views including 2 fire pits and an attractive stone fireplace. Roof level upper view deck. New Coyote 42 gas BBQ 2024.

14828 N 15th Avenue Phoenix, AZ 85023

$2,095,000
7 Beds
4.5 Baths
6,072 SqFt
Status Active
MLS # 6765619
Property Type Single Family Residence
Price Type --
Where to begin? Let's start with the prestigious guarded Coral Gables Estates. Over 1/2 a mil spent in renovations... $80k in gorgeous doors & wall sliders, $100k in new windows & shutters, charming new front facade where you can find serenity with your new Koi pond. Downstairs features a brand new light & bright gourmet kitchen, 2 family gathering areas, 3 dining options, a half bath, full bath, study, large laundry/mud room, soaring ceilings and a beautiful primary. North side of property has stairs leading to a private bedroom. The south side features a loft plus 4 bedrooms and 2 bathrooms. Want to spend a little family time out back? Maybe enjoy your sparkling pool, BBQ, Ramada, firepit, large grass yard or the new sport court. And since 1 Koi pond is never enough...you get 2. Enjoy!

10891 E Via Dona Road Scottsdale, AZ 85262

$2,095,000
3 Beds
5 Baths
3,916 SqFt
Status Active
MLS # 6769588
Property Type Single Family Residence
Price Type --
Move-in ready luxury awaits in this completely remodeled 3-bedroom, 5-bathroom home, perfectly situated on a corner lot in the exclusive and gated Candlewood community! The home was renovated top to bottom in 2022 and 2023 including New Electrical Wiring, mechanicals and new Roof. The interior features an open floor plan with an impressive 3,922 sqft of living space and boasts 3 cozy fireplaces, a den, great room, and bonus room. The home exudes classic charm with white paint tones, warm wood floors, Italian porcelain tiles, and stylish lighting, including chandeliers. Every window has interior and exterior motorized blinds and the large windows fill each space with natural light. Experience the tranquility of nature while dining and lounging in your living area The split primary suite offers 2 walk-in closets, and a luxurious full ensuite bath with a separate shower and tub. Each of the additional bedrooms have walk-in closets and ensuite bathrooms. The gourmet kitchen includes reverse osmosis, multiple ovens, a walk-in pantry, quartz countertops, and two kitchen islands. Step outside to the professionally landscaped yard with a brand new putting green, built-in BBQ, covered patio, and a sparkling pool with a waterfall, spa and new pool equipment. The 3-car garage with EV charger and epoxied flooring completes this exceptional home, offering the ultimate blend of luxury and comfort!

3770 S Bridle Path Flagstaff, AZ 86005

$2,095,000
4 Beds
3.5 Baths
3,455 SqFt
Status Active Under Contract
MLS # 6723781
Property Type Single Family Residence
Price Type --
Experience unparalleled luxury, comfort, and security in Troon managed Flagstaff Ranch GC. The home is a meticulously designed Luxury Mountain Modern home nestled on a prime Golf Course Estate Lot. The residence has an attached 800 SF Casita with full kitchen and separate entrance for guests and extended family. This single-level residence boasts 2 covered decks featuring a large gas fire pit overlooking the 5th fairway with views of San Francisco Peaks. The gourmet kitchen is equipped with Wolf, Sub-Zero and Asko appliances, Quartzite counters and a 100+ bottle wine cooler. The living room features a floor-to-ceiling oversized fireplace crafted from imported Pennsylvania Blue Stone. Exquisite custom lighting, fixtures, whole-house sound, security, lighting, and temperature control.

12322 E Black Rock Road Scottsdale, AZ 85255

$2,082,995
3 Beds
3.5 Baths
3,353 SqFt
Status Active
MLS # 6763950
Property Type Single Family Residence
Price Type --
*NEW CONSTRUCTION: SPRING 2025 COMPLETION. Interior Finishes have been added!* This modern Irini floor plan is under construction on an elevated home site! Features include an attached Casita with a separate entry, a private Courtyard, Great Room with a 90 degree sliding glass doors and 60'' linear fireplace, SS Wolf appliances, double wall ovens, 48'' Sub Zero Fridge and large study with wet bar. This is the low-maintenance, LUXURY, lock & leave home you have been waiting for! Located in the stunning guard-gated community, Sereno Canyon. The ultimate resort lifestyle community in North Scottsdale by Toll Brothers. Come take a tour today!

3412 E Kachina Drive Phoenix, AZ 85044

$2,075,000
3 Beds
4.5 Baths
4,639 SqFt
Status Active Under Contract
MLS # 6778176
Property Type Single Family Residence
Price Type --
This luxury Ahwatukee Custom Estates home is truly unforgettable, Enter into the private, serene front courtyard with gorgeous landscaping & fountain. You'll be amazed as you enter this home with its open floor plan, high ceilings, beautiful wood beams, four propane fireplaces, & three gathering/sitting areas. Oversized windows throughout the home frame the backdrop of South Mountain. All bedrooms have a private entrance, own bath, and walk-in closets. Chef's will delight in the gourmet kitchen complete with Viking and Subzero appliances & large butler's pantry. Your backyard oasis is perfect for entertaining with a sparkling pool, turf lawn, mature landscaping, BBQ and several seating areas all while backing to the preserve with stunning views. Don't miss this spectacular opportunity! Lastly, the expansive backyard includes a covered patio, extended flagstone seating area, a built-in BBQ, and a sparkling blue pool w/a rock waterfall! What are you waiting for? Act now!

8265 E Kramer Circle Mesa, AZ 85207

$2,065,000
5 Beds
4.5 Baths
5,134 SqFt
Status Active
MLS # 6743893
Property Type Single Family Residence
Price Type --
TOTAL REMODEL on arguably the best lot in Savona! Cul-de-sac AND backs to a wash! Total Privacy! Plus CASITA, OFFICE, and THEATER rooms. Inside upgrades include: Wolf + Sub Zero appliance package, double ovens, custom cabinetry, porcelain kitchen counters, brick & stone backsplash + accents, quartz bath counters, new lighting, plumbing fixtures, & LED can lights thru out, surround sound/multiple zones, security system, 20' x 10' multi slide door, cantera stone fireplaces, + more! Outside upgrades include: new commercial grade misting system, heated pool + spa, epoxy garage floor w/soft water hose bib for car washing, new garage doors, new eave trim lighting, gas firepit, HUGE yard w/new turf + putting green, surround sound speakers, and more! Close to everything!

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