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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6939 E Chaparral Road Paradise Valley, AZ 85253

$1,695,000

6 Beds

4 Baths

2,673 SqFt

Status Active

MLS # 6776773

Property Type Single Family Residence

Price Type --

Brand new Heated pool in NOV 2024! PV home on almost half acre lot with NO HOA restrictions. Incredible Camelback Mountain views, walking distance from world-class Old Town Scottsdale restaurants/nightlife, & even fashion square mall. This 6 Bed, 4 Bath home with easy maintenance turf yard, putting greens, volleyball court w/ 2 hot tubs. This home has 2 kitchens and masters making it perfect for house hacking/investment or a mother-in-law suite. Home has separate entrances and ability to close off door to create two 3 bed, 2 bath living quarters.This home can can be used as a Air BNB, Behavior Health, Assisted Living, Sober Living; sky is the limit with this remodeled home in Desirable Rancho Vista PV neighborhood

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13439 N 79th Street Scottsdale, AZ 85260

$1,695,000

3 Beds

2.5 Baths

2,710 SqFt

Status Active

MLS # 6776801

Property Type Single Family Residence

Price Type --

Phoenix Home & Garden Cover Home July 2022! This beautifully restored mid-century modern gem is so special and unique, you don't want to miss it! The main living room features original exposed beamed ceilings, gorgeous stacked stone fireplace, floor to ceiling & clerestory windows and opens to the new vibrant custom kitchen and dining space. Handmade Moroccan tiles adorn the kitchen backsplash with custom glass shelving and eco-friendly terrazzo countertops add a timeless appeal. In addition to the great room, there is an oversized bonus/game room with stone faced fireplace and vaulted exposed beams. Rounding out this 3 bedroom home is a bonus office/den space. All of this, plus located on a 32,000+ square foot lot with horse privileges in the heart of Scottsdale!

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10468 E Quartz Rock Road Scottsdale, AZ 85255

Open House

$1,694,900

4 Beds

4 Baths

3,691 SqFt

Status Active

MLS # 6746155

Property Type Single Family Residence

Price Type --

A true Troon oasis! This beautiful custom home was perfectly designed to gaze directly upon Troon Mountain. Enter through the front courtyard and imagine yourself relaxing in the pool, or sitting on the patio with one of Scottsdale's most picturesque mountains as your backdrop. Step inside, where you'll find a living room with a wall of windows, again designed with the specific goal of soaking in those majestic views, topped by clerestory windows for abundant light. Subtle southwest details add tons of charm, like saltillo flooring, soft-edge niches and fireplace surrounds, and vega beam accents inside and outside. Continue to the kitchen, with gorgeous granite counter tops, stone accent backsplash, stainless appliances, and a generous pantry. Here you'll also find the comfortable sitting room, with a second fireplace and warm wood accent ceilings. The bedroom layout is ideal. The primary suite has access out to a private patio and an ample ensuite bathroom with separate shower and tub, as well as two walk-in closets. Also within the main house are two large guest bedrooms, each with walk-in closet and ensuite bathroom. Don't miss the casita, this fourth bedroom is a complete setup for your guests, with plenty of space for a bed and seating/office area, a niche for the mini fridge, and of course full bathroom and walk-in closet. The garage is huge, with more than enough space for two cars plus almost one full-size car space on the side for storage, workshop, bikes, golf cart, and more. Imagine having all of this in a gated community within Troon, one of Scottsdale's most renowned neighborhoods. Not just that, but in the center of Troon, walking distance to your morning hike at the Pinnacle Peak Mountain or lunch at Pinnacle Grill, or grab your bike and continue to the Four Seasons Resort for dinner at Proof Canteen, Talavera Steakhouse, or just enjoy a massage at the spa. The list is practically endless for golf, fine dining, shopping, hiking, everything that north Scottsdale has to offer, just minutes away. Come see this amazing home today.

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6836 N 13th Place Phoenix, AZ 85014

$1,694,500

4 Beds

4.5 Baths

3,195 SqFt

Status Active

MLS # 6745364

Property Type Single Family Residence

Price Type --

Opportunity is knocking. *TO BE BUILT* Welcome to your future dream home in one of Phoenix's most sought-after neighborhoods! Nestled in the prestigious, A+ rated Madison School District, this rare, custom build opportunity offers you the chance to create a home that's as unique as you are. Imagine designing your perfect sanctuary, tailored to your every desire, right in the vibrant heart of Uptown Phoenix! Whether you envision a modern architectural masterpiece or a charming, classic farmhouse, this prime location offers the perfect canvas to bring your vision to life. Stroll through the nearby trendy cafes, indulge in gourmet dining experiences, or enjoy a night out at the local bars, all within a stone's throw of your future doorstep. *Photos are of previous homes. This is more than just a lot; it's an invitation to build your forever home in a community known for its charm, convenience, and top-tier amenities. Don't miss out on this incredible opportunity to create the home you've always dreamed of, in a location that truly has it all.

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6836 N 13th Place Phoenix, AZ 85014

$1,694,500

4 Beds

4.5 Baths

3,195 SqFt

Status Active

MLS # 6745366

Property Type Single Family Residence

Price Type --

Opportunity is knocking. *TO BE BUILT Discover the endless possibilities of crafting your dream home in one of Phoenix's most coveted neighborhoods! Located in the prestigious Madison School District, known for its A+ rating, this rare custom build opportunity allows you to design a residence that perfectly reflects your style and aspirations. Imagine creating your own oasis, tailored to your every wish, right in the lively heart of Uptown Phoenix. Whether your vision is a sleek, modern architectural gem or a timeless, classic farmhouse, this prime location serves as the ideal backdrop to bring your dreams to life. Enjoy the convenience of trendy cafes, gourmet dining, and vibrant nightlife, all just steps from your future doorstep. Please note: Photos are of previous builds.

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7250 E Paradise Drive Scottsdale, AZ 85260

Open House

$1,690,000

5 Beds

3 Baths

3,650 SqFt

Status Active

MLS # 6708996

Property Type Single Family Residence

Price Type --

Welcome to the Cactus Corridor. Single level home, Situated on 1/2 acre lot, 3 car garage, & sparkling play pool, mature landscaping & fruit trees. NO HOA. This home features 5 spacious bedrooms PLUS a dedicated office, perfect for remote work. You're greeted by soaring high ceilings and windows that create an open feel. Multiple living spaces are the ideal setting for family gatherings and entertaining guests. Formal dining. Bright and open kitchen with white cabinets, kitchen island, & granite countertops, Oversized garage provides plenty of room for your vehicles and additional storage. Living room with real fireplace. Oversized primary bedroom with French doors to the backyard. Separate soaking tub and walk in shower, dual sinks and large walk-in closet. For those who love to travel, Scottsdale Airport is just a short drive away, making your getaways and business trips incredibly convenient. Shopping enthusiasts will appreciate the close proximity to Kierland Commons and Scottsdale Quarter, where you can indulge in a variety of dining, shopping, and entertainment options. Don't miss out on the opportunity to own this exceptional Scottsdale property, where luxury meets convenience. Experience all that this magnificent home has to offer!

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35267 N 98th Street Scottsdale, AZ 85262

$1,690,000

3 Beds

3.5 Baths

3,517 SqFt

Status Active

MLS # 6731879

Property Type Single Family Residence

Price Type --

Surrounded by the beauty of the Sonoran Desert, in the community of Legend Trail, this home is a true masterpiece, combining perfect size, style, and low maintenance for year-round enjoyment. This extraordinary single-level custom home is positioned on a generous corner lot and offers stunning mountain views and natural desert surroundings. Immaculate pride of ownership radiates through every detail of this residence, with over $175,000 in meticulous updates that elevate its luxurious charm. As you step through the custom iron front door, the grandeur of the home unfolds. The great room seamlessly connects to the gourmet kitchen, creating an inviting space for entertaining. Revel in the warmth of a stone fireplace and accent wall in the great room. The culinary gem of a kitchen boasts high-end GE Monogram appliances, granite countertops, a walk-in pantry, and a spacious island with a prep sink. Recent upgrades, including a new range hood vent and island cabinet doors, showcasing a commitment to modernity and functionality. The floor plan is thoughtfully designed, creating an inviting and practical space for both everyday living and special occasions. The primary suite is a haven of tranquility, with ample natural light, a tray ceiling, and a recently updated ensuite bath featuring double vanities, a soaking tub, and separate shower. The custom-built master closet is illuminated by new lighting, and built-ins provide additional storage solutions. Step into the enchanting backyard oasis, where a sprawling covered patio overlooks a heated pool and spa, a built-in BBQ, and a captivating fire pit. Recent landscaping enhancements, including additional trees and strategically placed gravel with drainage systems, elevate the outdoor experience. Legend Trail is a unique, well established, master-planned community in North Scottsdale, home to world famous resorts and upscale shopping, dining and entertainment experiences. Residents of Legend Trail enjoy resort-style amenities, fitness facilities and classes, golf, tennis and pickleball courts and direct access trails to scenic McDowell Sonoran Preserve.

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41893 N Bonanza Lane San Tan Valley, AZ 85140

$1,690,000

3 Beds

2 Baths

2,230 SqFt

Status Active

MLS # 6747014

Property Type Single Family Residence

Price Type --

Discover the ultimate rural retreat on this nearly 5-acre horse property in the Queen Creek Ranchos neighborhood! The main house features 3 bedrooms, 2 bathrooms across 1,780 square feet with a stylish kitchen that includes beautiful granite countertops. A 450 sq. ft. casita offers additional accommodations with 1 bedroom, kitchenette, full bathroom and laundry room. In 2023, a new outdoor space was added with a brand new heated pool and spa surrounded by travertine, a built-in grill under a pergola, and a wood-burning fire pit. The property offers extensive equestrian facilities, including a 13-stall barn, a large riding arena, and a metal hay shed. The property also boasts an equine therapy pool, ideal for horse enthusiasts, along with a 1,080 sq. ft. workshop for versatile use.

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2912 S 198th Lane Buckeye, AZ 85326

$1,688,000

4 Beds

4 Baths

5,477 SqFt

Status Active

MLS # 6776797

Property Type Single Family Residence

Price Type --

ELEGANT 5477 SF LIVABLE-8596 SF UNDER ROOF CUSTOM HOME ON 3+ IRRIGATED ACRES WITH SEPERATE LIVING QUARTERS. HUGE SHOP AND COVERED CARPORT GOURMET KITCHEN WITH 48'' WOLF STOVE 4 OVENS AND HUGE BUTLER PANTRY, 4 BEDROOM, 5 CAR/RV GARAGE, CENTER COURTYARD WITH 2X6 EXTERIOR WALLS, NEW DUAL PANE BRONZE INSULATED-LOW E WINDOWS, SOLID WOOD DOORS-KNOTTY ALDER, TYPHOON GOLD GRANITE IN MASTER BATH, FOUR PROPANE FIREPLACES, WOOD SHUTTERS 16' CELILINGS AND TO MUCH MORE TO LIST

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575 Deer Pass Drive Sedona, AZ 86351

$1,685,000

3 Beds

2.5 Baths

2,193 SqFt

Status Active

MLS # 6777844

Property Type Single Family Residence

Price Type --

Discover ultimate luxury in this completely remodeled ranch-style home in the heart of VOC Sedona. With over $500K in upgrades, this home is brand new from top to bottom! The new roof, HVAC system, and 9-foot Pella sliding glass doors, along with soaring 10-foot ceilings, create an airy, modern atmosphere that flows effortlessly throughout the home. The chef's kitchen is a true masterpiece, designed with high-end finishes and perfect for entertaining. Outfitted with brand-new wood shaker cabinets, granite slab backsplash and countertops, stainless steel appliances, and an oversized island with a breakfast bar, it's the ideal space for creating and enjoying meals while soaking in the spectacular red rock views. The spacious owner's suite is a serene retreat, featuring a luxurious ensuite with meticulous attention to detail, including a granite vanity with porcelain vessel sinks, a freestanding double slipper tub, an oversized dual rain head shower, and a generous walk-in closet. Step outside to a backyard oasis where breathtaking red rock and mountain views set the scene. The expansive outdoor living area includes a large covered patio, perfect for lounging or dining, a swing bed for ultimate relaxation, and a built-in grill with an eating bar. Enjoy the travertine stone patios, cozy up by the fire pit, or take advantage of the 6-hole golf putting green. For added comfort, unwind in one of the four built-in hammocks while soaking up the desert serenity. With a spacious 3-car garage and pristine desert landscaping, this home is a true Sedona gem! Whether you're seeking luxury, relaxation, or a perfect home for entertaining, this property offers it all. Don't miss your chance to own this one-of-a-kind residence in Valley Vista Estates!

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1250 E Smokehouse Trail Phoenix, AZ 85085

$1,680,000

4 Beds

4.5 Baths

4,124 SqFt

Status Active

MLS # 6719513

Property Type Single Family Residence

Price Type --

The Sedona, a contemporary open-concept design, soon to be constructed as full spec home. This luxury home features an island kitchen and top-tier Wolfe and Subzero appliances as an option, perfect for culinary enthusiasts. The property includes a paver driveway, oversized three-car tandem garage, and a 49' RV garage, ideal for car collectors and RV enthusiasts. The layout includes 4 bedrooms plus an office, 4.5 bathrooms, grand guest suite with its own living area, and a luxurious owner's suite with a freestanding tub, walk-through double shower, and oversized walk-in closet. Details include 90/10 smooth contemporary wall finishes, 8' doors, & 12 ft. ceiling. 2x6 frame exterior, fully sheathed walls, spray foam insulation and post tension slab foundation. Photos & options are from model.

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6711 E Camelback Road Unit 45 Scottsdale, AZ 85251

$1,680,000

3 Beds

2.5 Baths

2,136 SqFt

Status Active

MLS # 6777548

Property Type Townhouse

Price Type --

Gorgeous immaculate with designer touches throughout! FABULOUS LOCATION in 7/24 gated famous Pavoreal community - across the street from Fashion Square Mall and moments away from all that Downtown Scottsdale has to offer! Move-in and feel like you are on vacation every day. Feel the luxury with over $500,000 of beautiful designer upgrades which include gourmet kitchen, lush master, split floorplan with second master and separate office/bedroom with 1/2 bath. Full 2 car garage with perfect build-in storage with access to wonderful back patio on North side. On private cul-du-sac within steps from resort like community pool, spa and work out facility. Live moments from the finest restaurants, cafes and downtown Scottsdale shopping and still be close to Phoenix Sky Harbor Airport.

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