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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35003 N Ellsworth Road Queen Creek, AZ 85144

$1,600,000

5 Beds

4.5 Baths

4,411 SqFt

Status Active

MLS # 6761572

Property Type Single Family Residence

Price Type --

Escape to this beautiful custom home on 3.44 acres in the heart of Queen Creek. The coveted views of the San Tan Mountains are second to none. The original home boasts charm and rustic appeal; while the new 2,500sf addition is grand, displays beautiful views, provides many opportunities and extends the comfort throughout. Break bread in the dining room fit for royalty, relax and unwind in either of the living rooms and host your guests or spoil your family with a loft and kitchenette upstairs. Outside you will find a covered patio, perfect for sunsets, a steel covered garage and an inside garage/shop. Not to mention the 3.44 acres of land, just waiting for your personal touch -- horse stables? Arena? Pool and spa? The choice is yours! This home is truly one of a kind!

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43508 N Jackrabbit Road San Tan Valley, AZ 85140

$1,600,000

4 Beds

3 Baths

3,553 SqFt

Status Active

MLS # 6762939

Property Type Single Family Residence

Price Type --

Fantastic 5 acre ranch with everything a horse person could want. 26 Stalls, some extended to 12x24. Round Pen. 4 Irrigated Pastures. 100x300 Sand Roping arena. Property completely fenced with no-climb and gated with new bridges over ditch. Adobe/Block home with 4 bedrooms, fire place and In-law suite with mini kitchen and own entrance. Hurry on over as this will not last!

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56 S Prairie Road Gilbert, AZ 85296

$1,600,000

4 Beds

3 Baths

4,006 SqFt

Status Active

MLS # 6764759

Property Type Single Family Residence

Price Type --

Beautiful Custom Home Located in the Sought-After Morrison Ranch Community in Gilbert. This Open, Light and Bright Floor Plan Boasts a Gourmet Kitchen with Extra Large Marble Slab Island, Custom Cabinetry, Sub Zero Refrigerator and Wolf Appliances. The Walk In Pantry has Custom Built-Ins with Antique Barn Door. Master Retreat with Spa Like Bath and Walk In Closet. Secondary Bedrooms are Separated By Jack and Jill Bath and its own Private Vanity. The 4th Bedroom has an Adjacent 3/4's Bath and Private Exit to Pool Area. Resort Style Backyard with Fenced in Pool, Raised Spa, Water Feature, Built In BBQ, Large Umbrella to Cover Pool and there is also a Pickleball Court, for Outdoor Living at its Finest! With Private Sauna in the Garage, Cabinets and Split Air for Workout Room. This Home Blends Modern Luxury with Practical Living!

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8561 E Cactus Wren Circle Scottsdale, AZ 85266

$1,600,000

4 Beds

4 Baths

3,484 SqFt

Status Active

MLS # 6765691

Property Type Single Family Residence

Price Type --

Highly upgraded gem with stunning views in gated community of Boulder Ridge. Enter thru a charming courtyard into an open common area with 14' ceilings, fireplace, and bar set between family room and home theater. Kitchen offers chiseled edge granite, large island, stainless steel appliances, stained shaker cabinets & walk-in pantry. Interior upgrades include sun screens throughout, central vac, and stained cabinets in baths, den & laundry to match the kitchen. Spacious master suite has dual walk-in closets & sink areas. At over 2/3 acre, the oversized lot offers privacy and generous space from the neighbors. The oasis backyard features pebbletec pool, spa, gas fireplace, built-in BBQ and exterior poolside bathroom. Large upper deck with traditional stairway offers 360deg mountain & city light views, along with power & lighting for entertaining. Besides that view deck, what sets this home apart from nearly all in the neighborhood... 4 car garage, with one bay offset with a secondary laundry, perfect for woodshop or secluded storage. Priced to sell quickly!

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20866 W Werner Place Buckeye, AZ 85396

$1,600,000

4 Beds

3.5 Baths

4,085 SqFt

Status Active

MLS # 6769339

Property Type Single Family Residence

Price Type --

Exquisite Luxury Retreat in Verrado's Main Street District. Discover an extraordinary, fully remodeled residence situated on a coveted corner park lot in the heart of the vibrant Main Street District of Verrado. This meticulously updated gem boasts a wealth of enhancements, including a new HVAC system, new roof, and a stunning pool and spa, complemented by beautifully landscaped front and backyards. Spanning over 4,000 square feet, this home showcases an array of luxurious features. The gourmet kitchen is a culinary dream, featuring high-end KitchenAid appliances, gorgeous granite countertops, custom cabinetry, and an accordion window wall that seamlessly connects indoor and outdoor living. Step into your private backyard oasis, where lush landscaping sets the stage for relaxation and entertainment. A sunken Ramada offers a cozy fireplace, lounge area, and a built-in BBQ, all overlooking a spectacular swimming pool with multiple water and fire features. An expansive putting green and an in-ground trampoline elevate this outdoor haven, making it truly one-of-a-kind. Designed for the most discerning buyers, this home is destined to be the envy of family, friends, and guests. Experience the pinnacle of luxury livingschedule your private tour of this incredible Verrado paradise today.

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581 Windspirit Circle Prescott, AZ 86303

$1,600,000

6 Beds

5 Baths

6,716 SqFt

Status Active

MLS # 6778199

Property Type Single Family Residence

Price Type --

Stunning home sitting on top of a bluff in the Ranch at Prescott. Views as far as the eye can see. Tons of main level living with a new kitchen with custom cabinets, high level granite, stainless steel appliances and a great room that includes plenty of space for a large dining table, two sided fireplace and multiple decks to enjoy the views. Spacious living room with a conversation pit and fireplace. Huge master bedroom with lovely views, two huge closets, large bathroom and a new custom shower with two shower heads. Two separate offices. Extra bedrooms on the lower level, theater room, toms of extra storage and guest quarters with a separate entrance.

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11428 N 85th Street Scottsdale, AZ 85260

$1,600,000

3 Beds

3 Baths

2,156 SqFt

Status Active Under Contract

MLS # 6776677

Property Type Single Family Residence

Price Type --

Located in a coveted neighborhood in the heart of Scottsdale, this property offers a prime investment opportunity on spacious 36,000+ SQFT lot. The surrounding area is home to several successful developments, making it perfect for your next project. Don't miss out on this opportunity - come take a look today!

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6221 E Cielo Run Cave Creek, AZ 85331

$1,600,000

3 Beds

3 Baths

3,164 SqFt

Status Active Under Contract

MLS # 6755148

Property Type Single Family Residence

Price Type --

Experience ultimate entertaining in this exclusive 4.509-acre estate backing to Tonto National Forest. The updated kitchen, stylishly modernized 5 years ago, seamlessly connects to an expansive indoor/outdoor living area, ideal for hosting gatherings. Revel in luxury with a $50,000 cooled wine room, a 27,000-gallon pool, and a 6-person jacuzzi. The open space and privacy of the property enhance your celebrations, while the unobstructed night sky offers breathtaking views of the Little Dipper and shooting stars. Enjoy the serenity and grandeur of this unique, secluded retreat.

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5424 E Crocus Drive Scottsdale, AZ 85254

$1,600,000

5 Beds

4 Baths

3,315 SqFt

Status Active Under Contract

MLS # 6772808

Property Type Single Family Residence

Price Type --

Elegant Living on a Coveted 85254 Street. The Ultimate Family Oasis. Discover Scottsdale living at its finest on this expansive 34,216-square-foot lot in one of the most sought-after neighborhoods in 85254. This stunning property features 5 spacious bedrooms and 4 bathrooms, offering a blend of elegance and comfort for family living and entertaining. Perfect for those who love the indoor-outdoor lifestyle, the oversized lot boasts an array of recreational features, including a dedicated sport court for pickleball, tennis or basketball, a walking, biking, and scooter path for outdoor enjoyment, and a sparkling swimming pool ideal for Arizona's sunny days. Multiple sitting areas for families and friends to gather and enjoy life together. With an RV gate, you'll have ample space for storing your toys and adventure gear. Situated just moments away from Scottsdale Christian Academy and the highly acclaimed Paradise Valley School District, this home is perfect for families seeking both privacy and convenience. With dining, shopping, and entertainment options in every direction, including Kierland, and the Scottsdale Quarter as well as easy access to SR 51 and Loop 101, you're never far from the best that Scottsdale has to offer. This remarkable home is not just a place to liveit's a backdrop for creating lifelong family memories.

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12593 E Desert Cove Avenue Scottsdale, AZ 85259

$1,600,000

4 Beds

2.5 Baths

3,356 SqFt

Status Active

MLS # 6750510

Property Type Single Family Residence

Price Type --

Welcome Home to this completely remodeled home in Sierra Foothills! Highly desired gated community with gorgeous mountain views. Step inside to the open concept layout featuring high ceilings with crown molding throughout. Gorgeous finishes were selected including wood look tile floors, white double stacked cabinets, quartzite countertops, marble showers and Restoration Hardware bathrooms vanities. This home also has an office with AV storage closet and media/theater room featuring a wet bar. A backyard that dreams are made of with waterfall featured pool, misting system throughout, luscious vegetation, outdoor kitchen, firepit, and grassy area. Located near BASIS, Mayo Clinic, hiking trails, golfing, this Arizona home can't be beat!

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3623 E Arabian Drive Gilbert, AZ 85296

$1,600,000

5 Beds

3.5 Baths

4,801 SqFt

Status Active

MLS # 6769068

Property Type Single Family Residence

Price Type --

Luxury retreat in Morrison Ranch! This energy-efficient 5-bed, 3.5-bath home features Tesla solar panels, power wall batteries, and an EV charger. The gourmet kitchen boasts Wolf and Subzero appliances, granite counters, and a walk-in pantry. Enjoy wood flooring, upgraded carpet, plantation shutters, and smart fans/blinds throughout. Stay connected with Cat 6 wiring, 8 speaker zones, and hard-wired security cameras. The heated/chilled pool and spa with waterfall, scuppers, and rain sheer, extended patio, gazebo, and gas fire pit are perfect for relaxing year round. Laundry room is equipped with sink, cabinets, washer/dryer. Garage includes service door, cabinets & epoxy floors. Located by the greenbelt and surrounded by single-story homes for added privacy. This home is truly a must-see! Continue upstairs and into the charming loft w/built-in bookshelves. End your busy day in the primary bedroom, showcasing a walk-in closet and a lavish ensuite w/dual vanities. Don't forget about the large den w/outdoor access, perfect for an office. Lastly, the wonderful backyard includes a covered patio, a lovely gazebo, fire pit, and a sparkling blue pool/spa combo. This is the opportunity of a lifetime, hurry and act now!

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5225 E Whitton Avenue Phoenix, AZ 85018

$1,600,000

4 Beds

3 Baths

2,559 SqFt

Status Active Under Contract

MLS # 6767461

Property Type Single Family Residence

Price Type --

Quintessential Arcadia ranch home tucked on quiet street. Perfect remodel opportunity on a large lot with new builds selling $3.5 million and above in surrounding cul de sac. With a large front and back yard this 4 bedroom, 3 bathroom home is the perfect family home. Light and bright open concept living, breakfast nook, and kitchen. With a wall of French doors, chef's kitchen includes custom cabinets, quartz counters, and eat-up kitchen island. Entertain family and friends in the backyard's custom pool with expanded pool deck, ramada, built-in BBQ, and sprawling grass yard. Split floor plan, bonus playroom/office and NY brownstone city feel in a sprawling Arcadia lot. Lots of upside and multiple offers anticipated. Walk or bike on the canal or drive minutes to reach Phoenix's top resorts, golf, hiking, dining, and shopping.

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