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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Sort by: Select Price, Low to High Price, High to Low Newer Listings First Older Listings First Open House Date

13630 W Peoria Avenue Surprise, AZ 85379

$1,550,000

4 Beds

5.5 Baths

7,249 SqFt

Status Active

MLS # 6746555

Property Type Single Family Residence

Price Type --

Presenting the legendary 7,200 square foot mansion on Peoria Ave that has graced the city of Surprise since the mid 1990's. The grand foyer greets you with an impressive spiral staircase with formal living and dining areas to each side. The heart of the home is the spacious great room with a cozy fireplace and gourmet kitchen. The spacious owner's suite includes dual walk-in closets, a private living room, jetted soaking tub, walk-in shower, dual sinks and a secret storage room. This impressive home also includes a massive entertainment room, two en-suite guest bedrooms, an apartment with private entrance, a separate guest home with a full kitchen, a den, laundry both upstairs and downstairs and oversized 6 car garage.

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2968 E Posey Court Payson, AZ 85541

$1,550,000

3 Beds

3 Baths

3,048 SqFt

Status Active

MLS # 6749066

Property Type Single Family Residence

Price Type --

This 3,480sf, Pioneer Log Home, sitting on just over 1 acre in a private gated community, will take your breath away! Constructed of Massive Western Cedar Logs, carefully sited into the natural surroundings with a year round creek at the rear of the home has unmatched beauty! This home features a 2 way wood burning fireplace that heats both the large great room and spacious master bedroom, Small pond and waterfall feature in great room, big kitchen with gas cook top, kitchen island, breakfast bar, and giant laundry area/ mud room, and fire suppression system. Walk upstairs to find another living area, two huge bedrooms, and giant jacuzzi tub with double sinks and walk in shower! Bring the outdoors in with floor to ceiling windows, and great natural lighting. There is 5,000 Square Feet Under Roof which includes the covered porches, breezeway and the garage (provided by the owner).

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18129 W Rancho Drive Unit 32 Litchfield Park, AZ 85340

$1,550,000

4 Beds

4.5 Baths

3,715 SqFt

Status Active

MLS # 6763417

Property Type Single Family Residence

Price Type --

Stunning Custom Home Coming Soon!! Estimated completion in early 2025, with options still available to personalize the interior finishes. As well as options to choose your fully landscaped front and back yard! This home will feature luxurious craftsmanship and custom details throughout. Your family & friends will enjoy the stunning pool. Reach out for a detailed PDF of the premium features included!

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1484 Eagle Crest Drive Prescott, AZ 86301

$1,550,000

4 Beds

4 Baths

4,800 SqFt

Status Active

MLS # 6764731

Property Type Single Family Residence

Price Type --

Experience unparalleled luxury & breathtaking views in this stunning home. Floor-to-ceiling windows & beamed ceilings create an open, airy atmosphere, enhanced by a seamless floor plan & elevator. The spacious living room with a cozy fireplace flows into a chef's kitchen w/ granite counters, SS appliances, a bar, double oven, & formal dining. The primary bedroom offers outdoor access & a lavish bathroom w/ a walk-in shower and dual heads. Entertain w/ a game room & bar, plus an office & in-law suite with kitchenette. A car lover's dream 5-car garage awaits. This space is designed to captivate &cater to the needs of any automotive or RV enthusiast. Step outside to a landscaped backyard w/ a fireplace & pergola, backing serene reservation land.

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41626 N 108th Street Scottsdale, AZ 85262

$1,550,000

2 Beds

2.5 Baths

2,922 SqFt

Status Active

MLS # 6769055

Property Type Single Family Residence

Price Type --

Welcome to the Desert Mountain community in N. Scottsdale. This home has available the full golf membership to the Club. Must get pre approved for membership, but there is no waiting. 2 master bedroom suites. Upgrades include Granite countertops, Wolf appliances, Mountain views to the north and twinkling lights to the south. Large outdoor Spa, The family room can be converted to be a 3rd bedroom if needed. Perfect lock and leave home ready for move in!

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28640 N 76th Street Scottsdale, AZ 85266

$1,550,000

4 Beds

3 Baths

3,362 SqFt

Status Active

MLS # 6775775

Property Type Single Family Residence

Price Type --

Nestled in the heart of North Scottsdale, this expansive 2.5-acre estate offers the perfect blend of luxury, space, and potential for customization. Set against a backdrop of the stunning desert landscape, the territorial-style home showcases the timeless beauty of Saltillo tile floors, bringing warmth and character to every room. With 4 spacious bedrooms and a charming courtyard entry, this home welcomes you with a serene ambiance and elegant design. Ample space surrounds the property, making it ideal for the discerning buyer looking to create a custom equestrian setup, build additional garages, or add sport courts to enhance the estate's recreational offerings. The centerpiece of the backyard is a large, sparkling pool, complete with a slide and diving board, perfect for family fun and entertaining. For those seeking panoramic views of Scottsdale's breathtaking sunsets, the rooftop deck offers an unbeatable vantage point.

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6658 E Whispering Mesquite Trail Scottsdale, AZ 85266

$1,550,000

3 Beds

2.5 Baths

3,009 SqFt

Status Active

MLS # 6776179

Property Type Single Family Residence

Price Type --

Welcome home to this serene sanctuary on Whispering Mesquite Trail in the highly sought-after Terravita neighborhood. Located on a spacious lot with no rear neighbors, this pristinely landscaped home comes with breathtaking mountain views! Head inside you will instantly notice the soaring ceilings, bright color scheme, plantation shutters and amazing natural light streaming throughout the house. The heart of the home boasts an open concept kitchen and family room space. The newly remodeled kitchen has an oversized island with extra storage as well as, upgraded SS GE Cafe Series appliances, recessed lighting and under cabinet lighting . The family room has a cozy gas fireplace with a clear view of the backyard. ((CONTINUED)) The master suite was made with relaxation in mind. The spacious suite has a recently remodeled en suite that doubles as a dressing room. The en suite has a walk in shower with an extra wide, zero grade entrance, double sinks with ample storage space and a vanity section. This home boasts two additional multi use spaces. Whether you need a den space, office area or prefer a formal sitting room and dining space, you have to option to create the home perfect for you! Head outside to your backyard desert oasis. The low maintenance area will be a prime location to watch a breathtaking Arizona sunset.

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6969 E Bobwhite Way Scottsdale, AZ 85266

$1,550,000

4 Beds

2.5 Baths

3,237 SqFt

Status Active

MLS # 6769840

Property Type Single Family Residence

Price Type --

Sitting on an oversized tranquil lot, the courtyard with fountain and recently painted exterior welcome you home. As you enter, you will find fresh updates throughout including three renovated bathrooms and kitchen updates including granite countertops. The oversized center island is perfect for cooking and entertaining, as the kitchen opens to a family room with gas fireplace. The primary suite offers an escape boasting recently installed carpet and French doors that lead to a resort style backyard complete with refinished pebble tec pool. Enjoy a recently installed roof and HVAC, as well. Desirable location near shopping, dining and with easy access to the 101. Top rated Cave Creek schools. Relax and unwind in your desert oasis, perfect for Scottsdale living!

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20612 W Colter Street Buckeye, AZ 85396

New

$1,550,000

3 Beds

3.5 Baths

3,383 SqFt

Status Active

MLS # 6775381

Property Type Single Family Residence

Price Type --

Located in the exclusive Victory at Verrado 55+ community, this luxurious David Weekley-built home offers a serene golf course setting with mountain and city light views. Spanning 3,383 sq ft, this 3-bedroom, 3.5-bath home boasts tons of custom upgrades, and the highly desired Fruition flooplan, includes two outdoor seating areas and a private pool. Enjoy resort-style living with access to Victory's incredible amenities: state-of-the-art fitness facilities, pools, and the renowned Victory Golf Course. The vibrant, active lifestyle in Verrado makes this home an entertainer's dream and a peaceful retreat.

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22770 Fox Ranch Road Munds Park, AZ 86017

$1,550,000

3 Beds

2.5 Baths

2,416 SqFt

Status Active

MLS # 6662555

Property Type Single Family Residence

Price Type --

All reasonable offers considered! Act fast to secure with built in equity since its listed below 3 appraisals! Open to investor offers! Flexible Financing Available Seller willing to carry with sizeable down and Interest rates tailored to fit your needs. Peace & Quiet on 11+ Acres Perfect for Short Term Rental, running a business, hobby farm, or simply embracing tranquility. Price Lowered - Owner Extremely Motivated! Over 300k in Equity immediately! ACT NOW NO HOA, 11.98 Acres Bordering the majestic Coconino National Forest, this property offers a rare opportunity to live in harmony with nature while enjoying Munds Park amenities just a stone's throw away. -Custom Home Features Stainless appliances, wood stove, entertainers bar, spacious bedrooms, large mudroom, and more! Available fully furnished! -Peace of Mind Amenities Equipped with Briggs & Stratton generator, septic system, and shared well for continuous comfort. -Equestrian Paradise Full arena, round pen, cross-fenced areas, shelters, and out-buildings provide everything you need to care for your horses. A haven for both horse and rider! -Four-Season Comfort Mild climate ensures year-round enjoyment of your outdoor pursuits. Don't miss out on this once-in-a-lifetime opportunity to own your slice

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9363 E Superstition Mountain Drive Gold Canyon, AZ 85118

$1,550,000

3 Beds

3 Baths

3,497 SqFt

Status Active

MLS # 6671612

Property Type Single Family Residence

Price Type --

SPECTACULAR Mountain and Desert views. This open floor plan is an entertainers DREAM for both inside/outside living! Built in 2023, you will love this exquisitely designed estate with its earth tone palette. Gourmet kitchen fit for a chef with abundant cabinet space with a charging station, gas range with pot filler, breakfast area and large pantry. Indoor/outdoor bar. Huge master suite on east wing features picturesque views, MASSIVE his and her closets and a COLOSSAL walk in shower. Separate entry bedroom with kitchen amenities perfect for visitors or to be used as a mother in law suite. Exercise/hobby room easily could be converted to 4th bedroom. Dramatic and tranquil front courtyard paired with the backyard bide for a year round OASIS. This gated golf course community is a MUST SEE

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33101 N 82nd Street Scottsdale, AZ 85266

$1,550,000

5 Beds

3.5 Baths

4,026 SqFt

Status Active

MLS # 6713004

Property Type Single Family Residence

Price Type --

Your N. Scottsdale oasis can be found here! This stunning 5 bedroom home sits on just over an acre with expansive desert views seen from the covered balcony off the incredible primary suite featuring its own sitting room & 2 walk-in closets. Enjoy the propane heated sparkling pool & spa with true privacy in your dream backyard due to lush and mature landscaping on this corner lot! No HOA here- currently a successful vacation rental & great opportunity to take over if interested. The pride of ownership, extensive upgrades & high attention to detail the owners have had in maintaining this property has prevented the typical ''wear & tear'' of STR. Solar is OWNED & a huge asset for enjoying this property however you like (electric bills & list of major property upgrades in documents tab)!

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