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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1681 Black Canyon Trail Heber, AZ 85928

$1,490,000

8 Beds

8 Baths

4,662 SqFt

Status Active

MLS # 6752440

Property Type Single Family Residence

Price Type --

LOCATION! CUSTOM cabin on 4+ acres with amazing mountain views, no traffic, custom finishes throughout, 8 bedroom suites so each bedroom has a private en-suite bathroom, custom showers and custom vanities! Private shared well and this cabin has a separate 2500 gallon water tank, heated bathroom floors, Upgraded AC systems, custom metal shake roof, exterior finishes are hardie board so virtually maintenance free, custom wood floors, custom designed finishes throughout, vaulted ceilings, large deck with fireplace, detached garage, instant hot water system with multiple water heaters, custom kitchen cabinets with granite counter-tops, central vacuum system, dual side by side fridge/freezers and so much more! This cabin is priced for a quick sell! Seller may carry mortgage with good offer!

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10595 S State Route 69 -- Mayer, AZ 86333

$1,490,000

3 Beds

5 Baths

4,666 SqFt

Status Active

MLS # 6752671

Property Type Single Family Residence

Price Type --

Welcome to your dream horse training facility!! Positioned on 12 sprawling acres of picturesque landscape in Mayer, AZ. This exceptional property combines western life with luxury living! A grand 4,666 square foot home features 3 spacious bedrooms and a versatile loft. Enjoy the convenience of a dedicated laundry room and a well-appointed office. The two master bathrooms offer opulent amenities, including tile finishes, a walk-in shower, a classic clawfoot tub, and a soothing jacuzzi tub. The expansive kitchen boasts upgraded appliances, granite countertops, and ample space for culinary creativity. The great room is a showstopper with its floor-to-ceiling rock fireplace, creating a warm and inviting atmosphere. The property includes a 4,000 square foot horse barn with 10 stalls, a wash rack, and a tack room with a sink and refrigerator, ensuring top-notch care for your horses. The facility also features four large turnouts with shade structures, a cutting pen, a round pen, and a hot walker. A hay shed provides convenient storage, while 8 RV hookups offer accommodation for guests or staff. Enjoy lush green pastures, mature trees, and the peaceful sound of the seasonal creek flowing through the property. The front 2 acres of the property are zoned commercial!! Benefit from low utility costs with a septic tank, and 2 private wells!!! There are 3 heat pump units, a water softner unit and reverse osmosis. The home includes a 3-car garage, and an additional storage shed with its own porch, perfect for hobbies or extra storage needs. This property is more than just a home; it's a complete equestrian paradise offering luxury, functionality, and breathtaking beauty. Don't miss the chance to make this exceptional estate your own.

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2500 Lupine Lane Wickenburg, AZ 85390

$1,490,000

4 Beds

3.5 Baths

4,205 SqFt

Status Active

MLS # 6768049

Property Type Single Family Residence

Price Type --

Beautiful truly custom home abutting airport real estate, providing never ending views of the Bradshaws! Each room was independently designed for a completely different ascetic, yet the overall feel still has cohesion. With two owner suites split from one another by the parlor as well as from the other two bedrooms, this home is perfect for any entertaining scenario. Each owner's suite closet is so intricately designed, bedroom furniture may be unnecessary. The parlor has a pass-through fireplace to the main living area which makes the room feel connected yet isolated for privacy. The open concept living space enjoys an eat up bar, wonderful living space, formal dining as well as a quaint breakfast area. No expense was spared in this gourmet kitchen and walk in pantry!

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2946 N Lodgepole Road Overgaard, AZ 85933

$1,490,000

4 Beds

4 Baths

5,088 SqFt

Status Active

MLS # 6773690

Property Type Single Family Residence

Price Type --

Experience the ultimate in luxury living at this magnificent hilltop retreat! With expansive decks offering breathtaking views, this custom-built home is a true gem. Step inside to find wide wood plank hickory floors that lead you to a spacious living room. The chef's kitchen is a dream, featuringgorgeous cabinetry, a Sub-Zero fridge, Wolf gas double oven, large slab granite counters, walk in pantry & a cozy sitting area. Every bedroom boasts an ensuite, with one conveniently located on the main level as well as the laundry. Ascend the stunning staircase to discover a huge family room complete with a fireplace & split floor plan. Two additional bedrooms, along with a lavish primary suite that includes its own fireplace and private deck and attached office with mini kitchen and balcony.

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263 W Malibu Drive Chandler, AZ 85248

$1,490,000

5 Beds

4.5 Baths

5,735 SqFt

Status Active

MLS # 6681125

Property Type Single Family Residence

Price Type --

Welcome to the captivating 5-bedroom, 4.5-bathroom house located in the desirable Fulton Ranch, Aegean Cove subdivision in Chandler. This spacious home spans an impressive 5,735 square feet and offers a multitude of possibilities for comfortable living. With its generous layout, gourmet kitchen, spacious living areas and bedrooms, this property boasts a basement, providing additional space for various activities. The house features a large backyard, perfect for outdoor gatherings, gardening, or simply enjoying the beautiful Arizona weather. Whether you are looking for room to grow or desire ample space for entertaining, this house offers the perfect canvas to create your dream home. Don't miss out on the opportunity to make this captivating 5-bedroom, 4.5-bathroom house in Chandler your own. Close to freeway and shopping.

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5023 E Lucia Drive Cave Creek, AZ 85331

$1,490,000

5 Beds

4 Baths

4,587 SqFt

Status Active

MLS # 6764284

Property Type Single Family Residence

Price Type --

This beautifully partly-renovated & extremely well maintained semi-custom executive / family home exudes quality craftsmanship at every turn. The impeccable craftsmanship and high-end finishes immediately catch your eye, showcased by the 20-foot ceilings in the living room & entryway. The first floor Wood & tile floors. The kitchen is a haven for culinary enthusiasts, equipped with a Wolf cook top, SS appliances , including a built in ice maker & beverage fridge, all centered around a sprawling island that comfortably seats six...... A butler pantry & additional full pantry adds convenience, accommodating all your small kitchen gadgets. Downstairs, you'll find a bedroom with a bath. A large laundry room awaits, complete with additional access to the yard. Ascending upstairs, you're greeted by a generous loft area, perfect for a home office, fitness room, or children's play area. The master suite indulges with an all stone bathroom, including double sinks, a walk in shower, and a soaking tub. Her & his master closet are adorned with exquisite built-ins to assist in staying organized. Bedroom 3 boasts an ensuite bathroom with a shower/tub combination, while bedrooms 4 and 5 share a bathroom featuring dual sinks and a tub/shower combo The outdoor space forms a lush oasis, featuring artificial turf, a putting green, an expansive travertine patio (both covered and non-covered), and pool deck housing a sparkling solar heated pool and a built in spa. In addition, you have a fire pit, built in bbq & outdoor mist system. In this truly exceptional home, you'll find it hard to ever want to depart from this serene haven. Mechanically you have 2 brand new HVAC systems, newer water heater and water softener. This home is better than a new build and completely move in ready! Plus NO HOA!

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3413 E Equestrian Trail Phoenix, AZ 85044

$1,490,000

6 Beds

4 Baths

5,769 SqFt

Status Active

MLS # 6765363

Property Type Single Family Residence

Price Type --

Step inside this recently renovated estate located in the sought after Ahwatukee Custom Estates community. Everything you need on one property including large pool and custom basketball court sitting on a large half acre lot with three car garage. Home consists of 6 bedrooms with two additional bonus rooms acting as fitness room and office room. 2 of the 6 bedrooms are located in the spacious basement that was also renovated and contains kitchen and living room, great for the ideal man cave or additional living space for guests (basement photos coming soon). High ceilings and grand layout make this home feel larger than it truly is.

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1004 E Tempe Drive Tempe, AZ 85281

$1,490,000

6 Beds

4.5 Baths

4,186 SqFt

Status Active

MLS # 6774897

Property Type Single Family Residence

Price Type --

Perfect opportunity for luxury living or investment property in the heart of Tempe. Where luxury meets convenience in this stunning 6-bedroom, 4.5-bathroom home boasts an impressive 4,186 square feet of living space with plenty of space to entertain, 2 master suites and 2 kitchens. Sold fully furnished and move-in ready. Step outside and be greeted by a private paradise. The meticulously landscaped outdoor space features a brand new sparkling pool, perfect for those scorching Arizona days or heat it up during the cold season. But why stop there? Ascend to the rooftop deck and take in breathtaking views of the surrounding area - it's the ideal spot for stargazing or entertaining friends. Location is key, and this home delivers. Just minutes away from ASU, Tempe Town Lake, and Scottsdale, you'll find endless opportunities for recreation. Currently run as a successful AirBnb, this is an investors dream. Could be rented as is or converted to 2 separate housing units for additional revenue as there are already separate entrances, seperate kitchens, laundry's, etc. so you would just need close in one small wall upstairs. Since it comes fully furnished it could be up and running in no time. Owner can provide proof of rental income upon request.

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2325 N 64th Street Scottsdale, AZ 85257

$1,488,000

4 Beds

3 Baths

2,637 SqFt

Status Active

MLS # 6733867

Property Type Single Family Residence

Price Type --

PRICED BELOW APPRAISAL! Great value. Experience modern luxury in this newly constructed contemporary masterpiece located near Old Town Scottsdale. Custom designed with high-end finishes throughout, this home offers the ultimate in sophisticated living. The heart of the home is a chef's dream kitchen featuring Fisher and Paykel appliances, perfect for culinary enthusiasts and entertainers alike. Upstairs, the primary suite exudes comfort and elegance, while an entertaining loft boasts stunning mountain views and opens onto a second-story deck through expansive glass doors. On the first floor, a second en suite guest room provides privacy and comfort for visitors. The backyard is a sanctuary with a Thermador swim spa, ideal for relaxation and fitness. Swim against the jets for training or simply relax. This home combines contemporary design with luxurious amenities, offering a lifestyle of comfort and sophistication.

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2993 S Tourmaline Drive Unit 34 Flagstaff, AZ 86005

$1,485,000

3 Beds

3.5 Baths

1,860 SqFt

Status Active

MLS # 6745060

Property Type Townhouse

Price Type --

This highly desirable, luxury condo offers an open floor plan with no steps, a private entry guest Casita, and a spacious walled-in wrap-around patio. Built in 2023, this home is packed with upscale features, including a Sub-Zero side-by-side refrigerator, Wolf oven/range, and built-in microwave. Enjoy Quartz countertops, a 7' kitchen island with bar seating, and a Tongue and Groove ceiling. The custom-built wet bar features a Sub-Zero wine refrigerator and copper bar sink. Additional luxuries include glass-fronted cabinets, an extended stone fireplace wall with a linear gas fireplace, and automated window coverings throughout, including blackout shades in the primary bedroom. Note: Pine Canyon membership is separate and not included. Over $76,000 Additional Upgrades Include: Kitchen dry bar in niche, including a subzero wine refrigerator with matching cabinets and under cabinet lighting. Upgraded Kitchen marble countertops. Fireplace cabinetry with floating shelves. Beams added in living room. Custom chandeliers throughout home. Garage epoxy flooring. Dynomat material between master/shared wall for noise cancelation. Custom built ins in kitchen cabinetry and drawers. Motorized power shades throughout home with blackout. Patio railing with gate that isn't included with units.

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8733 E Russell Street Mesa, AZ 85207

$1,485,000

5 Beds

4.5 Baths

4,325 SqFt

Status Active

MLS # 6763387

Property Type Single Family Residence

Price Type --

Desert Upland living at it's finest, with unparalleled city light and mountain views from all windows and wrap around balconies! With No HOA, this beautiful home sits on 1.2 acres and is only minutes from Saguaro Lake and Usery Mountain Regional Park. This home features 5 bedrooms ( 2 master retreats for multigenerational living...one upstairs and one downstairs), 4.5 bath, great room floorplan and 4 car garage (extended and over-height). High end finishes include extensive travertine flooring, travertine bathroom vanities and surrounds, marble tile jacuzzi tubs in both master bedrooms, cherry 42 inch staggered cabinetry with crown molding in kitchen, new Revati undermount, stainless steel workstation sink, new roof coating, new ac on east side, new Mohawk Smart Strand Carpet, new smart garage door openers, new 50 gal energy star water heaters, freshly painted exterior, Vivint smart home, gourmet kitchen with double ovens and built in refrigerator, mahogany floors in downstairs master bedroom, double sided fireplace in master bedroom, fireplace in great room and more! The wrap around balcony allows for a jacuzzi with access to electrical and water already in place. The lot also accommodates horses and RV parking. Close to hiking, restaurants, 25 min to Sky Harbor Int'l Airport and downtown Scottsdale you won't want to miss out on this amazing home!

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11430 E Palomino Road Scottsdale, AZ 85259

$1,485,000

3 Beds

2.5 Baths

2,694 SqFt

Status Active

MLS # 6767594

Property Type Single Family Residence

Price Type --

Welcome to Stonegate, one of Scottsdale's most sought after guard gated communities. Ideally located just minutes from shopping, golf, hiking, freeway access, Mayo Clinic. Perfect for full or part time residents. Resort style amenities include tennis, pickle ball, an olympic size pool, children's play area and walking trails. This light and bright home has been completely remodeled w/ designer finishes throughout which provides a modern yet comfortable vibe. The laundry room even feels like a sanctuary! Located on an interior cul-de-sac lot with mature landscaping and privacy. Walls of glass provide a beautiful transition from indoor- outdoor living where you can relax under the large covered patio or enjoy the resort style pool.Upgraded garage, new roof, new AC units etc.Truly a must see

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