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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7475 E Timberlane Court Scottsdale, AZ 85258

$1,495,000

3 Beds

2.5 Baths

2,502 SqFt

Status Active

MLS # 6783120

Property Type Single Family Residence

Price Type --

Designed to the Nines in the Eastwood enclave of Gainey Ranch! Step through the beautiful IRON GLASS front door to discover a COMPLETE REMODEL THAT BECKONS WARMTH AND LUXURY. A gorgeous kitchen features a stunning textural backsplash, wood accents, large entertainer's island, soft-close SOLLID Cabinetry and quartzite counters. Multiple living spaces marry inclusivity while offering the right amount of separation between rooms. Details envelop this home through designer lighting, spa-like baths with marble tile and statement-making hardware such as crystal doorknobs throughout. Highly upgraded flooring, windows, window treatments and doors accentuate this knockout turnkey home that will appeal to those looking at lock and leaves or the 3 C's schools. Gainey Ranch, and the surrounding McCormick Ranch area, offers convenient and fabulous restaurants, parks, and shopping. Come experience this exceptional home in this serene neighborhood.

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7016 E Grand View Lane Gold Canyon, AZ 85119

$1,495,000

4 Beds

3.5 Baths

3,821 SqFt

Status Active

MLS # 6723961

Property Type Single Family Residence

Price Type --

MOUNTAIN VIEWS in this desert paradise custom built for the entertainer, cook, or outdoor enthusiast (a quick hike to the Broadway Trailhead)! Enjoy rooftop sunsets, relax in your soaking tub next to the two-way fireplace, take a shower in the moonlight, or kick back with a cocktail from the built in wet bar. Guests will love the huge casita with full bath or secondary owner suite, and the yard is built to enjoy w/ outdoor fireplace and 5 covered patios! Gourmet kitchen w/ 2 dishwashers, 2 sinks, Wolf Gas French Cooktop, 2 wall ovens, Sub Zero Frig & Freezer Drawers, Built in Coffee / Espresso, cast iron farmhouse sink, & massive island. Southwest style handmade Mana Pottery tiles, Travertine, 2x6 construction, spray foam attic, fresh exterior paint! Huge lot with room to customize!

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1410 W Sandpiper Drive Gilbert, AZ 85233

$1,495,000

5 Beds

3.5 Baths

4,172 SqFt

Status Active

MLS # 6733283

Property Type Single Family Residence

Price Type --

Stunning luxury lakefront home with private dock! SELLER FINANCING AVAILABLE. AVAILABLE FURNISHED! This property offers luxury living with breathtaking views. Nestled on a private cul-de-sac lot, this expansive residence boasts nearly 4,200 sq. ft and is one of the largest lake frontage lots in the area. Additionally, you'll find an extended patio, large private balcony, expansive primary suite, pool with spa, gourmet kitchen, huge windows, and breathtaking vaulted ceilings. All of this while being just minutes from Downtown Gilbert - The Heritage District. This is a must see as homes like this do not come on the market often!

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3009 S Tourmaline Drive Unit 22 Flagstaff, AZ 86005

$1,495,000

3 Beds

3.5 Baths

1,891 SqFt

Status Active

MLS # 6742480

Property Type Apartment

Price Type --

Experience luxury living in the prestigious Pine Canyon Golf Community with this stunning single-level condo. This highly upgraded new build boasts 2 bedrooms and 2.5 bathrooms, accompanied by a charming 1-bedroom, 1-bathroom casita, perfect for guests, office or private retreats. The home is exquisitely upgraded throughout, offering elegance and modern conveniences at every turn. Enjoy serene, filtered views of the driving range from the beautifully landscaped outdoor spaces, perfect for relaxation or entertaining. The attached 2-car garage provides ample storage and convenience. Nestled within Pine Canyon's sought-after community, this residence is a rare gem that combines comfort, style, and a prime location. See attached upgrade list.

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3181 E Berridge Lane Phoenix, AZ 85016

$1,495,000

3 Beds

3.5 Baths

2,745 SqFt

Status Active

MLS # 6762515

Property Type Single Family Residence

Price Type --

Experience luxury resort living at its finest at the exclusive 24/7 guard-gated community of Biltmore Greens! This 3BR/3.5 BA w/2 car garage 2745 sqft split floorplan home is adorned w/soaring ceilings & wood beam accents which provide an appealing flow from the formal living & dining area to the kitchen & family room. Duel Primary suites w/walk in closets. Remodeled kitchen with granite & stainless-steel appliances. Remodeled Baths. Most of the rooms wrap around a meticulously manicured patio w/fountain & spa. Take the spiral staircase to the observation deck where there are breathtaking 360-degree views of the city & mountains. Ideal for entertaining, this lock & leave house is in a Prime location just minutes from the Historic Biltmore Hotel, Golf Courses, Shopping & 5-star restaurants

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34508 N 99th Way Scottsdale, AZ 85262

$1,495,000

5 Beds

3.5 Baths

3,712 SqFt

Status Active

MLS # 6699305

Property Type Single Family Residence

Price Type --

A Contemporary Home in the Prestigious Gated Legend Trail. Located on the 13th hole of the Golf Course. While sunning at the new pool and spa with water feature or just taking in the sunset views, this home is a stunner! The high ceilings and large expansive floor to ceiling windows capture the gorgeous views at the living room, great room and owner's suite; all overlooking the backyard and perfect for entertaining. This spacious home with private owner's suite and spa-like bath with floating lit vanity cabinetry, beautifully tiled glass shower, separate free standing soaking tub and 2 walk-in closets is fabulous! Also, an additional ensuite bedroom can easily transform into a casita. Legend Trails is among Top 100 Facilities by Golf Magazine/Best Places to Play by Golf Digest Magazine

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1822 E Washington Avenue Gilbert, AZ 85234

$1,495,000

4 Beds

3 Baths

3,596 SqFt

Status Active Under Contract

MLS # 6765461

Property Type Single Family Residence

Price Type --

Prepare to be amazed! This beautifully FULLY remodeled home is located in one of Gilbert's top desirable neighborhoods-Circle G Ranches. This home is situated on a corner lot with nearly an acre of irrigated land. Whether you are dreaming of building a casita, a shop, a place to store all your toys, or even a sports court, with no HOA the possibilities are endless. Do you love to have space to entertain? If so, this homes layout is for you! Offering a family room and not just one, but two living rooms! And if this home couldn't get any better, it is located just minutes from downtown Gilbert!

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33101 N 82nd Street Scottsdale, AZ 85266

$1,495,000

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! The pride of ownership, extensive upgrades & high attention to detail the owners have had in maintaining this property truly shows! No HOA - 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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19617 N 39th Drive Glendale, AZ 85308

$1,495,000

4 Beds

3.5 Baths

4,024 SqFt

Status Active

MLS # 6733689

Property Type Single Family Residence

Price Type --

NEW CONSTRUCTION! Welcome to Vision Hill Estates. Single-level, perfect for creating unforgettable memories. 4 spacious bedrooms, 3.5 luxurious baths, and a 3-car garage. offering ample space for family and guests. The large lot, just under half an acre, ensures privacy and space to enjoy. Step inside to discover a large, open gourmet kitchen with high-end finishes, a walk-in pantry plus an additional room for extra storage. Conveniently located near the 101, 51, and 17 freeways, Vision Hills Estates provides easy commutes throughout the Valley of the Sun. The large backyard is ready for you to create your own private oasis. Don't miss this opportunity to make this stunning home your own in this exclusive community. Come and experience a blend of luxury and convenience. Energy Efficient home built with 2x6 construction and a 400 amp electrical panel.

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3018 N 50th Street Phoenix, AZ 85018

$1,495,000

5 Beds

4.5 Baths

3,819 SqFt

Status Active

MLS # 6739740

Property Type Single Family Residence

Price Type --

Experience the best of Arcadia living - walking distance to the greenbelt, OHSO, all of Arcadia's best amenities. This home features 5 bedrooms, 4.5 bathrooms, and over 3,800 square feet of luxurious living space. The gourmet kitchen boasts slab granite counters, an island, an eat-in area, and opens to a large family room. The primary suite includes a private balcony with Camelback Mountain views, dual walk-in closets, a jetted tub, and a walk-in shower. With two primary suites, one on each floor, the home offers flexibility and privacy. Enjoy high ceilings, formal living and dining areas, a loft, and covered patios in front and back. The property includes a three-car tandem garage and ample sized backyard. Situated on a cul-de-sac street and in the popular Arcadia Osborn neighborhood.

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13778 E Charter Oak Drive Scottsdale, AZ 85259

Open House

$1,495,000

3 Beds

2.5 Baths

3,060 SqFt

Status Active

MLS # 6740773

Property Type Single Family Residence

Price Type --

Experience luxury living in this guard gated Scottsdale Mountain home. Updated with light & bright finishes, floor-to-ceiling windows & sliding glass doors that frame breathtaking mountain views. The chef's kitchen boasts an immense island w/ stainless steel appliances & endless counter space that seamlessly flows into the family room & out to the backyard. Enjoy alfresco dining in the spacious covered patio, overlooking a sparkling lap pool. The primary suite is a true retreat, w/ direct access to the outdoors. The spa-like bathroom offers a large walk-in glass shower, a luxurious soaking tub, and an expansive walk-in closet. Secondary bedrooms are equally spacious, providing tremendous flexibility for your needs. This exquisite home combines elegance, comfort & breathtaking scenery. Go to our website for more information.

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8196 E Sunnyside Drive Scottsdale, AZ 85260

Open House

$1,495,000

4 Beds

3 Baths

3,097 SqFt

Status Active

MLS # 6709760

Property Type Single Family Residence

Price Type --

Discover refined living in this exquisite 4-bedroom, 3-bath home in the prestigious Scottsdale Country Club. Nestled on a large lot, this residence offers an oasis of tranquility with its sparkling pool and captivating golf course views. The spacious interior is a blank canvas, ready for your personal design touches. Imagine creating your dream home with elegant spaces perfect for both relaxation and entertaining. Enjoy the serene surroundings and exclusive lifestyle this community offers. A remarkable opportunity at an exceptional price for this highly sought-after area. Indulge in luxury and make this dream home yours today.

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