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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7805 E North Lane Scottsdale, AZ 85258

New

$1,325,000

4 Beds

2 Baths

2,576 SqFt

Status Active

MLS # 6779858

Property Type Single Family Residence

Price Type --

Did someone ask for a beautifully remodeled home with great curb appeal in Scottsdale? Here's a 1 story home on a corner lot that will take your breath away. You'll fall in love with the soaring ceilings covered in beachwood and exposed beams, skylights and the central fireplace in this Great Room. The kitchen is beautifully remodeled, providing plenty of seating for family and entertaining with breakfast bar, breakfast room, and dining area. The Primary Bedroom is thoughtfully designed with a tray ceiling, beehive fireplace, and ample space. The Primary Bathroom has a floating double sink vanity, walk-in closet, and custom tile/glass showerdirect, along with private entry to the backyard/pool area. The backyard/pool space has a 40'x12' covered patio, built in BBQ, and pool shower

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18131 W Palo Verde Court Litchfield Park, AZ 85340

$1,325,000

4 Beds

4 Baths

4,322 SqFt

Status Active

MLS # 6761977

Property Type Single Family Residence

Price Type --

This luxury 4 bdrm + flex room 3.5 bath custom home sits on a ½ acre lot in the comfort of a gated community. Stellar features include an open concept floorplan, 12 ft coffered ceilings, travertine floors, wood shutters, spacious bedrooms, walk-in closets, gas fireplace in the greatroom, a dramatic wall of glass, & solar panels saving hundreds on summer electric bills. Stunning chef's kitchen hosts 2 pantries, custom cabinets, granite counters, large island w/prep sink & bar seating, & GE Monogram appliances w/6-burner gas range/griddle, double ovens, & oversized refrigerator. The Primary suite dons a bow window, private exit to back patio, custom built-in closet, jacuzzi tub, dual vanities, & snail shower. The backyard oasis has a lighted sports court & plenty of room to add a pool.

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3802 E Piccadilly Road Phoenix, AZ 85018

$1,325,000

4 Beds

3 Baths

2,553 SqFt

Status Active

MLS # 6761839

Property Type Single Family Residence

Price Type --

This Mid-century modern inspired single level home is quintessential Arcadia Lite! Located on an oversized, corner lot with electric RV gate, play pool & 2 car garage with EV charger. Beautiful curb appeal that welcomes you home in quiet pocket neighborhood. Bright and open, the kitchen features a big designer island and dry bar with clean, modern lines (calling your inner Art Collector for these walls!) Split floorplan with primary on one side and other 3 bedrooms on the other - kitchen/living space in between, makes it a great living flow with plenty of privacy for the primary. A new sparkling pool, putting green and lounge area make the outdoor living so functional and great for hosting.

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3615 N 40th Street Phoenix, AZ 85018

$1,325,000

4 Beds

3 Baths

2,948 SqFt

Status Active

MLS # 6766107

Property Type Single Family Residence

Price Type --

Nestled in the heart of bustling Arcadia Lite and steps away from your favorite restaurants, shopping and parks - yet has your private, lush and quiet backyard for an oasis to get away from it all! This spacious charming home boasts a luxurious chef's kitchen, three full bathrooms, bedroom electric blackout window shades, 11ft accordion sliding doors for indoor/outdoor living, Sonos linked speakers and a bonus room in the primary currently used for a gym. The oversized primary bedroom is a retreat filled with natural light and french doors to the backyard, large walk-in closet, and a spacious en-suite bathroom. Two bedrooms each include their own beautifully renovated en-suite bathrooms; the fourth room has direct patio access and while smaller, could make for the perfect office or playroom off the living room in between guest stays. Garage is wired with 220V for electric vehicle charging and has ample storage space. Don't miss the adorable playhouse with air conditioning! You will have the Arcadia lifestyle and community at your doorstep but priced with incredible value for its new owners.

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8290 E Tailspin Lane Scottsdale, AZ 85255

$1,325,000

4 Beds

3 Baths

2,518 SqFt

Status Active

MLS # 6770656

Property Type Single Family Residence

Price Type --

Discover luxury living in this beautifully updated 4-bedroom, 3-bathroom home nestled within the prestigious, community of Grayhawk. This residence offers a seamless blend of modern updates and timeless design, ideal for both comfort and entertaining. Step inside to find luxury vinyl flooring throughout the main living areas, paired with custom window coverings and plantation shutters, creating an elegant and refined aesthetic. The updated kitchen boasts a complete suite of stainless steel appliances, granite countertops, and refaced cabinets, with ample storage to meet all your needs. The spacious primary suite features a stunning ensuite bathroom, complete with a custom-tiled walk-in shower, double vanity, and a generous walk-in closet. Secondary bathrooms Secondary bathrooms have also been thoughtfully refreshed, showcasing granite counters and refaced cabinetry. Outside, unwind in your private backyard, complete with a heated pool and an expansive covered patioperfect for Arizona's year-round outdoor lifestyle. The home is filled with an abundance of natural light, enhancing the warmth and charm of every space. Don't miss this incredible opportunity to own a beautifully maintained and thoughtfully upgraded home in Grayhawk!

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27820 N Lucero Drive Rio Verde, AZ 85263

$1,325,000

3 Beds

3 Baths

3,492 SqFt

Status Active

MLS # 6775544

Property Type Single Family Residence

Price Type --

Southwest Territorial home built in1998 on one of the largest lots in Tonto Verde. Two or three Bedrooms, 3 Baths, Open Kitchen with Great room. Formal & Causal Dining, Split Floorplan, Game Room with bar area. Saltillo Tile thru out, high ceilings, gas fireplace. Interior doors are 6'8''Wood doors. Located on the 6th fairway of the Peaks golf course. Private Patio with heated spool, water feature, fire-pit, built-in BBQ & mechanical sun shade. Large 3 car garage plus golf cart garage. Owner has a Pass Thru Golf Membership available. Two Championship Golf Courses and 18 hole all grass Putting Course. New Pickle Ball courts to open in the Fall, 2024.

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21357 E Stacey Road Queen Creek, AZ 85142

$1,325,000

4 Beds

4 Baths

2,704 SqFt

Status Active

MLS # 6773743

Property Type Single Family Residence

Price Type --

Stunning Queen Creek Home at Pegasus Airpark - A Must-See! Now is the perfect time to make this gorgeous home yours! Located in the prestigious Pegasus Airpark (5AZ3), this incredible property offers the ultimate blend of luxury and functionality. Key Features: Lot Size: Over 1 acre with breathtaking mountain views and mature fruit trees. Outdoor Oasis: Enjoy a heated pool and spa, ideal for relaxation and entertaining while taking in spectacular Arizona sunsets. Equestrian Potential: Equestrian lot with access to trails—just install a gate! While there are no current horse facilities, there's plenty of space to add your dream setup. Spacious Living: This stunning home boasts 4 bedrooms and 4 bathrooms, plus an additional half bath in the RV garage. Each bedroom features its own private bathroom for added convenience. Generous Garage Space: A 3-car garage and an expansive 16'4'' x 54'1'' RV garage provide ample room for all your vehicles and projects. Gourmet Kitchen: The beautiful kitchen showcases granite countertops, a stylish tile backsplash, and large bottom drawers for easy accessno more bending down to reach the back of your cupboards! Views: Experience stunning vistas of the San Tan Mountains from the comfort of your backyard. Don't miss out on this incredible opportunity to own a slice of paradise in Queen Creek. Schedule your showing today and make this dream home yours!

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18714 E Ironwood Circle Rio Verde, AZ 85263

$1,325,000

3 Beds

2.5 Baths

3,172 SqFt

Status Active

MLS # 6779258

Property Type Single Family Residence

Price Type --

Quality home, meticulously cared for in gated Tonto Verde. Starting with the beautiful white exterior, a gated front courtyard with mountain views, then enter this warm designer home with gorgeous wood floors and elegant smooth skim coating on the cream colored walls. The kitchen has all new appliances. The dining room has a custom light fixture to illuminate the magnificent round table that will be included with the purchase. The primary bedroom is oversized with and extra bonus room for exercise, craft, sewing or a private office.The 2nd bedroom is so large it could be considered a second primary suite. The 3rd bedroom is set up as an office with could be a bedroom with a nice walk-in closet.The backyard is a resort with a private pool & spa and the 3 1/2 car garage with epoxy surface.

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16030 E Cholla Drive Fountain Hills, AZ 85268

$1,325,000

4 Beds

3.5 Baths

4,856 SqFt

Status Active Under Contract

MLS # 6775334

Property Type Single Family Residence

Price Type --

Welcome home! This property sits on a spacious 1.3-acre elevated corner lot in Fountain Hills, offering breathtaking views in every direction. Don't miss this incredible opportunity with huge potential and no HOA. It's rare to find views like these at this price point. The home features 4 bedrooms, 3.5 bathrooms, a large kitchen with stainless steel appliances, a negative edge pool, a 2-car garage, a circular driveway, and a wraparound view deck for endless enjoyment.

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1011 Dusty Lane Show Low, AZ 85901

$1,325,000

3 Beds

2.5 Baths

3,422 SqFt

Status Active

MLS # 6658000

Property Type Single Family Residence

Price Type --

This gorgeous 2 story home, with over 3,000 Sq ft sits on just over 6 acres. With 3 bedrooms, 2.5 bathrooms, plus a large bonus room, this home has all the space you need. Attached is a 3-car garage, with a workshop. Included on the 6 acres is a storage building, playground, orchard and extra-large metal shop, complete with 2 garage doors, and a wood stove. Mature trees, owned solar panels, brand new quartz counter tops, a new pellet stove, custom master bathroom, lawns on sprinkler systems, and a private well are just a few more things this amazing property has to offer! Listing agent is directly related to sellers.

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17518 E Whitethorn Drive Rio Verde, AZ 85263

$1,325,000

4 Beds

3.5 Baths

3,651 SqFt

Status Active

MLS # 6735190

Property Type Single Family Residence

Price Type --

Nestled on a peaceful road among breathtaking mountain vistas, this home offers unparalleled resort-style living in serene Rio Verde. A thoughtfully designed split floor plan allows for privacy with the primary bedroom split to one wing, away from the other 2 bedrooms in the main house. An attached 1bed/1bath casita is accessible from the back patio. Entertain effortlessly in the great room with a cozy fireplace, a huge built-in entertainment center, a sophisticated built-in bar, and game room with space for a pool table. Adjacent is the chef's kitchen with a large island, granite countertops, stainless steel appliances, and a walk-in pantry. Versailles pattern travertine & engineered wood floors as well as other beautiful finishes throughout the home. The deluxe master has an oversized bath suite with an adjoining room that can be used as an office, workout space, or an extra closet. Stunning views of the Tonto National Forest serve as a picturesque backdrop while you're relaxing in the sparkling pool or in the new above ground hot tub among beautiful landscaping and wide-open skies. Additional upgrades in addition to the new hot tub include 2 new A/C units in 2022, and an extensive critter fence installed around the perimeter. Don't miss this invitation to luxurious living here in Rio Verde!

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27832 N Silverado Ranch Road Peoria, AZ 85383

$1,325,000

4 Beds

3.5 Baths

3,532 SqFt

Status Active

MLS # 6752926

Property Type Single Family Residence

Price Type --

Discover the tranquility of mountain vistas and the Sonoran Desert with this stunning home! This highly sought-after Whistler plan by Taylor Morrison is nestled in the esteemed Northlands community of North Peoria. Revel in nearby hiking and ATV trails, nearby Lake Pleasant, and breathtaking sunsets. Located in the prestigious Summit Section, this home backs onto the magnificent Calderwood Butte, offering sweeping panoramic views. With exceptional curb appeal, this home is bathed in natural light. The gourmet kitchen boasts upgraded quartzite waterfall countertops, white pinstriped cabinets, and stainless steel appliances, flowing seamlessly into a coffee/wine sitting area looking out to the amazing view. *BUT WAIT, THERE'S MORE* The kitchen is open to the spacious family room with a large built-in entertainment center. The generous primary bedroom features a custom closet with ample storage. With three additional bedrooms and 2.5 bathrooms, there's plenty of space for family and guests. Unwind under the extra-wide pergola, savor the views, enjoy a cocktail, and listen to the soothing sounds of your pool's waterfalls. Whether you love hiking, spending a day at the lake, or simply enjoying the tranquility of your surroundings, this remarkable home offers it all. Don't miss out - come see it today!!

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