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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4186 W Silverdale Road San Tan Valley, AZ 85144

$1,300,000

4 Beds

3.5 Baths

3,602 SqFt

Status Active

MLS # 6752080

Property Type Single Family Residence

Price Type --

Are you tired of cheaply built black-and-white spec homes? Have you been looking for a home built with quality craftsmanship and distinctive style? Your search is over! This property is designed and built by a respected custom home builder as his personal retirement residence. This nearly 3.5 acres of beautiful desert land offers exquisite privacy, incredible views, and enough room for a shop, guest house, barn, you name it. All with animal rights and freedom from HOA hassles. The elegant interior finishes include over 12,000 sqft of beautiful blue pine lumber, cut from northern Arizona pine forests bringing resort-style living into the valley, custom stonework, granite countertops, and much more. The full-length covered patio, porch, and massive 30'X30' garage combine with the spacious home to equal 6,000 sqft under roof. Expertly designed for maximum functionality and efficiency, this home offers ample storage space and no hallways. No detail has been overlooked, and no corners have been cut in this custom four-bedroom, three-and-a-half-bath energy-efficient home. With a 400 amp electrical service, welder-ready connection, and EV charger in the garage, not to mention the R/V hook-up outside, this property checks all the boxes. Endless hiking, biking, and horseback riding are at your fingertips from the Rock Peak Wash Trail-head entrance into the over 10,000-acre San Tan Mountain Park just down the street. Don't delay! You could search the entire Phoenix Valley for years and never find another opportunity like this.

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6134 E Quail Track Drive Scottsdale, AZ 85266

$1,300,000

3 Beds

2 Baths

1,559 SqFt

Status Active

MLS # 6757772

Property Type Single Family Residence

Price Type --

The ultimate Horse Lover's Paradise! Unparalleled in design & craftsmanship, this light & bright open floor plan is nestled on almost 1.2 acres. Details throughout this immaculately maintained property exude true pride of ownership with only the finest finishes inside and beautifully landscaped outside. You'll be the envy of ALL your horse friends while kicking back on the patio looking out at the most charming barn/horse set up. This horse lover's dream property comes complete with 155 x 65 arena, tack room, storage & misting system. Don't miss out on this amazing opportunity as this home is waiting for you to come and enjoy all that AZ living has to offer.

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210 White Tail Drive Sedona, AZ 86351

$1,300,000

4 Beds

3 Baths

2,612 SqFt

Status Active

MLS # 6763188

Property Type Single Family Residence

Price Type --

Luxury home embraced by the 11th fairway of Gary Pank's championship Sedona golf course boasting views of golf course,Red Rocks,& mesas.Elegance found in this newly interior painted 4BR/3BA single level open floor plan, corner golf course lot.New energy efficient owned solar panels,H2O heater,dishwasher,RO system in '24. Lock & leave options include the latest technology w/Ring security cameras & ADT monitoring.Separate building adjacent to the pool/backyard provides unlimited potential for casita/studio/office.Resort style backyard w/hot tub providing cascading waters flowing into pool providing ambient amethyst lighting at night. Favorable Seller financing is a consideration as well as furnishings via a separate bill of sale.Obviously this one won't last long

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1302 E Maddock Road Phoenix, AZ 85086

$1,300,000

3 Beds

2 Baths

2,702 SqFt

Status Active

MLS # 6763983

Property Type Single Family Residence

Price Type --

Come see this beautiful property with a beautiful 2700 square-foot main home and then a two bedroom two bath guest house. Plus lots of horse stables and just an amazing overall property.

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4212 E Desert Cove Avenue Phoenix, AZ 85028

New

$1,300,000

4 Beds

3 Baths

2,718 SqFt

Status Active

MLS # 6777602

Property Type Single Family Residence

Price Type --

Wow! Recently remodeled home with high end finishes and designers touches throughout. Enjoy this open floor plan with a stunning kitchen with custom cabintery, quartzite counters and plenty of storage. The open layout has a beautiful large primary suite and bath on the opposite side of the home for additional privacy. An ADU is just steps away from the main house and includes a full bath, large wet bar area and two separate rooms that can be used for multiple flex spaces. You will feel like your vacationing at a high end resort with an oversized 1/2 acre yard, pool, fire pit and a large tiled covered patio. Great location near parks, hiking, the newly built PV mall, and the 51. Do not disturb tenants prior to active status !!

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16076 E Ridgestone Drive Fountain Hills, AZ 85268

$1,300,000

3 Beds

3.5 Baths

1,915 SqFt

Status Active

MLS # 6771065

Property Type Townhouse

Price Type --

Nestled within the guard gated community of FireRock Country Club, this step-free single level home is a true gem. Enjoy one of the rarest models that features its own casita and emerald views of the 10th hole. Built in 2019, this thoughtful home is sure to please with modern amenities and designer finishes. Step inside the stately foyer and instantly notice soaring ceilings and walls of glass. Open to the living and dining room, the Chef's kitchen is a delight with upgraded extended height cabinetry, 6 burner + griddle wolf stove, dual wall ovens, massive island with breakfast bar, and smart ''hidden'' walk-in pantry. Compelling rejuvenation, the master is a true retreat with its own 2 way fireplace, over-height windows, massive walk-in shower, dual raised vanities, private water closet, custom walk-in closet. A secondary full en-suite bedroom PLUS a full en-suite casita make this a perfect layout for loved ones or guests. Just off the entry, a convenient workspace, flex-storage space, and oversized laundry that can be used as a miniature office are sure to please. Step out to your backyard Sonoran Sanctuary and enjoy any season with a fantastic covered patio with ceiling heating, fireplace, built-in BBQ grill, stainless mini-fridge, incredible travertine bar, and a separate open air deck for basking in the sunshine and Golf Course views. Hidden features of this home include wood plank tile, low maintenance landscaping, fire suppression systems, plenty of storage, tankless gas water heater, and more!

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2002 S El Mirage Road Avondale, AZ 85323

$1,300,000

5 Beds

5.5 Baths

6,083 SqFt

Status Active

MLS # 6773391

Property Type Single Family Residence

Price Type --

A gorgeous home that welcomes you with a circle drive and a grand door poised to impress. This charming home offers unique features unlike other cookie cutter homes. This home includes five bedrooms and six bathrooms. The chef's kitchen offers an expansive gas range, double ovens, built in over-sized refrigerator, dual dishwahers and plenty of counter space. You have a variety of dining areas for your family and to entertain dinner guests. Enjoy the enormous game room or simply go to your private theater and catch a movie or your favorite sporting event. The resort style backyard is the perfect spot to unwind and relax. Concerned about the high cost of utilities? The owned solar generates approximately 30,000 KW annually reducing your utility bills exponentially. Take a look today!

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9928 E South Bend Drive Scottsdale, AZ 85255

$1,300,000

4 Beds

2.5 Baths

3,166 SqFt

Status Active

MLS # 6775153

Property Type Single Family Residence

Price Type --

Assumable VA loan at 2.99%. High ceilings, & recessed lighting throughout. The living/dining room provides large windows for bountiful natural light & a wood fireplace that keeps it cozy. The spacious great room i ideal for entertaining, with its inviting stone fireplace, lovely light fixtures, & sliding doors to the backyard with a covered patio and pool perfect for entertaining. Staggered cabinets w/crown mouldings, built-in SS appliances, granite counters, tile backsplash, a butler pantry, & a center island w/breakfast bar are some of the features you will adore about the Kitchen. The serene main bedroom boasts soft plush carpet, access to the backyard, & an ensuite w/dual sinks, a separate shower & tub, a private toilet room, & a walk-in closet. The resort like backyard enjoys a relaxing covered patio, Stone features, & a refreshing swimming pool & spa. Don't miss it!

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2216 E Willis Road Gilbert, AZ 85297

$1,300,000

4 Beds

3 Baths

2,656 SqFt

Status Active Under Contract

MLS # 6770275

Property Type Single Family Residence

Price Type --

On an acre in the heart of Gilbert, this stunning home really does have it all! Enjoy unbeatable convenience with nearby access to San Tan Mall, the 202 freeway, a variety of restaurants, shopping, and entertainment options—all within walking distance of the Gilbert LDS Temple. Updated interior featuring two cozy wood-burning fireplaces. The outdoor space is an entertainers dream, highlighted by a sparkling pool that was completely remodeled in 2022, including new resurfacing, plumbing, pump, and filter. Remodeled 450 ft casita, NEW 15x40 shade structure with lights and ceiling fans, NEW 4200SF of pavers and travertine, NEW 12x20 storage barn with electricity and over 100 new trees planted! NEW professional batting cage with lights(cage size 16'x 65'x18') RV Parking water and power! of turf! The expansive, flood-irrigated grassy area is perfect for outdoor games, making it an entertainer's paradise. This home truly has it allcome experience the lifestyle you've always dreamed of!

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2552 E Ridgewood Lane Gilbert, AZ 85298

New

$1,300,000

4 Beds

4.5 Baths

4,027 SqFt

Status Active

MLS # 6776619

Property Type Single Family Residence

Price Type --

Rarely do properties like these hit the market! Here's your chance to own a stunning country retreat in the prestigious Greenfield Acres. Picture yourself relaxing on the expansive front porch, working on projects in your sprawling garages, or hosting unforgettable poolside gatherings in your entertainer's paradise of a backyard. Perfect for car enthusiasts, this property boasts two oversized garages and ample storage with multiple sheds. Inside, the spacious yet cozy layout, paired with the warmth of natural brick, creates an inviting and timeless charm. This home is designed for making memories, blending functionality with comfort—an opportunity not to be missed!

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4526 E Vista Bonita Drive Phoenix, AZ 85050

New

$1,300,000

4 Beds

3 Baths

3,342 SqFt

Status Active

MLS # 6780803

Property Type Single Family Residence

Price Type --

A fantastic 4 bed, 3 bath residence in Sanctuary at Desert Ridge loaded with upgrades including an OWNED solar system! Featuring a beautiful facade w/stone accents, low-care landscape, 3 car tandem garage, and a paver driveway,! Huge iron door with privacy glass leading you into the grand entry. Spacious great room & a formal dining room w/high ceilings and a giant Island, perfect for hosting a dinner party. Hone your cooking skills in the gourmet kitchen, 42'' upper cabinetry w/crown molding, a walk in pantry, granite counters, subway tile backsplash, gas cooktop and stainless steel appliances. Upstairs you will find a Large loft and e additional bedrooms. Guest bedroom downstairs has built in custom cabinetry for an amazing office. The yard has a spectacular pool, gas fireplace and turf! The primary bedroom showcases soft carpet, a walk-in closet, and a lavish ensuite w/dual vanities. Also including a lovely backyard w/a covered patio, artificial turf, an outdoor fireplace, and a sparkling blue pool, this home is a dream come true! Don't miss out!

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5606 E Desert Winds Drive Cave Creek, AZ 85331

$1,300,000

4 Beds

4 Baths

4,125 SqFt

Status Active

MLS # 6766944

Property Type Single Family Residence

Price Type --

Amazing SW style home located on over 2 acres prime N Cave Creek Spur Cross area with amazing mountain views! This home features a split floorplan with lots of windows, tile flooring, and a fireplace. Owners have added a large walk in closet plus a 2 story library with spiral staircase leading to upper level and balcony! This home also features a hard to find 1600 SQFT separate 3 Car garage/workshop with AC and full bathroom, sink, counterspace, and lots of room so it could easily be converted to a guest house if desired. Relax in the courtyard area in between the home and seperate garage, or enjoy the views on covered back patio with Ramada. This home will not last long.

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