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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7180 E Kierland Boulevard Unit 312 Scottsdale, AZ 85254

$1,329,000

2 Beds

2 Baths

1,461 SqFt

Status Active

MLS # 6747905

Property Type Apartment

Price Type --

Experience modern luxury living in this stunning 2-bed, 2-bath unit in Optima Kierland Condominium! Home exudes elegance with recessed lighting, a neutral palette, wood-look tile flooring in common areas, and Berber carpet in bedrooms. The large open layout creates an inviting and spacious atmosphere, ideal for everyday living & entertaining! The gourmet kitchen is a cook's delight, featuring granite counters, flat-panel cabinetry, a prep island w/breakfast bar, and high-end SS appliances w/cooktop gas. Split floor plan adds extra privacy! Oversized main bedroom has a cozy sitting area and an ensuite with dual sinks & a walk-in closet. Secondary bedroom also includes its own walk-in closet & private bathroom. The east-facing orientation captures the breathtaking sunrises and the McDowell Mountains' iconic purple hues at sunset. The Optima Kierland lifestyle offers unparalleled living with premier access to world-class dining, shopping, and golfing. Enjoy exceptional amenities like a rooftop oasis with 360-degree views, a pool, spa, outdoor kitchens, fire pits, sauna, and more. Additional perks include a fitness center, pickleball courts, golf simulator, basketball, yoga studios, and a rooftop running deck. Don't miss this rare opportunity!

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8073 N Harmony Lane Flagstaff, AZ 86001

$1,325,000

4 Beds

3 Baths

2,969 SqFt

Status Active

MLS # 6756276

Property Type Single Family Residence

Price Type --

To be built. New larger floor plan offering 2969 sqft! Plans semi-customizable. This luxurious home will be built on one acre at the base of the San Francisco Peaks. Almost instant access to Arizona Snowbowl Ski Resort and world-class hiking/biking trails, yet only minutes from downtown Flagstaff. Pictures featured are from a previously completed home. They are provided as an example of amenities available. Exact amenities and buyer selections will vary. This open floor plan features a gourmet kitchen, a great room that transitions seamlessly to outdoor living with spectacular views of the peaks. 4 bedrooms, 3 baths with a pull-through RV garage!! Homes by this builder completed on adjacent lots. Pictures & additional info available upon request.

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1902 E Cloud Road Phoenix, AZ 85086

$1,325,000

4 Beds

3.5 Baths

2,810 SqFt

Status Active

MLS # 6740641

Property Type Single Family Residence

Price Type --

Don't miss out on this beautiful new construction home, to be built. Contract now and pick your finishes and upgrades. Spacious pull through RV garage that is connected to an additional 4 car garage. Wood-like tile plank flooring and high-ceilings throughout the home. Open concept living space with a split bedroom floor plan. Large kitchen island with space for counter seating, lots of cabinet space for storage, and a nook to be used for so many possibilities, such as a coffee bar, breakfast table, or even a window bench. Block wall enclosing the backyard for privacy (photos taken before wall was complete). This home is located across from state land, no dirt roads and great views. *PHOTOS are of previously build same floor plan.

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8507 E Vía De La Escuela -- Scottsdale, AZ 85258

$1,325,000

3 Beds

2 Baths

2,270 SqFt

Status Active

MLS # 6761140

Property Type Single Family Residence

Price Type --

Timeless and fully renovated in McCormick Ranch! Home underwent a complete renovation in 2021. Light, bright and open with a custom marble waterfall island and butcher block peninsula. Black metal doors open to a stunning front courtyard for outdoor grilling, dining or relaxing in the evenings underneath the bistro lights in front of an outdoor gas fireplace. A 12-foot wall of black metal doors opens fully to reveal a charming and private back yard featuring a diving pool, cactus garden, and artificial turf. The floorpan has been opened up for seamless indoor/outdoor living and features a vaulted great room, chef's kitchen, dining room and breakfast nook. The primary suite was expanded for a generous walk in closet and has a fireplace with french doors leading to the rear covered patio.

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6228 E Ocupado Drive Cave Creek, AZ 85331

$1,325,000

4 Beds

3 Baths

3,036 SqFt

Status Active Under Contract

MLS # 6778371

Property Type Single Family Residence

Price Type --

Wonderful location in North Scottsdale in the coveted Lone Mountain Community. This well appointed four bedroom three bathroom home is now available for you to call home!. The home features upgraded appliances and finishes along with one of the best views in the neighborhood. Adjacent to the wash, you will enjoy the professional designed backyard without obstructions. The heated pool is surrounded by recently installed travertine tile and features a bubbling spa complete with custom fire features. Additionally in the backyard there is a built-in gas pebble accent fire pit, expansive covered patio complete with a heater.. and YES! even a built-in BBQ. The open floorpan offers amazing space to entertain and relax until your heart is content. The soaring ceilings and abundance of windows creates a light and bright space. The Entertainer's Kitchen features a complete suite of GE Monogram appliances (including wine fridge), gas six burner stove complete with griddle, granite countertops, center island and more storage then you will know how to fill! The expansive Master Suite was recently upgraded with custom shelving in the TWO walk in closets and features access to the backyard. The three other bedrooms are split from the the Master Suite; two bedrooms adjoined by a Jack and Jill bath while the fourth bedroom is adjacent to the third bathroom. All secondary bedrooms are spacious with ample closet space and cozy carpet. The neighborhood is within walking distance to top rated schools, daily conveniences are near by and is located within close proximity to major thoroughfares to get you anywhere in the Valley you wish to go! This home truly has all that you are looking for in the delightful and gated neighborhood of Lone Mountain, Welcome Home!

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3739 E Sagebrush Street Gilbert, AZ 85296

$1,325,000

4 Beds

3 Baths

3,461 SqFt

Status Active

MLS # 6714172

Property Type Single Family Residence

Price Type --

Welcome to this beautiful 4-bedroom residence nestled in the Lakeview Trails Community! Prepare to be impressed by a spacious open layout showcasing tile flooring, a fresh soothing palette, recessed lighting, and high 12ft ceilings in Living room and Kitchen . The remarkable Gourment kitchen features light gray cabinetry, stainless steel appliances, quartz counters, a chic mosaic herringbone pattern backsplash, double wall oven, a walk-in pantry, and a large center island including a breakfast bar. Discover the main retreat comprised of soft carpet in all the right places, a walk-in closet, and an immaculate ensuite for added comfort. Host memorable gatherings in the fabulous backyard, offering covered and open patios! What's not to like? Make this heaven yours!

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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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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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1955 E Blackhawk Drive Gilbert, AZ 85298

$1,325,000

4 Beds

3.5 Baths

3,882 SqFt

Status Active

MLS # 6772431

Property Type Single Family Residence

Price Type --

Fantastic farm style home with a gen-suite (casita) model including 4-bedrooms, 3.5 bathrooms in Marathon Ranch! Gated community with lots of walking trails is adjacent to the San Tan mountains. Lots of curb appeal with brick veneer accents, artificial turf, 3-car garage, paver driveway, manicured front yard, and a welcoming courtyard are just the beginning. An inviting contemporary design with modern fixtures and many stylish upgrades throughout and with an open concept with over 3200 sqft in the main home, plus a gen-suite (casita) with approximately 700 sqft with two separate entrances. Discover a spacious open floor plan with elegant tile flooring, high ceilings, custom palette throughout, and and plantation shutters. The gourmet kitchen is equipped with lots of white cabinetry with crown moulding and upgraded roll-out drawers, a large walk-in pantry, double ovens, quartz counters, SS appliances, pendant lighting, and a spacious island with a breakfast bar. The living room is the perfect place for entertaining family and friends with a large sliding glass door that can be used for letting in the natural light with an indoor/outdoor concept. The formal dining room can also be used as a lounge area! The enormous main bedroom boasts private outdoor access, a walk-in closet, and an elegante ensuite bathroom with a separate tub & shower, dual sinks, and a walk-in closet. The remaining bedrooms are a nice size with soft carpeting with a shared bathroom and walk-in closets. Laundry inside with lots of storage & utility sink. The private & large casita offers a living area, laundry inside with stackable washer & dryer, a nice size bathroom with large shower, a kitchenette with a full-size refrigerator & microwave, and 2 separate entrances! Don't forget about the wonderful backyard, that includes a covered & enclosed patio, extended seating area, a putting green, and a refreshing hot tub! The home of your dreams is here. The upgrades list is available upon request. Stackable washer & dryer in gen-suite will convey. All 3 refrigerators will convey.

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3102 N 81st Place Scottsdale, AZ 85251

$1,325,000

5 Beds

2.5 Baths

2,211 SqFt

Status Active

MLS # 6772581

Property Type Single Family Residence

Price Type --

COMING SOON! Discover your dream home in Scottsdale's most desirable neighborhood! This beautifully remodeled and rebuilt 5-bedroom, 2.5-bathroom luxury residence includes the most modern elegance and sophisticated finishes throughout. The open-concept layout offers spacious living areas, a gourmet kitchen with high-end appliances, and a luxurious primary suite. Step outside to your own private oasis, featuring a sparkling pool, lush landscaping, and an expansive backyard perfect for entertaining. Nestled in a sought-after area close to top dining, shopping, and golf, this home offers the ultimate Scottsdale lifestyle. Don't miss out on this 1 of 1 coming soon home

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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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