Mortgage Myths: Here’s Why You Don’t Need a Full 20 Percent Down Payment

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.

Click Here to See What Your Home is Worth

7521 E Camino Salida Del Sol -- Scottsdale, AZ 85266

$1,299,000
3 Beds
2.5 Baths
3,210 SqFt
Status Active
MLS # 6720520
Property Type Single Family Residence
Price Type --
Welcome to this peaceful, light and bright home in the hidden gem gated community of Las Piedras at Sevano Village. Located just seconds from the site of the new Ashler Hills Park and the convenience of shopping and restaurants, this home boasts many upgrades in a neutral palette including a beautifully renovated kitchen all in an open, great room concept. A gated courtyard entry with a babbling water feature make a welcoming entrance and comfortable outdoor living space. A well thought out floor plan separates the two guest bedrooms from the grand primary suite with its dual walk-in closets in a spa-like bathroom. A large den located off the great room through double doors makes a great office, library or media room. The rear outdoor living space has a wonderful fire pit, artificial turf area, covered patio, pavers and Southerly down valley mountain views to round out this fabulous home.

11776 N 81st Street Scottsdale, AZ 85260

$1,299,000
4 Beds
3 Baths
2,472 SqFt
Status Active
MLS # 6736662
Property Type Single Family Residence
Price Type --
Easily one of the BEST INTERIOR LOTS in the subdivision. Home has elevated views of the water and Golf Course. Super quiet and private interior optimal lot with only one home sharing lot line! This is a stunner complete with private pool and spa. Home also boasts a detached casita with full bath that is 399 SF not included in the 2472 SF Count. Better hurry as these properties sell fast!! Priced to SELL!!

18148 W Marshall Court Litchfield Park, AZ 85340

$1,299,000
5 Beds
5.5 Baths
4,550 SqFt
Status Active
MLS # 6752561
Property Type Single Family Residence
Price Type --
You must see this stunning 5BR/5.5BA luxury custom home on a corner lot located in the highly desirable gated community of Russell Ranch. This home has been gently lived in for only 5 months of the year by the current and previous owner. With a north/south exposure enter your home from a beautiful paver covered walkway through a private courtyard with fireplace and wall fountain. The dramatic 18-foot-high foyer opens to the living area with diagonal travertine flooring and views directly to the backyard. This unique split floorplan includes an open kitchen/great room design, living room, and a formal dining room. The gourmet kitchen incudes upgraded custom cabinetry with a 72-inch Sub-Zero side by side refrigerator, GE professional gas stove and dual ovens, granite counters, large kitchen island with raised breakfast bar that opens to the family room with an exquisite custom stone fireplace. The large master retreat boasts a gas fireplace, his and hers custom walk-in closets, dual private toilet rooms, vanities, jetted hot tub surrounded by the luxurious 23-foot travertine and marbled curved shower with 3 shower stations. Additional features include a wine room with separate temperature controls, private ensuites for ALL guest rooms, 4 of which have jetted tubs, double coffered ceilings throughout with hidden rope lighting, a central-vac system, and leased solar panels. Relax outside under a 1200 SF covered patio with mountain views and enjoy the professionally designed landscaping, putting green, fountain, above ground spa with covered pagoda and an observation deck for the fantastic desert sunsets. Make this home yours today. To show is to sell.

28021 N 156th Street Scottsdale, AZ 85262

$1,299,000
3 Beds
2.5 Baths
2,704 SqFt
Status Active
MLS # 6760088
Property Type Single Family Residence
Price Type --
Welcome to this stunning new home, offering 2700+ SF of modern living with breathtaking area views. This beautifully designed residence features three spacious bedrooms, versatile den, 2-1/2 baths, oversized 2 car garage w/ attached RV garage. The open-concept floor plan showcases a gourmet kitchen with high end appliances, an inviting living room with a cozy fireplace, and large windows that fill the space with natural light. The primary suite is a tranquil retreat, complete with an ensuite bathroom and walk in closet. Step outside onto a covered patio perfect for outdoor entertaining while enjoying some area mountain views. With beautiful landscaping and energy efficient features, this home perfectly blends comfort, style, and functionality for your dream lifestyle.

30813 N 138th Street Scottsdale, AZ 85262

$1,299,000
4 Beds
3 Baths
3,320 SqFt
Status Active
MLS # 6768091
Property Type Single Family Residence
Price Type --
Looking for a home with all the bells & whistles... you have found it! This beautiful Santa Fe Style residence on a 1.248 acre lot with no HOA is a true dream and value. Surrounded by breathtaking mountain views, a 3-car sided garage, RV gate, circular driveway and more. Travertine flooring, stylish light fixtures & windows enrich the experience. A desirable great room enhanced by a floor-to-ceiling stone fireplace & media niches is designed for creating memories. A prep island w/a breakfast bar, abundant cabinetry adorned w/crown moulding, granite counters, travertine backsplash, built-in appliances, a handy pantry, & a lovely bay window in the dining area complete this chef's kitchen. Note that private water well pump & tank have recently been replaced as well as the pool equipment. Rest & rejuvenation await in the owner's retreat, showcasing plush carpet, direct outdoor access, double door entry, a two-way fireplace, plantation shutters, and an ensuite comprised of two vanities, soaking tub, and a walk-in closet. As a bonus, you will also have an open den/office. Wonderful backyard includes a covered patio with a fireplace, built-in BBQ, fire pit, roof deck, and a shimmering pool & spa. What's not to like? Experience the epitome of desert living in this meticulously crafted haven!

9916 N 162nd Lane Waddell, AZ 85355

$1,299,000
4 Beds
4 Baths
3,601 SqFt
Status Active
MLS # 6769374
Property Type Single Family Residence
Price Type --
*Seller financing available* Welcome to Twelve Oaks Estates! Nestled on almost an acre of land in Waddell, this high-end custom masterpiece offers unparalleled luxury living with breathtaking mountain views and all the city conveniences close by. Interior Features: Open concept living adorned with exquisite lighting, travertine tile, and 12' ceilings. Stone accents throughout, complementing the travertine tile. Formal dining room and glass French-door enclosed office. Chef's kitchen: Expansive granite island with storage and seating. Top-of-the-line natural gas Viking stove. Custom hickory cabinetry. North wing: Two spacious bedrooms. Each with their own bathroom sinks. Shared Jack and Jill restroom. South wing: Primary bedroom with high ceilings. Sliding glass doors leading to a private outdoor oasis. Spa-like suite with a luxurious jetted tub. Expansive walk-in closet with custom cabinetry. Large laundry room with abundant storage, hickory cabinetry, wash basin, and 2nd refrigerator. Family room with 12' ceilings, gas fireplace hickory mantel, 5-channel built-in speakers, and acoustic panels. Guest casita with separate entrance: Granite counter and hickory cabinet kitchenette with refrigerator and convection microwave. Full bathroom. Sound insulated from the rest of home. Ethernet connections wired throughout the home and detached garage. Central vacuum, soft water, hardwired security system, and exterior cameras. Exterior Features: Resort-style backyard. Expansive patio with sunset views over the White Tank Mountains. Mature palms and trees provide beautiful views, shade, and privacy. Custom motorized retractable awnings providing 28'x11' of shade over pool deck. Large pool with water features for entertaining and hot summer evenings. Pre-wired for outdoor speakers. Outdoor kitchen is shaded by Sunbrella awning, complete with bar-top seating area, built-in 5-burner grill, Alfresco power burner, ice drawer, gabage, and storage drawer. Two wood fire pits and shaded built-in seating area. Artificial turf and pavers. Space for a dirt riding track or future sports court. Huge RV garage: 46' deep RV storage with 14'x14' insulated garage door. Additional 16'x9' insulated garage door. 150-amp service panel with ample 120/240v circuits both inside/out. High output lighting, ceiling fans, and exhaust fan. 3-zone mini-split air conditioning. Dedicated bathroom, shop sink, and water outlets. Parking for at least six cars. Optional high-end Rotary 2-post lift for sale. 2x6 full shear construction, R-23 insulation, and pneumatic lines plumbed throughout. 6+ inch thick, 4000psi, rebar enforced slab. Additional 200 square feet in the loft featuring wood flooring and custom butcher-block workspace. Room to park multiple additional cars/trailers on either side of RV garage and on over 3000 sqft of pavers in backyard. Attached garage at the main residence (over 1,300 square feet): Optional 2-post lift available. 50-amp welding / EV circuit. Built-in storage cabinets, sink, and epoxy floor. This no-expense spared property is perfect for all with those that appreciate luxury living, entertaining guests, outdoor living, swimming, cooking, and motorsports/mechanics. This property has it all, offering an automotive garage/car workshop, with oversized parking and large garage spaces to meet all your needs, including accommodating a mega RV. Don't miss your chance to own this exceptional property in one of Waddell's most prestigious neighborhoods!

23624 N 76th Place Scottsdale, AZ 85255

$1,299,000
3 Beds
3 Baths
2,220 SqFt
Status Active
MLS # 6771528
Property Type Single Family Residence
Price Type --
Ideal location in North Scottsdale. Just minutes away from world class resorts, golf, hiking, shopping and dining. Premium interior lot, well away from roads. This newer built (2021) soft contemporary home is beautifully upgraded inside and out. Enjoy indoor/outdoor living with a sparkling pool and spa in this special setting that backs to a natural desert area. A designer feel gourmet kitchen highlights the interior of the home, featuring a GE Monogram appliance package, quartz slab waterfall island and generous amounts of cabinet space. There is also a dedicated home office/flex room in addition to the three bedrooms. Other upgrades include a linear outdoor fireplace, tile shower surrounds, an EV charger, water softening system, tankless water heater, and plantation shutters throughout

18371 W Roma Avenue Goodyear, AZ 85395

$1,299,000
5 Beds
3.5 Baths
3,419 SqFt
Status Active
MLS # 6775584
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the exclusive, RV-friendly gated community of Sedella, where adventure and luxury meet! This stunning property offers a spacious and elegant floorplan, with new tile flooring throughout, creating a fresh, modern feel. RV enthusiasts will love the oversized 20x50 RV garage with mini-split systems for year-round comfort, along with the 50 ft. concrete RV pad offering full hookups, including a 50-amp service and clean-out station—ideal for parking your RV. The property also boasts an RV double gate with additional parking, providing ample space for all your vehicles and toys. Step into your resort-style backyard, featuring a sparkling pool, expanded covered patio, mister system, and lush landscaping, perfect for entertaining or relaxation. With newer updates like HVAC, a water heater, and a full water filtration system, this home is a rare find that blends functionality with luxury in a neighborhood designed to accommodate your RV lifestyle. Additionally, the home is fully wheelchair accessible, featuring a roll-in tile shower and a roll-under sink, making it comfortable and convenient for everyone.

19218 N 88th Way Scottsdale, AZ 85255

$1,299,000
5 Beds
3 Baths
3,318 SqFt
Status Active Under Contract
MLS # 6762702
Property Type Single Family Residence
Price Type --
Welcome to this gem in North Scottsdale. Meticulously maintained. Updated kitchen 2021, New HVAC 2021, New Roof 2021,New Soft water system 2023. All new appliances 2021. This home has been well loved and is ready for a new family to enjoy.

1105 N Indian Paintbrush Circle Payson, AZ 85541

$1,299,000
4 Beds
4 Baths
3,472 SqFt
Status Active
MLS # 6689974
Property Type Single Family Residence
Price Type --
This amazing 4 bed, 4 bath multi-level home in Payson is now for sale! Enjoy the breathtaking golf course and panoramic mountain views from a recently remodeled and expanded deck. The home itself is nestled in the Community of Chaparral Pines and boasts a stunning façade, manicured landscape, and a 2 car garage w/paver driveway. Inside you will find a spacious living area w/elegant tile flooring, stylish light fixtures, abundant natural light, and neutral palette throughout. Hone your cooking skills in this gorgeous kitchen, comprised of wood cabinetry w/granite counters, SS appliances such as a wall oven & wine cooler, and an island complete w/a breakfast bar. You'll love the primary bedroom, featuring soft carpet, private deck access, walk-in closet, and a lavish ensuite! Don't forget about the cozy den, perfect for an office! Also including a HUGE deck w/a built-in BBQ where you can enjoy a summer cookout w/friends and loved ones, this home is a dream come true! Don't let this incredible opportunity slip by!

4601 W Paradise Lane Glendale, AZ 85306

$1,299,000
8 Beds
8 Baths
4,573 SqFt
Status Active
MLS # 6674143
Property Type Single Family Residence
Price Type --
NO HOA!!! CUSTOM Tri Level Home in Sunburst Farms sits on just under an acre with a detached Guest House, Separate Home Office and temp controlled Workshop! Solar panels, optional flood irrigation and a 500 gallon propane tank keep utility expenses low and affordable. Pride of ownership is in the details. Main House features 4bed/3.5bth, a custom kitchen with 2 sinks, built in appliances that include a convection cooktop, double ovens, and trash compactor. The finished basement has a bedroom, full bathroom, 2 walk-in closets and den. You'll notice all the GORGEOUS built in cabinetry throughout the entire home. The backyard oasis is an entertainer's dream with a massive covered travertine patio that extends to a heated pool/ spa and built in full outdoor kitchen and fireplace. Follow the luscious green landscaping to a detached 2bed/2bath guest house complete with a full kitchen and huge laundry room. Exit the private courtyard and you will find your perfect home office with 2 separate office areas and a full bathroom. Workshop is a temp controlled (mini split) 50ft garage featuring a 14ft door, chain hoist, built-in work bench, shop sink, locked storage area and half bathroom. Space is also preplumbed for compressed air. There are many more details, too many to list. Bring your toys and your tools and come check it out for yourself!

11815 W Lost Man Canyon Way Prescott, AZ 86305

$1,299,000
4 Beds
3 Baths
2,680 SqFt
Status Active
MLS # 6674739
Property Type Single Family Residence
Price Type --
Enjoy breathtaking, uninterrupted vistas of Williamson Valley from this exquisite ''Ranch Style'' residence. Boasting 4 bedrooms, 3 baths, and a spacious 2 car garage, this home is a testament to rustic elegance. Step inside to discover large hewn timber beams, natural stone accents, and a stunning tongue-and-groove vaulted ceiling in the Great Room, complemented by a wall of windows framing panoramic views. Throughout the home, you'll find rich wood floors, Alder doors, and a charming stone fireplace with a mantle. The generously sized kitchen features granite countertops and a convenient wet bar in the dining area. Outside, multiple covered patio areas beckon relaxation amid mature trees and lush vegetation. Experience the epitome of tranquil living.

Leave a Reply

Your email address will not be published.