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.

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36580 N Conestoga Trail Cave Creek, AZ 85331

$1,275,000
4 Beds
2.5 Baths
2,462 SqFt
Status Active Under Contract
MLS # 6779055
Property Type Single Family Residence
Price Type --
Nestled on a picturesque hillside in Cave Creek, this luxury retreat sits on a sprawling 1.195-acre lot, offering a serene blend of privacy and charming elegance with direct views of Black Mountain to the East. A custom-designed decorative entry gate welcomes you, leading to an impressive paver driveway. Every detail of this home has been carefully crafted, from the front entry patio and metal and glass entry door to the inviting backyard, which opens seamlessly to the indoors for an entertainer's paradise. Here, a covered patio, artificial turf, built-in BBQ with seating, outdoor refrigerator, and an oversized fire pit with built-in seating provide an ideal space to enjoy the Arizona evenings. The chef's kitchen is a culinary delight, equipped with premium features such as a gas cooktop, a wall oven with regular and convection baking, a built-in Sub-Zero refrigerator with glass doors, freezer drawers in the island, and granite counters with peninsula bar seating. A spacious walk-in pantry adds convenience, while the kitchen's open flow enhances the entertainment experience. This home's thoughtful design extends to each room, where breathtaking mountain views create a constant connection with the natural surroundings. Inside, the main living spaces are graced with travertine stone floors, while hardwood warms the bedrooms. The open-concept great room features custom shelving, designer lighting, and a stone fireplace. The split floor plan includes a secluded primary suite that overlooks the tranquil backyard and mountain vistas. The luxurious en-suite bath is complete with dual vanities, a walk-in shower with dual shower-heads, a private toilet room, and a custom-designed walk-in closet. Additional amenities include a private office off the entry with an adjacent powder bath, a spacious laundry room with garage access, sink and extra cabinetry, and a three-car garage with glass doors, tall ceilings, and epoxy floors. Built in 2013, this home has been recently updated with exterior electric blinds, a new block wall along the north end, and extensive landscaping that enhances both privacy and curb appeal. With no HOA, and city water and sewer amenities, this residence offers both freedom and convenience for luxurious living in a prime location. Located just steps from hiking trails, this hillside gem provides an extraordinary lifestyle for those seeking elegance, privacy, and the beauty of Cave Creek's mountain landscapes.

15770 E Palomino Boulevard Fountain Hills, AZ 85268

$1,275,000
3 Beds
3.5 Baths
3,564 SqFt
Status Active
MLS # 6781772
Property Type Single Family Residence
Price Type --
Views, Views and more Views! Stunning panoramic mountain and desert views from both inside and out! If you are looking for unparalleled views this is the property for you! Kitchen, dining, living and primary rooms all look out to the majestic mountains! Tucked away and private location backing to a desert arroyo. Spacious gourmet kitchen with great room concept. Casual or formal dining area. Large living room w/ entertainment area. Split floor plan. Primary bedroom features a huge walk in closet with custom organizers, vanity w/dual sinks and separate tub, oversized shower and toilet area. Bonus room downstairs perfect for an office or 2nd entertaining spot. Tranquil backyard features amazing views with plenty of room for entertaining, BBQs or resort style relaxation.

5225 E Bluefield Avenue Scottsdale, AZ 85254

$1,275,000
3 Beds
2 Baths
3,053 SqFt
Status Active
MLS # 6772875
Property Type Single Family Residence
Price Type --
Location! Location! Location! This beautiful 3 Bedroom/2.5 Bath, plus a Den, home is located in the desirable MAGICAL ZIP CODE 85254! A very light & bright preferred split floor plan boasts the open, Great Room concept, with nice high ceilings. Fabulous for entertaining Family & Friends! The fireplace is the perfect addition for those chilly nights. The spacious eat-in Kitchen features granite counters, an island, breakfast bar, double ovens, gas stove, large walk-in pantry, built-in desk and roll-out shelving. No carpet in this home. Plantation shutters in all of the right places. The expanded Primary Bedroom offers sitting room and sliders to the patio. Two separate vanities and closets are a Bonus! A large walk-in shower, separate tub, & extra built-in custom cabinets enhance the Primary Bath. The Den also features built-in cabinets & shelves. The second Bedrooms are sizable. Formal Dining and Living Rooms with crown moulding provide more gathering space. Enjoy the great AZ outdoors in this Resort-Style Backyard featuring a sparkling spool with a water feature, 2 grassy areas, a large covered patio with speakers, palm trees, and a built-in BBQ. This special large lot backs to a greenbelt with no one behind. Laundry sink and cabinets in the Laundry Room. The extended 3 Car Garage is loaded with built-in cabinets and a workbench. Along with a newer roof and newer exterior paint, a water softener system and security system are also a plus. Must see! Put this elegant beauty at the top of your list!

4305 E Osborn Road Phoenix, AZ 85018

$1,275,000
4 Beds
3 Baths
2,239 SqFt
Status Active
MLS # 6718073
Property Type Single Family Residence
Price Type --
Completely rebuilt in 2022 with no expense spared! While most builders are having to cut corners, this house has gone above and beyond with its quality and craftsmanship. Oak floors through out, vaulted ceilings and designer finishes. This 4 bedroom, 3 bath organic modern home is a breath of fresh air. Spacious kitchen with oversized quartz waterfall countertop, gas range and wine fridge. Minimal maintenance landscape with high quality turf both front and back plus mature trees on the perimeter. Newly installed costume fence and shade coverings. Quiet and walkable neighborhood with tons of neighborhood hotspots surrounding. Won't last long!

8874 E Flathorn Drive Scottsdale, AZ 85255

$1,275,000
3 Beds
2 Baths
2,003 SqFt
Status Active
MLS # 6729431
Property Type Single Family Residence
Price Type --
NEW PRICE!!!Highly desirable DC Ranch location! Wonderful single level patio home in gated community, surrounded by open space & beautiful homes w/all the great DC Ranch amenities! Recently refreshed w/new paint & wood floors in bedrooms. You'll love the great rm floor plan/totally open to kitchen & dining rms. High ceilings add to the openness of this home. You'll love the kitchen w/it's huge island/granite counters & gorgeous custom alder cabinets/gas range/wall oven & microwave/sub zero fridge & walk in pantry! 3 split bedrms / lg master suite w/exit to yard/double vanity & 2 walk in closets/separate tub & shower/Murphy bed in 2nd bdrm/Built in desk in hallway/ nice laundry room w/sinks & lots of storage/ Solid alder doors/Private yard W/spa &/water feature./Built in BBQ/2 car garage. HOA fee includes access to the DC Ranch amenities.

5713 W Rowel Road Phoenix, AZ 85083

$1,275,000
5 Beds
4.5 Baths
4,796 SqFt
Status Active
MLS # 6729792
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the prestigious Stetson Valley! This spectacular hillside residence boasts breathtaking views of Ludden Mountain and offers privacy, making it an oasis in the desert. Outside, indulge in resort-style living with a sparkling heated pool with a large, covered patio. Built-in misters ensure comfort on sunny days. The motorized solar shades and an electric awning expand your outdoor entertainment options. A convenient full bathroom with exterior access completes the poolside amenities. The large front patio, paved in travertine, features built in misters and is gated for your privacy. Step inside to discover a beautifully appointed interior featuring a spacious dining room with a butler's pantry, perfect for hosting your family and friends. see more.. Step inside to discover a beautifully appointed interior featuring a spacious dining room with a butler's pantry, perfect for hosting your family and friends. The large kitchen, with a walk-in pantry and huge island, opens to the great room, which is highlighted by a stacked stone fireplace. Upstairs, the expansive owner's suite beckons with a private sitting area overlooking Ludden Mountain. Recently renovated, the ensuite bathroom is a sanctuary with a free-standing tub, his and her vanities, and spacious closets. A large loft area offers additional living space, while a full-size laundry room with cabinetry adds convenience. Four additional bedrooms include a jack-and-jill bathroom, ideal for family or guests, and a fourth and fifth bedroom split by the spacious loft, overlooking the city lights, near an office nook for added flexibility. Don't forget to watch the hot air balloons from front balcony! The 3 car garages are split car and feature epoxy floors, extended length, built-in storage and EV charger. You will also find the 75 gallon water heater and whole house filtration. This home is not just about luxury, but also functionality with modern upgrades including an EV charger, solar system, exterior ceramic paint for energy efficiency, solar shades, and updated AC. Recently refreshed interiors with fresh paint complete the picture of this well-maintained property. Experience the pinnacle of Arizona living in this home, where every detail has been carefully considered for comfort, convenience, and style. Don't miss your chance to own this exceptional residence in one of Phoenix's most desirable neighborhoods.

73 W Lewis Avenue Phoenix, AZ 85003

$1,275,000
3 Beds
3 Baths
3,156 SqFt
Status Active
MLS # 6750614
Property Type Single Family Residence
Price Type --
Welcome to Willo!! Discover this enchanting 3 bedroom, 3 bathroom Bungalow in the Willo Historic District, a testament to architectural grace and modern comfort. Built by A L Johnson in 1925, this home spans a generous 2492 sf + a 664 square foot basement. The property also includes a detached two-car garage. The home's facade boasts classic design elements such as river rock porch details and decorative trim, meticulously preserved to honor its historical significance. Step inside to a world where heritage meets contemporary living, highlighted by a mix of newly refinished hardwood, tile, and carpet flooring that complements the abundance of natural light and exquisite details found throughout. A large front porch welcomes you, leading to a versatile flex roo ideal as a study or office adjacent to a formal living room with a striking brick fireplace. This opens to an elegant dining room adorned with stunning stained glass windows, creating a perfect backdrop for memorable gatherings. The kitchen is a chef's delight, equipped with stainless steel appliances and ample storage. The family room is bright and airy, fostering a perfect setting for relaxation or entertainment. Upstairs, the master suite is a retreat within itself, featuring a remarkable window and ceiling design, a custom-tiled bathroom with dual sinks, walk-in shower, standalone tub, and two closets. Two additional bedrooms and bathrooms offer spacious and beautifully detailed accommodations. The basement is an ideal space for a den, home theatre, or game room, offering additional flexible living space. This amazing home even has all new windows. Step outside to a backyard oasis complete with lush landscaping, a swimming pool, spa, and pergola perfect for enjoying the outdoors in privacy and style. As one of the first historic districts, Willo is steps away from the light rail, incredible dining, culture and amenities Phx offer. This home was featured in the Willo Historic District Home Tour of 2024. It is not just a residence but a piece of history ready to be cherished by its new owners. Embrace the blend of historical charm and modern convenience in this truly gorgeous landmark home.

8861 W Hatfield Road Peoria, AZ 85383

$1,275,000
5 Beds
4 Baths
3,513 SqFt
Status Active
MLS # 6754452
Property Type Single Family Residence
Price Type --
Wow, just WOW! Incredible property with breathtaking mountain views! Be greeted by a great curb appeal w/manicured desert landscape, ample courtyard w/welcoming iron gate, and a sided 4-car garage w/paver driveway. Home exudes elegance throughout showcasing pre-wired surround sound, abundant natural light, a designer palette, and tasteful flooring - tile & wood in all the right places. Discover the thoughtfully laid-out open floor plan, making entertaining a bliss! The gourmet kitchen is a cook's delighting, featuring high-end SS appliances w/cooktop gas, beautiful staggered cabinetry, recessed & pendant lighting, a pantry, glass tile backsplash, and a big island with a breakfast bar. You'll love the separate family room paired with a fireplace, dry bar, & multi-sliding doors to the back Enter the large main bedroom to find outdoor access and a lavish ensuite that boasts dual granite sinks, a soaking tub, a shower w/dry-off area, & a walk-in closet w/built-ins. One secondary has its own bathroom for added comfort. But the true highlight is the spacious, RESORT-STYLE backyard! The space is an entertainer's dream, featuring a covered patio, well-lavers, putting green, play area, Pergola, misting system, gas fire pit, mature trees, horseshoe pit, and a sparkling pool w/spa combo for year-round enjoyment. This gem is a RARE find! Luxurious living at its finest!

1615 W Mandalay Lane Phoenix, AZ 85023

$1,275,000
3 Beds
3 Baths
3,684 SqFt
Status Active Under Contract
MLS # 6662837
Property Type Single Family Residence
Price Type --
Amazing Mountaintop home with incredible mountain and city views! Located in the gated Moon Mountain Vistas community this 3-bedroom 3 bath with an additional office will take your breath away. The property is over 1 acre on a mountain, and includes indoor/outdoor living spaces, a custom outdoor BBQ center, and outdoor fireplace. The serenity of the newly updated infinity pool and outdoor entertainment area welcomes you and your guests as you enjoy the beautiful Arizona sunsets. The interior of the home has been updated with new appliances, new carpet and new paint. The roof and water heater have also been recently replaced. The only thing missing is you!

5731 E Claire Drive Scottsdale, AZ 85254

$1,275,000
5 Beds
3 Baths
3,549 SqFt
Status Active Under Contract
MLS # 6706685
Property Type Single Family Residence
Price Type --
Discover luxury living in Scottsdale's coveted ''magic zip code'' 85254 with this stunning 5-bedroom, 3-bathroom home with no HOA. Perfect for golf enthusiasts and those seeking a high-end residence, this home offers resort-style amenities and exceptional comfort. The sleek, modern kitchen features expansive countertops and a coffee bar. The open-concept living area is designed for relaxation, while the formal dining room provides ample space for entertaining. A spacious games room with a bar adds to the home's entertainment options. The private backyard oasis includes a covered dining and seating area, gas BBQ grill, and fire pit. Enjoy the saltwater pool and luxury hot tub for the ultimate in relaxation. Make this your next home or investment property! New Roof in 2022! Discover luxury living in the heart of Scottsdale's coveted magic zip code 85254 with this stunning 5-bedroom, 3-bathroom home. Perfect for golf enthusiasts and those seeking a high-end residence, this property offers resort-style amenities and exceptional comfort. The sleek, modern kitchen features expansive countertops and a coffee bar, perfect for morning routines. The open-concept living area is designed for relaxation, while the formal dining room provides ample space for entertaining. A spacious games room with a bar adds to the home's entertainment options. Step outside to your private backyard oasis, complete with a covered dining and seating area, gas BBQ grill, and fire pit. Enjoy the fully-fenced saltwater pool and luxury hot tub for the ultimate in relaxation. Located just minutes from central Scottsdale attractions, this home offers convenience and style. Kierland Commons is a short 7-minute drive, TPC Scottsdale is only 11 minutes away, and the cultural landmark Taliesin West is a 19-minute drive. Additionally, this home is not part of an HOA, making it a fantastic option for short-term rentals. Experience the best of Scottsdale living with unparalleled comfort and elegance. Make this your next investment or personal residence!

18381 N 93rd Street Scottsdale, AZ 85255

$1,275,000
4 Beds
3 Baths
2,563 SqFt
Status Active Under Contract
MLS # 6751337
Property Type Single Family Residence
Price Type --
Beautiful family home in the highly coveted DC Ranch community. This is one of the few homes in the neighborhood with a private lot that backs to a wash with views of the McDowell mountains. This 4 bedroom and 3 full bath home features gorgeous hardwood floors, stainless steel appliances, white kitchen and open floor plan. The backyard boasts a large heated pool/spa and brand new turf. Upstairs offers 2 guest bedrooms and a loft area for the kids. The spacious primary suite has a large walk in shower and balcony with unobstructed mountain views. This gated neighborhood features 2 large parks offering plenty room for outdoor play and gatherings. You will also have access to the DC Ranch community pools, tennis/pickleball courts, and fitness center. Conveniently located close to Market Street, DC Ranch Crossing, the 101 freeway, and world class restaurants, shopping, golf and hiking.

15410 N 60th Street Scottsdale, AZ 85254

$1,275,000
4 Beds
3 Baths
2,883 SqFt
Status Active Under Contract
MLS # 6766387
Property Type Single Family Residence
Price Type --
Welcome to your dream retreat in the magic 85254 zip code! This fully furnished, designer-crafted home is a thriving Airbnb with back-to-back bookings, making it an excellent investment opportunity! Just minutes from Kierland Shopping Center, you'll enjoy convenience and luxury in one package. Step inside to discover gorgeous modern finishes that create an inviting ambiance. The outdoor space is an entertainer's dream, featuring a sparkling pool, relaxing hot tub, and a putting green. Stay active on the sport court, perfect for basketball or pickleball. The large covered outdoor kitchen is ideal for hosting gatherings, while the kiva-style fireplace sets the scene for cozy Arizona evenings. Additional highlights include a spacious open layout, ample natural light, and luxurious bedrooms!

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