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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4562 N Chelsea Drive Buckeye, AZ 85396

$1,295,000

3 Beds

3 Baths

3,190 SqFt

Status Active

MLS # 6760906

Property Type Single Family Residence

Price Type --

Experience luxury living in this sleek and stylish Desert Prairie home, nestled within the sought-after Regent Hills enclave of Verrado. Boasting a modern flair, this custom residence offers the perfect blend of sophistication and functionality. Enjoy the convenience of proximity to the golf course, practice facility, shopping, dining, and schools. This meticulously designed home features stained concrete floors and euro finishes, creating an ambiance of contemporary elegance. The spacious great room floor plan, comprising 3 bedrooms and 3 baths, seamlessly integrates indoor and outdoor living. Large window walls invite natural light and showcase panoramic mountain views, providing a picturesque backdrop for daily living. Step into your backyard retreat to discover an oasis of relaxation.

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4122 E Burnside Trail Cave Creek, AZ 85331

$1,295,000

5 Beds

3.5 Baths

4,580 SqFt

Status Active

MLS # 6761338

Property Type Single Family Residence

Price Type --

Sophistication meets comfort in this beautiful residence. Situated on a sprawling corner lot, this beautiful home offers an unparalleled blend of elegance and functionality. Boasting a fully remodeled chef's kitchen stands with modern style and culinary excellence. Adorned with top-of-the-line appliances, custom cabinetry, and exquisite finishes, it seamlessly transitions into the open living spaces, creating an ideal environment for both everyday living and entertaining. Your spacious fitness room awaits you, a dedicated space designed to elevate your wellness routine. Your gym offers the perfect sanctuary to achieve your fitness goals without leaving the comfort of your home. The outdoor oasis with a resort-style pool and spa will be the focal point for gatherings for years to come!

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5112 N 32nd Place Phoenix, AZ 85018

$1,295,000

3 Beds

3 Baths

2,420 SqFt

Status Active

MLS # 6764328

Property Type Single Family Residence

Price Type --

Fabulous opportunity in Biltmore Heights to make this your own! Tucked away on a beautiful street with 10,237 sq ft lot with RARE GUEST HOUSE & FULLY TILED POOL. High vaulted ceilings & kitchen opens to great room. Kitchen features stainless steel counter tops, subzero refrigerator, Viking cooktop, & Bosch dishwasher. Kitchen has a dutch door that opens to the gated courtyard for beautiful weather days. Fabulous outdoor living with large covered patio, cozy fireplace, and built in BBQ area w/ sink. NEW AC unit in 2024. Main home is 2 beds/ 2 baths and guest house is 1 bed/1 bath. Storage shed on the south side of the home.

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8290 E Tailspin Lane Scottsdale, AZ 85255

$1,295,000

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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3823 Ridge Runner Way Wickenburg, AZ 85390

$1,295,000

3 Beds

3.5 Baths

3,024 SqFt

Status Active Under Contract

MLS # 6747412

Property Type Single Family Residence

Price Type --

This exquisite home, located in Wickenburg Ranch, spans over 3,000 square feet, offering a perfect blend of luxury and comfort. With 3 spacious bedrooms, each featuring its own ensuite bathroom, the home ensures privacy and convenience for all residents and guests. The property is set on a desirable golf course lot, providing stunning views and a serene atmosphere. The backyard is a haven for outdoor enthusiasts, complete with a putting green for golf practice and a large covered patio ideal for entertaining or relaxing in the shade. Inside, the home is adorned with elegant wood-look tile flooring throughout, combining beauty with low-maintenance durability. The highly upgraded kitchen is a focal point, with its granite counters and full backsplash, Monogram and Wolf appliances, beverage refrigerator, and even an extra electric circuit With plenty of counter space and cabinet storage as well as a pantry it is truly a chef's delight. All of the highly upgraded cabinetry has soft-close doors and drawers as well as pull-out shelves. The primary bathroom offers a spa-like experience, featuring a luxurious tub and a separate upgraded shower, split vanities and custom-designed linen cabinet. The 4' extended 3- car insulated garage has epoxy flooring, hanging storage racks, and a mini-split HVAC system along with outside access. The property is set on a large, premium, East-facing desirable golf course lot, providing wrap- around views and stunning sunrises. The backyard is a haven for outdoor enthusiasts, complete with a putting green and chipping area for golf practice, viewing area to take in the fairway and lake views, and a double-extended covered patio ideal for entertaining or relaxing in the shade. The landscaping around the property is beautifully designed, enhancing the home's curb appeal and providing a tranquil environment. This home is a true gem, offering a sophisticated lifestyle in a stunning setting. Additionally, the home includes a full home warranty plan valid until September 2027..

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2805 W Princeville Court Anthem, AZ 85086

$1,295,000

4 Beds

3.5 Baths

3,476 SqFt

Status Active

MLS # 6766141

Property Type Single Family Residence

Price Type --

WORLD CLASS VIEWS! TOP OF THE WORLD IN ANTHEM COUNTRY CLUB ON almost an ACRE and a half CUSTOM LOT (There are 9 of these custom lots and these homes are rarely for sale.) OVERLOOKS THE 18TH hole WITH 360 DEGREE MT. VIEWS and Golf Course Views. The lot is WOW and the views are even more WOW! 2 updated a/c's, Updated roof, Custom WINE CELLAR with iron door, granite counters, travertine floors, sculpture carpet, lots of water fun in the crystal clear blue pool and spa with grotto and swim up bar with seating in the pool and water features, fire pit, extended patio space and large raised view area, views all around! Stainless professional built-in appliances. Each bedroom has a private bathroom. PRIVATE, SERENE AND FABULOUS! ONE OF A KIND HOME with a real meandering driveway! (This is a pre 2013 Radisson model with the sunken wine cellar option, very cool!) FINALLY...a true opportunity to own a WOW VIEW property in Anthem Country Club for the most discerning Buyer! This home and its VIEWS will blow your socks off! Country Club Lifestyle with Resort Style Amenities...Anthem Country Club is managed by Club Corp which offers many great benefits to members that reciprocate around the world! Two 18 hole golf courses, Persimmons and Ironwood, designed by Greg Nash. 2 Pro shops, 2 sets of men's and women's lounges / locker rooms, 2 member restaurants, 2 gyms, 2 pools, 2 spas, several tennis courts, Gorgeous Ball Room for ongoing Member events and private events venues available as well, 2 Impressive guard gated entrances, all surrounded by breathtaking mountain and golf course views...you will love being a member of the Anthem Golf & Country Club!

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39101 N 26th Street Cave Creek, AZ 85331

$1,295,000

3 Beds

2.5 Baths

2,862 SqFt

Status Active Under Contract

MLS # 6736724

Property Type Single Family Residence

Price Type --

Exceptionally Energy efficient Home with Huge Resort Retreat backyard & Mountains you can almost touch!! Stunning Integra Energy-Efficient Block Custom home on over 1 acre. Just under 3,000 sq ft. Perfect size for your forever home. Roomy entertainers kitchen with Sub Zero built in refrigerator, GE Convection double ovens & range, Bosch dishwasher, kitchen island, built-in microwave, R/O system, roll-out shelving & large walk in pantry. Eat-in Kitchen breakfast area , Plus a Formal Dining room. First Class all the way professionally designed backyard oasis that Includes PIZZA over and a separate dance floor level. 25 year warranty Rhino paint exterior. RV spot with own 50 Amp hook up. 3 car extended garage with epoxy floor.

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6550 N 7th Street Phoenix, AZ 85014

$1,295,000

6 Beds

4.5 Baths

5,601 SqFt

Status Active

MLS # 6765697

Property Type Single Family Residence

Price Type --

Here's your chance to own something truly special in North Central—a home that sits on just under a half-acre and on one of the area's most sought-after streets. The main house offers over 4,000 sq. ft. of space, elegant stone floors, a stunning wrought iron staircase with hand crafted granite steps leading to the second story; has all been revamped in recent years. Remodeled bathrooms and a refreshed Arizona room offers new flooring and it's own cooling unit create a multitude of uses, includes separate kitchen hook-ups. The home is equipped with powerful HVAC systems, including two 4-ton units for the main house and a 1.5-ton split unit for the Arizona room. Tucked away in the back, the 1,540 sq. ft. guest house was originally built as an RV garage but has been thoughtfully transformed into an industrial loft style, 2-bedroom, 1-bath homeideal for guests, family, or even rental potential, includes a 3-ton AC unit. Out back, there's a wrap around diving pool, installed in 2014 and the pool pump was just replaced in 2023. For the car collector, this property offers parking for up to 12 vehicles, plus a 2-car garage. This is more than just a home; it's a rare opportunity to own a piece of North Central Phoenix with space, updates, and versatility that's hard to find.

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5135 W Alameda Road Glendale, AZ 85310

$1,295,000

5 Beds

3 Baths

3,749 SqFt

Status Active Under Contract

MLS # 6749254

Property Type Single Family Residence

Price Type --

Bring your toys! Stunning Tri-Level Home in Saddleback Estates on just under an acre with additional 3000sqft Garage & Fully owned 150kwh Solar System providing close to zero energy costs! Inside you will discover 5 bedrooms, 3 baths 2 living areas, formal dining and an extra flex room. Home features tile & wood flooring throughout, granite counters and cherry cabs in the kitchen, & a large master with private balcony equipped with a hot tub. Outside enjoy a covered patio overlooking a beautifully landscaped yard and sparkling pool that also is equipped with heater and chiller. The massive garage/workshop is equipped with A/C, heat, 3-phase electric, and R40 insulation in the walls and R55 in the roof. On top of having tons of character & storage this home is located near golfing, hiking water parks, plenty of dining options at the shops at Norterra and great schools like Sandra Day O'Connor. Only a short drive to both 101 and I-17 freeways. Check out additional upgrades attached in document section.

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7301 E 3rd Avenue Unit 401 Scottsdale, AZ 85251

Open House

New

$1,295,000

2 Beds

2.5 Baths

2,469 SqFt

Status Active

MLS # 6787949

Property Type Apartment

Price Type --

Sit back and enjoy the views from the giant wrap around balcony at this contemporary loft in the heart of downtown Scottsdale! This one of a kind property is sophisticated, luxury urban living at its finest. An entertainer's dream, this two story loft with a large open kitchen has an island to seat 10, formal dining area, and is walking distance to dozens of restaurants, shopping, art galleries, sporting events and more! Split bedroom concept with primary on the lower and secondary on upper level. Both attached to private, dual sink bathrooms,, massive walk in closets and their own washer/dryer setup. Interior is surrounded by 12ft windows with panoramic views, has an indoor fireplace, gated underground parking (4 spaces), community fitness center, heated lap pool, security and concierge.

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3044 N Ironwood Road Carefree, AZ 85377

Open House

$1,295,000

3 Beds

3.5 Baths

2,948 SqFt

Status Active

MLS # 6774944

Property Type Single Family Residence

Price Type --

SPECTACULAR BOULDERS PROPERTY REDONE TO PERFECTION. THIS 3 BEDROOM WITH 3.5 BATHROOMS IS REMODELED FROM ONLY THE BEST MATERIALS WOOD FLOORING,2 MASTER BATHROOMS WITH FANTASTIC MARBLE FINISHES BTFL KITCHEN WITH GRANITE FINISHES AND DECOR 6 BURNER GAS RANGE AND DECOR OVEN...FROM THE MOMENT YOU STEP OUT TO THE YARD WITH IMPRESSIVE BOULDERS GROUPINGS AND PLANTINGS AND FABULOUS POOL/SPA THAT IS PERFECT FOR PRIVACY AND PEACE AT THE END OF THE DAY.

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9144 E Pershing Avenue Scottsdale, AZ 85260

Open House

$1,295,000

4 Beds

2.5 Baths

2,969 SqFt

Status Active

MLS # 6737562

Property Type Single Family Residence

Price Type --

NEW PRICE !!! Wow! Remodeled in the last 2 - 4 years! 4 bedrooms, 2.5 baths, Very open floor plan with living room/formal dining room combination. Light and bright Island kitchen with stainless steel appliances, eat in breakfast nook & Quartz countertops opens onto the family room with a fireplace and Soaring ceilings! Downstairs master bedroom!!! 3 bedrooms and a huge loft upstairs! Luxury vinyl planking throughout the entire home! Sparkling fenced play pool and side yard hosts a putting green . Anderson windows, solar panels , refrigerator, washer & dryer included and more! You gotta see this one! Professional photos coming ! Move right in!

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