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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15312 E Verbena Drive Fountain Hills, AZ 85268

$1,200,000

3 Beds

2.5 Baths

2,741 SqFt

Status Active

MLS # 6780433

Property Type Single Family Residence

Price Type --

Built in 2016, this stunning Fountain Hills home offers modern luxury and a thoughtful layout. Featuring a split floor plan with 3 bedrooms, 2.5 baths, a dedicated office, and a spacious 3-car garage, it provides both style and functionality. The open-concept kitchen, complete with high-end appliances and a wine cooler, is perfect for entertaining, while plantation shutters add charm throughout. Outside, enjoy a solar-heated saltwater pool set against breathtaking desert views. The AC system is an energy efficient 5 zone Carrier HVAC System. With seamless indoor-outdoor flow and high-end finishes, this home is a standout in a desirable Arizona community.

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6938 E Exeter Boulevard Scottsdale, AZ 85251

$1,200,000

2 Beds

2 Baths

2,300 SqFt

Status Active

MLS # 6780608

Property Type Townhouse

Price Type --

This lovely 2 bedroom / 2 bath + office townhome is perfectly situated to enjoy the best Scottsdale and Arcadia have to offer. Walking distance to the best shopping and restaurants in AZ- close to Fashion Square, Camelback Mountain, golf, hiking, and 20 minutes to the airport. Private office space overlooks the rear patio with built in barbecue which is ideal for entertaining or just relaxing in the warm AZ weather. This turn-key property is ideal as a second home or for busy professionals or retirees who want upscale and low maintenance lifestyle. Only 30 homes in exclusive Villa D'Este and they rarely come available- Don't miss this opportunity to make this home your own!

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37269 N 100th Place Scottsdale, AZ 85262

$1,200,000

3 Beds

3 Baths

3,130 SqFt

Status Active Under Contract

MLS # 6761023

Property Type Single Family Residence

Price Type --

Private and Peaceful. This lovely home in the intimate gated community of Montecito at Mirabel is tucked away on nearly an acre of beautiful high Sonoran Desert landscape. Pavered driveway, walkways and extended patios add to the serene setting. Backing to acres of natural area open space, this desirable open concept floor plan offers the ultimate indoor/outdoor living experience. The large great room includes a wall of disappearing glass doors and remote sun shades. Beautiful built-in cabinet on one wall includes 75'' TV and electronics along with room for your books and special art pieces. Stainless appliances, Wolf gas cook top, generous pantry, extended wood cabinetry with granite counters complete the large eat-in kitchen. Separate Primary Suite has double door access to the back patio, plantation shutters, walk-in and linen closets and bath with tub and walk-in shower. The Two guest suites include Jack & Jill bath and walk-in closets for plenty of storage. Office/den has a separate double door exit to front walk way, plantation shutters plus a third bathroom in the nearby hallway. There's a lovely separate Dining Room off the foyer and a Butler's Pantry close by. Enjoy quick and easy access to North Scottsdale, Carefree and Cave Creek shopping and dining. This location is truly great for those who enjoy boating etc. year round at Bartlett Lake to the east or Lake Pleasant to the west or explore the Tonto National Forest with your 4 X 4 rigs.

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16121 E Ridgestone Drive Fountain Hills, AZ 85268

$1,200,000

2 Beds

2.5 Baths

1,865 SqFt

Status Active Under Contract

MLS # 6754268

Property Type Townhouse

Price Type --

This Overlook at Firerock masterpiece offers incredible mtn and golf views & is a dream come true! Lovely façade boasts a 2-car garage w/glass doors, paver driveway, & stone accents. You'll find a meticulously designed interior w/clean lines that exudes modern sophistication. Harmonious open floor plan is complemented by tile flooring, surround sound, a wall-mounted fireplace, & large sliding glass doors leading to the back patio. Stunning kitchen showcases recessed & pendant lighting, a plethora of cabinetry, quartz counters, a prep island w/a breakfast bar, stylish tile backsplash,& SS appliances, which include wall ovens & cooktop gas. Grand owner's retreat provides plush carpet, direct outdoor access, an ensuite w/dual sinks, make-up desk, an enclosed glass shower, & a walk-in closet. Wonderful backyard features a covered patio, built-in BBQ, fireplace, and a refreshing spa/spool (app to control the spool). Large powered shade to cover large stacking door. What's not to like? You must see it in person to fully appreciate its beauty! There is a sound system with 2 zones (one for inside and one for outside). RO Water System, Water Softener, TV Hookup in Primary bedroom.

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5420 E Skinner Drive Cave Creek, AZ 85331

$1,200,000

4 Beds

3 Baths

2,450 SqFt

Status Active Under Contract

MLS # 6757263

Property Type Single Family Residence

Price Type --

Welcome to your dream home, an amazing property built in 2020, set on 1.27 acres with an RV garage and no HOA! You'll love the layout of this home that exudes elegance and comfort. Friends and family will enjoy gathering in the open-concept kitchen, which features an oversized stone island, a lovely backsplash, SS appliances, and an abundance of natural light. The home chef will appreciate the convenience of a walk-in pantry, a gas range, a wall oven, and a built-in microwave. Your spacious primary bedroom, complete with an ensuite bathroom featuring dual sinks, serves as the ideal retreat. Two additional bedrooms share a jack & jill bathroom, while a fourth bedroom offers flexibility, along with a formal dining area that could easily be transformed into an office or game room. The RV... Garage is 1,250 sq ft (25' x 50') w/15' ceilings and a Bathroom! The attached 3-car garage is equipped with ceiling-mounted storage racks. Whether you're relaxing on your front or back patio, you'll delight in the desert vibes and the occasional visit from wildlife. You'll feel a world away, yet be just minutes from shopping, dining, and the 101. Design your ideal outdoor space - there's ample room for a pool, casita/ADU, a pickleball court, or horse enclosures; the possibilities are endless! A 12' RV gate provides convenient access to the backyard. Additional features include Hunter Douglas window treatments throughout (light filtering AND room darkening in bedrooms), adjustable shelving in the pantry and all closets, low-voltage lighting, a laundry room w/utility sink, citrus trees and more! Water softener was replaced in 2023.

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744 E County Down Drive Chandler, AZ 85249

$1,200,000

4 Beds

3.5 Baths

3,600 SqFt

Status Active

MLS # 6715671

Property Type Single Family Residence

Price Type --

Welcome to your dream home in the highly sought-after gated community of Fieldstone Estates! This stunning single-level residence, situated on a premium 1/3-acre corner lot, offers unparalleled privacy with no neighbors behind, overlooking lush greenbelts. Step through the charming courtyard, complete with a cozy paver patio and gas fireplace, setting the perfect tone for outdoor relaxation and entertaining. Inside, the home boasts a beautifully remodeled designer kitchen featuring bright white custom cabinetry, elegant quartz countertops, a striking quartzite island, marble tile backsplash, and stainless steel appliances. Gourmet chefs will appreciate the dual ovens, gas cooktop, deep under-mount sink, and the convenient walkout to a built-in gas BBQ for easy alfresco cookin g. The split floor plan provides ultimate privacy with the luxurious owner's suite tucked away for serene living. Indulge in the spa-like bathroom with a soaking tub, walk-in shower, dual vanities, and an expansive walk-in closet, with a connected den or office for convenience. Guests or teens will love the private guest suite with an ensuite bath, while two additional bedrooms share a Jack-and-Jill bathroom. The well-appointed laundry room features extra storage, a farm sink, and stunning quartz counters for added convenience. Outdoors, this home truly shines with a resort-style backyard. Enjoy year-round fun in the heated Pebble Tec pool with a Baja shelf, entertain guests at the built-in bar top, or relax under the extended pergola on the ivory limestone paver patio. There's plenty of room for lounge chairs, and even a cabana! The 3-car epoxy-coated garage with built-in cabinetry is perfect for large vehicles, hobbies, or extra storage. Plantation shutters, tile floors, and surround sound enhance the beauty and functionality of this home. Plus, enjoy all the community has to offer with tree-lined walking and biking paths, a playground, and peaceful green spaces. Don't miss the opportunity to own this gem in Fieldstone Estates!

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27000 N Alma School Parkway Unit 2034 Scottsdale, AZ 85262

$1,200,000

3 Beds

3 Baths

2,627 SqFt

Status Active Under Contract

MLS # 6773564

Property Type Townhouse

Price Type --

Incredible opportunity to own this highly customized Townhouse in Pinnacle Pointe. Located directly across from Four Seasons Scottsdale, Troon North with views out every window, this 2627 sqft, 3 bed, 3 bath Townhouse offers the ease of lock-n-leave living while giving you some of the best views in the Valley. This property is loaded with custom features including a private wood paneled handicap accessible elevator, wood floors, open chef kitchen with stainless steel KitchenAid appliances, granite countertops, accent lighting, walk-in pantry, and large laundry room. From the open great room you'll enjoy sunsets and city lights from your HUGE double retractable sliding window systems, and wrap around patio with newly installed motorized sunshades.

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8612 E San Felipe Drive Scottsdale, AZ 85258

$1,200,000

3 Beds

2 Baths

2,397 SqFt

Status Active

MLS # 6772965

Property Type Single Family Residence

Price Type --

WOW! This outstanding masterpiece in the popular McCormick Ranch is truly a dream come true! Attractive curb appeal w/a 2-car garage & easy-care landscape is just the beginning. With its meticulously maintained interior, this haven dazzles w/a perfect blend of tile & wood flooring, delightful archways, soothing palette, and high vaulted ceilings. Harmonious living & dining room invites you to unwind, while the HUGE great room, paired with a cozy fireplace & a wet bar, is excellent for entertaining & everyday living. Open-concept kitchen features abundant cabinetry topped w/crown moulding, an island, travertine backsplash, granite counters, & SS appliances. Surely to impress w/the bright & airy primary retreat, showcasing outdoor access, an ensuite w/dual sinks, & a walk-in closet. Secondary bedrooms offer sizable closets & plantation shutters. The stunning backyard provides a covered patio, refreshing pool, & spa for endless summer fun. You won't be disappointed!

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51008 W Pete Road Aguila, AZ 85320

$1,200,000

2 Beds

2 Baths

2,154 SqFt

Status Active

MLS # 6378759

Property Type Single Family Residence

Price Type --

This Remarkable Property features a completely renovated House, a 60' x 60' Hangar PLUS 60' x 80' Hangar in a gorgeous setting! House features custom Hickory Cabinetry & solid hand-carved Hickory doors throughout. Travertine Tile countertops, Tibouron Brunito Ceramic Tile, Custom Ironwork and many other luxurious amenities. State Land across the street ensures endless VIEWS of mountains & wildlife. The professionally landscaped property showcases over 200 Trees, Shrubs & Bushes! Taxi from your fully-heated & air-conditioned Hangars to the runway for flying 300+ days per yr. Community has a 3,906' paved, lighted runway, paved taxiways/streets & community center for great gatherings. Just imagine enjoying your special get-a-away or full-time residence!

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11619 N 12th Place Phoenix, AZ 85020

$1,200,000

5 Beds

3.5 Baths

3,917 SqFt

Status Active

MLS # 6641433

Property Type Single Family Residence

Price Type --

Welcome to this stunning, newly remodeled 3,917 sq foot residence, seamlessly blending modern luxury with timeless elegance. Step into an open-concept living space flooded with natural light, highlighting the meticulous craftsmanship throughout. The gourmet kitchen boasts state-of-the-art appliances, quartz countertops, and a spacious island, perfect for culinary enthusiasts. Relax in the expansive master suite featuring an inspired ensuite bathroom and custom walk-in closets. Four additional bedrooms offer comfort and versatility, while the remodeled bathrooms showcase designer finishes. The home's heart is a spacious family room, ideal for gatherings and entertainment. This residence is designed for indoor-outdoor living, with glass doors opening to a private Oasis.

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1540 E Sharon Drive Phoenix, AZ 85022

$1,200,000

4 Beds

3.5 Baths

3,900 SqFt

Status Active

MLS # 6657328

Property Type Single Family Residence

Price Type --

Make yourself at home in Moon Valley's privately gated Views at Mountainside enclave! Enter this custom home through the enchanted courtyard with the peaceful sounds of the water feature as you enjoy the view from the front patio. When you open the door to this home, you will see and feel a bright and inviting atmosphere complete with elegant soaring ceilings, travertine flooring, dedicated formal dining and two spacious living rooms. The eat-in kitchen provides granite countertops, ample custom cabinetry, double ovens, and a cozy breakfast nook. Utilize the wet bar as you host effortlessly with two large back covered patios, a built in BBQ and a sparkling swimming pool wrapped with captivating views of the surrounding Lookout and Phoenix Mountain Preserve. The expansive primary suite has the perfect space for reading, working out or simply enjoying the mountain views. The primary bathroom has a large soaking tub, dual vanities and a large walk-in closet. Enjoy the perks of an extended 3-car garage with additional storage. This home has only had one owner and offers easy access to a wide variety of world renowned golf courses, hiking + biking trails, restaurants, Paradise Valley Mall and Mayo Clinic. This gem truly has it all!

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3130 S Weeping Willow Court Gold Canyon, AZ 85118

$1,200,000

3 Beds

3 Baths

2,418 SqFt

Status Active

MLS # 6665810

Property Type Single Family Residence

Price Type --

FORMER MODEL located in prestigious Superstition Mountain. 3 bedrooms and 3 baths. OPEN GREAT ROOM, DINING AREA, KITCHEN LAYOUT! NEWLY REMODELED! Gourmet kitchen with Viking appliances, quartz countertops, extended 11'' island, new solid wood cabinets. Two new high efficient AC's and furnaces. VIEW FEATURE SHEET IN THE DOCUMENT SECTION FOR A FULL LIST OF FEATURES AND UPGRADES. Multiple patios for relaxing, dining and entertaining! SE orientation offers abundant sunshine with beautiful sunrises and sunsets. Premium lot abuting a wash area and overlooking the 17th tee box of the Lost Gold course. 24 HOUR GUARD GATED COMMUNITY. Two Jack Nicklaus golf courses! Not a golfer? Enjoy pickle ball, bocce, tennis, hiking and many other amenities. Country Club living at its best. Club amenities under a separate agreement. 35 minutes to Sky Harbor and 20 minutes to Mesa Gateway airports. Buyer and buyer's agent to verify all pertinent information including square footage.

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