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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15852 E Tumbleweed Drive Fountain Hills, AZ 85268

$979,900 - 4Br/3Ba -  for Sale in Fountain Hills Az 601b Blk 1,2, Fountain Hills
Open House
New
$979,900
4 Beds
3 Baths
2,738 SqFt
Status Active
MLS # 6783831
Property Type Single Family Residence
Price Type --
Gorgeous Mountain VIEWS! Privacy & Tranquility are yours! Premium hillside location showcases sparkling updated Pool with Waterfall, large upper & lower covered patios and well manicured landscaping complete with beautiful metal garden artwork. Spacious main level offers Great Room with soaring Ceiling, remodeled Chef's Kitchen, Master Bedroom with updated Bath & 2 additional bedrooms. Lower level provides a cozy Family Room, bonus office/exercise or hobby area with storage room behind, and a large 2nd Master bedroom with sitting area. Top quality Vinyl plank flooring throughout. Block construction adds extra energy efficiency. Act quick on this awesome home!

1184 E Gleneagle Drive Chandler, AZ 85249

$979,601
5 Beds
3 Baths
2,824 SqFt
Status Active
MLS # 6748505
Property Type Single Family Residence
Price Type --
New Home! Quick Close! 5 Bedrooms and 3 Full Baths, 3 Car Tandum Garage. Tile Thruout, Quartz Counters, Framed Mirrors, Freestanding Tub, Large Shower New Gated Master Planned Community of 100 Homes. Tree lined Entry, with stone walls, oversized entry monuments, rustic gatehouse, and ranch style gates, opening up to a 3.2 acre Park. Large Homesites, and Extensively landscaped open space, will pay tribute to the properties history as a 40 acre working Earnhardt Family Ranch and retreat right here within the City limits. Easy access to the San Tan Freeway, I-10, and Hwy 87, located amidst top rated Chandler Schools, shopping, large employers and dining! (*Photos shown are of a Model Home of this floorplan, built offsite). Taxes are estimate Price includes Preferred Lender Incentiv

2689 S Rockwell Street Gilbert, AZ 85295

$979,500
4 Beds
3 Baths
2,862 SqFt
Status Active
MLS # 6760353
Property Type Single Family Residence
Price Type --
This luxuriously upgraded, move-in-ready home, situated on an expansive corner lot in a quiet cul-de-sac, will be sure to impress! Quick access to the 202, San Tan Mall Village and some of the most desirable school districts in Gilbert. The gourmet chef's kitchen is a standout, featuring double Bosch stainless steel ovens, a massive Cambria quartz island, custom cabinetry with under-cabinet lighting, crown molding, soft-closing drawers and pull-outs. The 3-car garage is equipped with built-in cabinets, an RO system, and a water softener. Throughout the home, you'll find beautiful wood-look plank tile. The backyard is perfect for entertaining with a heated pool and spa, built-in BBQ island, extended covered patio, and outdoor shower.

10815 N Spearfish Street Surprise, AZ 85388

$979,000
3 Beds
3.5 Baths
2,489 SqFt
Status Active
MLS # 6772799
Property Type Single Family Residence
Price Type --
JUST LIKE THE SONG,''THIS IS IT''! INTRODUCING THE MATTHEWS CRAFTSMAN HOME WITH A PLETHORA OF UPGRADES INSIDE AND OUT THAT'S NESTLED ON A CUL-DE-SAC PREMIUM LOT AT STERLING GROVE GOLF & COUNTRY CLUB IN BEAUTIFUL SURPRISE, ARIZONA! HOME IS LOCATED IN THE AGE-RESTRICTED 55+ COMMUNITY OF STERLING GROVE. THIS TOLL BROTHERS HOME HAS IT ALL! GREAT ROOM OPEN FLOOR PLAN WITH BEAUTIFUL BLACK CEILING BEAMS, 10 FOOT CEILINGS WITH RECESSED LIGHTING, TILE FLOORING THROUGHOUT, 90 DEGREE STACKABLE SLIDING GLASS DOORS, AND UPGRADED SHUTTER WINDOW TREATEMENTS! THE CHEF'S KITCHEN IS EQUIPPED WITH A BUILT-IN FRIDGE, GAS COOKTOP, DOUBLE WALL OVENS, OVERSIZED GRANITE WATERFALL EDGE FURNITURE KITCHEN ISLAND, GORGEOUS SOFT CLOSE KITCHEN CABINETS WITH PULLOUT DRAWERS, TILED BACKSPLASH AND QUARTZ COUNTERTOPS! THIS HOME IS 2,489 SQUARE FEET WITH 3 BEDROOMS (ALL ENSUITES), 3.5 BATHROOMS, 3 CAR GARAGE, OFFICE/STUDY ROOM WITH FRENCH DOORS, FORMAL DINING ROOM, LAUNDRY ROOM w/SINK AND UPPER/LOWER CABINETS. SPACIOUS MASTER BEDROOM SUITE WITH A SPA LIKE MASTER BATHROOM, WALK-IN RAIN SHOWER, GORGEOUS TILE TO CEILING, HIS AND HER SINKS, AND A CUSTOM WALK-IN CLOSET! OUTBACK IS YOUR VERY OWN OASIS AND OUTDOOR KITCHEN! RELAX IN YOUR REFRESHING SPOOL/SPA (HEATED), ENJOY YOUR FAVORITE DRINK AND SIT BY THE FIREPLACE AFTER PRACTICING ON YOUR 2 HOLE PUTTING GREEN! PLENTY OF ROOM FOR ENTERTAINING FAMILY AND FRIENDS INSIDE AND OUT! COME SEE FOR YOURSELF! SIDE NOTE: SPRAY FOAM INSULATION IN THE WALLS. WATER FILTRATION SYSTEM/WATER SOFTENER. SURROUND SOUND INDOOR AND OUTDOOR. BACK PATIO SCREEN (HAVANA SHADE MOTORIZED SCREEN). PLUMBED GAS LINE FOR FIREPIT. MASTER BEDROOM BUILT-IN CUSTOM CLOSET. ENSUITE #1: WALK-IN SHOWER. ENSUITE #2: SHOWER/TUB COMBO. ALL FURNITURE EXCEPT FOR THE MASTER BED IS AVAILABLE FOR SALE. ART WORK AND DECOR IS NOT AVAILABLE FOR SALE. Sterling Grove Golf & Country Club is a Gated Community w/24 Hour Guard Post. Great Opportunity to Enjoy on a daily basis so many Wonderful Amenities and Beautiful Views of the White Tank Mountains, Lakes, Ponds and Gorgeous Greens on your Walks, Jogs, Bike Rides! Amenities: TROON Managed Jack Nicklaus Design 18 Hole Golf Course, Tennis Courts, Pickleball Courts, Country Club, Resort Style Pools, Fitness Center, Spa, Restaurants, and Much More!

323 W Quartz Rock Road Phoenix, AZ 85085

$979,000
4 Beds
2.5 Baths
3,073 SqFt
Status Active
MLS # 6738918
Property Type Single Family Residence
Price Type --
Beautiful custom home situated on 1.25 acres with horse privileges and no HOA! The open floorplan is centered around the great room and gourmet kitchen with knotty alder cabinets, stainless steel appliances, gas cooktop & granite counters. The spacious primary suite offers double walk-in closets, plus an updated bathroom with jetted tub. There are 3 additional bedrooms plus an office/gym/craft room located between the garage bays. Oversized 3-car garage plus covered RV parking. Backyard has a covered patio, dog run, tortoise enclosure and plenty of room for a pool! Producing well is shared with one neighbor. Roof was recoated in 2022 and under warranty until March 2027. Located near Norterra for shopping & dining. Enjoy neighborhood access to miles of hiking, biking and horseback trails!

21637 N 59th Terrace Phoenix, AZ 85054

$979,000
3 Beds
2.5 Baths
2,052 SqFt
Status Active Under Contract
MLS # 6754037
Property Type Single Family Residence
Price Type --
Lightly lived in, low maintenance & highly efficient D.R. Horton 'McCormick' model home - the perfect blend of style & convenience! It features a tankless hot water system, 14-Seer Carrier AC, & synthetic turf backyard which sides open space behind for added privacy. Entertaining is made easy with the gourmet kitchen & expansive quartz counter island, 5-burner gas cooktop, under counter lighting, stunning pendant lights, surround sound speakers, & large walk-in pantry. This one-level home has no interior steps & 3-car tandem garage to stable multiple vehicles/toys w/ plenty of overhead storage. Located in the very popular Talinn at Desert Ridge - a gated development minutes from City North & Desert Ridge Marketplace, where shopping, entertainment, fine & causal dining collide. Skip the wait of building...this stunning move-in ready home is available now! [Builder had a $40,000 lot premium on this location]

4327 E Sands Drive Phoenix, AZ 85050

$979,000
4 Beds
2 Baths
2,252 SqFt
Status Active
MLS # 6757580
Property Type Single Family Residence
Price Type --
Make this beautiful move-in-ready home yours before the holidays! This former 3 bedroom turned into full 4 bedroom, single story, 3 car garage home with large low maintenance backyard and huge pool in highly desirable Desert Ridge community is a rare find in the area! Just minutes away from Desert Ridge Marketplace shopping and Scottsdale, this home boasts high ceilings, custom accent walls (including a fun wine feature), new flooring and it's been freshly painted throughout! The modern fixtures and kitchen updates make this the perfect entertaining home. It's roof and HVAC were replaced in the last several years so you can enjoy the perks of expensive updates already complete, in a fabulous established community!

1220 S Camino Cobre Drive Wickenburg, AZ 85390

$978,000
3 Beds
2 Baths
2,357 SqFt
Status Active
MLS # 6780662
Property Type Single Family Residence
Price Type --
Welcome to this exceptional home, designed to capture sweeping VIEWS of the town from its elevated vantage point. A private courtyard at the home's entrance is a welcoming touch and a tranquil spot to greet guests or enjoy a quiet morning. Once inside, you're greeted by soaring ceilings and beautiful exposed beams, creating an airy, open feel ideal for gatherings or peaceful evenings. For the home chef, the fully equipped kitchen awaits, with generous counter space, and a layout that makes cooking a joy. An inviting family room right off the kitchen offers a cozy retreat, perfectly balancing the grand openness of the home with a more intimate space to unwind. The primary suite is a lovely sanctuary, with direct access to the backyard where a large covered patio beckons for relaxing, entertaining, or simply soaking in the views. Outside, the fenced backyard enhances privacy and security, perfect for pets, gardening, or creating your own outdoor oasis. With a 3-car garage providing space for storage and hobbies, this property combines luxury, comfort, and functionalityall while keeping you connected to the beauty of its surroundings and the charm of town just a short drive away.

7575 W Gelding Drive Peoria, AZ 85381

$977,079 - 4Br/3Ba -  for Sale in Bella Pasa, Peoria
Open House
$977,079
4 Beds
3 Baths
2,650 SqFt
Status Active
MLS # 6772889
Property Type Single Family Residence
Price Type --
Bella Pasa, a gated enclave of 30 semi-custom homes in the perfect location! Our newest plan, a 4-bedroom, 2.5 bath single-level home with the Ultimate RV Garage- 44 ft long with a 16 ft ceiling, a 12x14 door with room for all the toys! Large north-facing lot, covered patio, multi-slide 'wall of windows' for indoor/outdoor living. LG appliances, 10 ft ceilings and 8 ft tall doors; upgraded electrical package and many upgrades, still time to select and personalize the interior finishes. Mid 2025 completion. $20,000 towards financing or additional upgrades.

259 W Forest Service Road Unit 249 Young, AZ 85554

$975,000
3 Beds
3 Baths
2,998 SqFt
Status Active
MLS # 6758228
Property Type Single Family Residence
Price Type --
Creek-front property in the middle of Tonto National Forest. This beautiful 3-bedroom 3- bath custom home sits on 1.1 exquisitely manicured acres bordering Haigler Creek. Too many design features to mention. Includes a 2 -car attached garage with extra-large sleeping loft. Fenced garden area. Irrigation system on the entire property with surface water rights to the creek. An additional 1-acre lot adjacent to the property is available. If you're searching for tranquility and comfort, don't miss out on this one-of-a-kind property in Arizona.

28306 N 158th Street Scottsdale, AZ 85262

$975,000
4 Beds
3.5 Baths
3,038 SqFt
Status Active
MLS # 6774290
Property Type Single Family Residence
Price Type --
Beautiful Luxury home by NEXTGEN Builders with views! To-Be-Built 4 Bedroom + office/den, and 3.5 Baths, High quality luxury build includes 2-car garage, plus 46' RV garage with 12x14' door. No HOA, Contemporary style front door, paver front sidewalk and 23' driveway, Quartz countertops at kitchen island, Stainless steel appliance package. Quartz counter tops throughout. All bedrooms have walk-in closets. Owner's suite has it's own bath with large entry shower, stand-alone tub, double sinks, and walk-in closet. 8' doors throughout, nicely finished. Energy efficient Spray foam insulation, 2x6 framed exterior, fully sheathed exterior, post tension foundation, & amazing views, Buyer to verify all facts & specs. Water is handled by shared well. Paved roads to property. Photos are of a Model.

14103 S 44th Avenue Laveen, AZ 85339

$975,000
3 Beds
3 Baths
2,975 SqFt
Status Active
MLS # 6710652
Property Type Single Family Residence
Price Type --
This is desert living with amazing mountain views, privacy, seclusion, peace and quiet! This includes the 1 acre lot south (APN: 300-04-036) of the house. Basement home with guest house/shop offers flexibility for various living/working arrangements! Perfect for horses, hobby enthusiast, multi gen living, basement offers a separate living level along with the detached building for extended family or vacation rental. Ideal for small business 1200sf unit located across wash with bridge, keeps home private and work separate! Think of the savings not having to pay for an additional work space or more than one home! NO HOA and centrally located close to freeway and access to the entire valley! Set at the base of the mountain/preserve, perfect quiet, peaceful setting to enjoy sunsets and natural desert life! This multifunctional property is for those nature lovers and those not wanting cookie cutter living. Chef Kitchen. Modernized interior. Located in the county with lower property taxes. If more space is needed, another lot north of house is available! See MLS No. 6708136

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