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

Listing types.

For Sale

For Rent

Land

Multifamily

Commercial

Location Search Nearby

BedsAny1+2+3+4+5+6+

BathsAny1+2+3+4+5+6+

Price MinAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Price MaxAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Advanced Options

Property TypeAnyApartmentManufactured HomeSingle Family ResidenceTownhouseTwin Home

School District

Address, MLS# or Keyword

Home SizeAny600 ft2800 ft21,000 ft21,200 ft21,400 ft21,600 ft21,800 ft22,000 ft22,200 ft22,400 ft22,600 ft22,800 ft23,000 ft23,500 ft24,000 ft24,500 ft25,000 ft25,500 ft26,000 ft2

YearAny2024+2023+2022+2021+2020+2019+2018+2017+2016+2015+2014+2013+2012+2011+2010+2009+2008+2007+2006+2005+2004+2003+2002+2001+2000+1999+1998+1997+1996+1995+1994+1993+1992+1991+1990+1980+1970+1960+1950+1940+1930+

Distressed

Open House

Location Search Nearby

BedsAny1+2+3+4+5+6+

BathsAny1+2+3+4+5+6+

Price MinAny$500$600$700$800$900$1,000$1,100$1,200$1,300$1,500$1,600$1,700$1,800$1,900$2,000$2,250$2,500$2,750$3,000$3,250$3,500$3,750$4,000$4,500$5,000$5,500$6,000$6,500$7,000$7,500$8,000$8,500$9,000$9,500$10,000

Price MaxAny$500$600$700$800$900$1,000$1,100$1,200$1,300$1,500$1,600$1,700$1,800$1,900$2,000$2,250$2,500$2,750$3,000$3,250$3,500$3,750$4,000$4,500$5,000$5,500$6,000$6,500$7,000$7,500$8,000$8,500$9,000$9,500$10,000

Advanced Options

Property TypeAnyApartmentManufactured HomeSingle Family ResidenceTownhouseTwin Home

School District

Address, MLS# or Keyword

Home SizeAny600 ft2800 ft21,000 ft21,200 ft21,400 ft21,600 ft21,800 ft22,000 ft22,200 ft22,400 ft22,600 ft22,800 ft23,000 ft23,500 ft24,000 ft24,500 ft25,000 ft25,500 ft26,000 ft2

YearAny2024+2023+2022+2021+2020+2019+2018+2017+2016+2015+2014+2013+2012+2011+2010+2009+2008+2007+2006+2005+2004+2003+2002+2001+2000+1999+1998+1997+1996+1995+1994+1993+1992+1991+1990+1980+1970+1960+1950+1940+1930+

Location Search Nearby

Lot SizeAny1+ Acres2+ Acres3+ Acres4+ Acres5+ Acres6+ Acres7+ Acres8+ Acres9+ Acres10+ Acres20+ Acres30+ Acres40+ Acres50+ Acres

Price MinAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Price MaxAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Advanced Options

Neighborhood

Address, MLS# or Keyword

Location Search Nearby

Price MinAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Price MaxAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Advanced Options

School District

Address, MLS# or Keyword

YearAny2024+2023+2022+2021+2020+2019+2018+2017+2016+2015+2014+2013+2012+2011+2010+2009+2008+2007+2006+2005+2004+2003+2002+2001+2000+1999+1998+1997+1996+1995+1994+1993+1992+1991+1990+1980+1970+1960+1950+1940+1930+

Location Search Nearby

Lot SizeAny1+ Acres2+ Acres3+ Acres4+ Acres5+ Acres6+ Acres7+ Acres8+ Acres9+ Acres10+ Acres20+ Acres30+ Acres40+ Acres50+ Acres

Price MinAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Price MaxAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Advanced Options

Address, MLS# or Keyword

YearAny2024+2023+2022+2021+2020+2019+2018+2017+2016+2015+2014+2013+2012+2011+2010+2009+2008+2007+2006+2005+2004+2003+2002+2001+2000+1999+1998+1997+1996+1995+1994+1993+1992+1991+1990+1980+1970+1960+1950+1940+1930+

View As: Thumbnails List

Sort by: Select Price, Low to High Price, High to Low Newer Listings First Older Listings First Open House Date

1300 E Penedes Drive Gilbert, AZ 85298

$973,360

4 Beds

3 Baths

2,568 SqFt

Status Active

MLS # 6781509

Property Type Single Family Residence

Price Type --

Gorgeous Desert Ranch style home in Gilbert's new and desirable Waterston Central Canastero Community. Enjoy access to the endless amenities including a gated entry, biking and walking paths, a clubhouse, community pool, spa, and a playground. The home boasts designer features throughout including a gas cooktop and double ovens as well as stacked upper cabinetry and quartz countertops in the kitchen, primary bath and bath 3. Other highlights include a 12' multi-panel slider in the Great Room, Bryant Maple Icy Avalanche cabinetry, frameless walk-in shower with Raincan shower head in the primary bath, laundry room sink with base cabinetry, wood look plank tile and carpet flooring, iron entry door, matte black plumbing and lighting fixtures and pavers on the driveway and front porch.

View Property

4655 E Alma Lane Prescott Valley, AZ 86314

$972,940

3 Beds

2.5 Baths

2,189 SqFt

Status Active

MLS # 6710950

Property Type Single Family Residence

Price Type --

Another beautiful Capstone Home in the most sought after community in Prescott Valley ''Jasper''. This home is MOVE-IN-READY and now comes with washer, dryer & refrigerator and incredible backyard landscaping! Capstone Homes most popular floorplan, in the Farmhouse elevation. Oversized 3 car garage, 12' ceilings in the entry, kitchen, dining, and living room, 10' ceilings in all other areas. Transom windows. Freestanding tub in owners' bath, tile shower, hall bath tile wainscoting. Quartz countertops, hardwood flooring throughout, berber carpet in the bedrooms. Washer Dryer and Refrigerator included. This home backs to the Iron King trail on an oversized lot. A must see! This home

View Property

6739 N 9th Drive Phoenix, AZ 85013

Open House

$972,797

3 Beds

2.5 Baths

2,045 SqFt

Status Active

MLS # 6778145

Property Type Single Family Residence

Price Type --

Welcome home to Ocotillo Lane! Step into this contemporary, single-level new home with thoughtfully designed exterior architecture. Once inside you will be impressed by the vaulted ceilings and 16-foot sliding glass door in the great room, creating a perfect space for entertaining. The centerpiece is the gourmet kitchen, equipped with gas appliances, including a luxurious 42'' built-in refrig, quartz countertops, upgraded stacked cabinetry for extra storage & quartz backsplash to compete this modern look. Luxury extends into every corner of this home, from the eng wood and tiled floors to the tiled showers in all bathrooms. Spray foam insulation and a tankless gas water heater contribute to an impressive HERS score of only 43. Visit this beautiful home today!

View Property

6442 W Ruin Hill Loop Pine, AZ 85544

$970,000

3 Beds

4 Baths

2,240 SqFt

Status Active

MLS # 6767231

Property Type Single Family Residence

Price Type --

Live Your Mountain Dream in Portal IV! Luxurious Multi-Level Home with Breathtaking Views & Privacy Unparalleled Location: This stunning 2,240 sq ft multi-level home sits on a coveted .53-acre parcel in desirable Portal IV. Bordering the 15-acre HOA Nature Preserve, the property offers spectacular panoramic mountain views that will leave you breathless. Witness nature's majesty unfold with the four mild seasons, from your expansive wrap-around deck, Luxury Meets Functionality: Inside, discover a meticulously designed living space. The main level features a grand stone fireplace in the great room, accentuated by new floor-to-ceiling windows that seamlessly blend the beauty of the outdoors with the warmth of the interior. The kitchen boasts new granite countertops, a breakfast bar, and a propane range nestled amongst ample cabinetry. A conveniently located half-bathroom, large utility room with washer, dryer, new RO system, sink and new cabinets completes the main level. Down stairs are two bedrooms. The huge suite downstairs offers a private haven, featuring a fireplace and direct access to the serene backyard, where you can soak in the incredible views. The bedroom in the upstairs loft is very spacious and open. All three bedrooms boast the luxury of en-suite bathrooms for ultimate privacy. Two spacious garages with a new paver driveway allow parking for at least 6 vehicles. This property is a true haven for nature lovers. Encounter majestic eagles, deer, and elk roaming the surrounding area. Experience all four mild seasons in the captivating mountain community of Pine, AZ. Portal 4 has it's own water district that boasts a 250,000-gallon storage tank with a 2500-gallon compression tank, ensuring the community continuous water supply. Don't miss this rare opportunity to start living your dream in this extraordinary home. *The home is turn key-move in ready with all furnishings available on a separate agreement.*

View Property

1602 W Encanto Boulevard Phoenix, AZ 85007

New

$970,000

4 Beds

4 Baths

2,630 SqFt

Status Active

MLS # 6779154

Property Type Single Family Residence

Price Type --

Welcome to Del Norte Place, where charm and character meet in this stunning English Cottage-style home, complete with a basement and a detached guest house. Situated in the ''heart of the park'' the renowned Del Norte Place Historic Neighborhood, and recognized by local design publications for its timeless beauty and meticulous craftsmanship. With 3 bedrooms and 3 bathrooms, the main house of this home offers 2,150 square feet of thoughtfully designed living space. The spacious first-floor primary suite is a true retreat, while original wood floors and a cozy gas fireplace in the main living space adds warmth and character to the home. The kitchen and primary bath have been tastefully updated, with the primary bathroom featuring double sinks, a separate Jacuzzi tub and steam shower. But that's not all,this property also boasts a 200-square-foot finished basement, perfect for a home office, art studio, music room, yoga space, whatever fits your lifestyle. Just steps away, you'll find a 961-square-foot guest house with it's own living space, bedroom, full bath and kitchenideal for visitors or potential rental income. The 3-car detached garage offers plenty of storage and workspace, while the expansive corner lot provides room to play and entertain. Step outside to enjoy the inviting play pool and spacious private patioperfect for gatherings under the Arizona sun. Located between Encanto Park and Encanto Golf Course, and a variety of shops and restaurants, this home places you in the pulse of historic downtown Phoenix living. Embrace the opportunity to be part of this vibrant, sought-after community and experience the best of city living in a truly one-of-a-kind home.

View Property

4444 E Downing Circle Mesa, AZ 85205

$970,000

4 Beds

2.5 Baths

3,049 SqFt

Status Active

MLS # 6771664

Property Type Single Family Residence

Price Type --

Impressive home on over 1/3 acre home located in The Groves area of NE Mesa. Enter into the foyer overlooking the living/dining rms & den w/ large bright windows over looking the resort like backyard perfect for entertaining. Family room w/ gas fireplace, kitchen showcasing a 48'' Bertazzoni oven & stunning breakfast nook all surrounded by windows is located in the center of the home. 3 bedrooms split from the master bedroom. 2 large walk in closets in Master bath along w/ soaking tub and walk in shower. Exit to the backyard from master bedroom or family room. Large covered patio. Built in gas BBQ, fire pit, projector/movie screen & round concrete table/bench all under Ramada w/ special lighting, ceiling fans & misters, next to putting green. Lots of citrus/shade trees, park like feel

View Property

16694 N 106th Way Scottsdale, AZ 85255

$970,000

3 Beds

2 Baths

2,063 SqFt

Status Active

MLS # 6772057

Property Type Single Family Residence

Price Type --

Beautiful Sante Fe Territorial style home in exclusive McDowell Mountain Ranch. Close to walking trails Exceptionally well maintained home and pool. Back yard features a pebble surface pool and spa backing to common area. This home has a new roof in 2024 and, fresh exterior paint, newer water heater and remodeled bathrooms. This Samoa model is a wonderful great room plan with large open living spaces. Dining room and Primary bedroom feature bay windows. Large extended covered patio in back for entertaining. Kitchen features over sized cabinets, granite counter tops with an open island and breakfast bar. Large bonus room with wood look flooring can be a great office or exercise room. Primary bedroom is split from the other two bedrooms for privacy.

View Property

2411 S Wandervogel Way Portal, AZ 85632

$970,000

3 Beds

1.5 Baths

1,948 SqFt

Status Active

MLS # 6636290

Property Type Single Family Residence

Price Type --

Situated in the heart of Portal at an elevation of nearly 5,000 feet and within walking distance of Portal amenities, this 28-acre hilltop property offers stunning mountain views and features a 1,948-square-foot adobe brick home with a natural stone pool, 4 individual parcels (3 with utilities), and a newer above standard well with a depth of 600 feet that can be shared with the surrounding parcels. The underground utilities have an estimated investment value of roughly $300,000 in today's market. National forest land borders the property, and the seasonal creek is accessible by foot. Adding the property's charm is its historic significance - situated on a historic horse pass where Theodore Kraft of Kraft Foods and his wife Myrtle built their getaway. Cave Creek Canyon, affectionately known as Arizona's Little Yosemite, is just down the road. While the home does need some work, it offers a comfortable existing floor plan and potential for your creative ideas. Features include a master bedroom with a walk-in shower and a private entrance accessed from the back yard, ample glass doors and windows, an open living / dining room with fireplace, and tile flooring throughout. Previous plans were in place for a new master bathroom that opened to a backyard spa area. Don't miss this unique opportunity to manifest your dreams into reality!

View Property

15210 S 20th Street Phoenix, AZ 85048

$970,000

4 Beds

2.5 Baths

3,150 SqFt

Status Active

MLS # 6738033

Property Type Single Family Residence

Price Type --

Beautifully set on a hillside lot with spectacular mountain views in the Ahwatukee Foothills. Located on a cul-de-sac street with only six homes and no neighbors directly across from you--a truly private location. Home boasts a large, open floor plan with abundant natural light. New paint and new carpet throughout. One AC unit replaced in 2022 plus new roof installation in 2021. Pool in backyard with view fencing. This home is perfectly situated close to shopping, restaurants, award-winning Kyrene schools, South Mountain Preserve hiking trails and parks. Don't miss this incredible opportunity to own property in the highly desirable Cabrillo Canyon neighborhood!

View Property

12918 W San Juan Avenue Litchfield Park, AZ 85340

$970,000

4 Beds

3 Baths

2,919 SqFt

Status Active

MLS # 6745440

Property Type Single Family Residence

Price Type --

ENTERTAINERS DREAM HOME in the desirable Litchfield Vista Views neighborhood! Resort style back yard oasis with a sparkling pool, gas fireplace, built in BBQ, firepit, walking trail, putting green, large covered patio, lush landscaping, and fruit trees. Step inside to an open floor plan perfect for gatherings with family and friends, 10+ ft ceilings throughout, and a warm and inviting color palette. Stunning kitchen with a large island, granite countertops, gas stove, and SS appliances. Cozy up to the ambiance of the gas fireplace in the family room at the end of a long day and watch the beautiful Arizona sunsets. Plantation shutters throughout the home and a separate entrance off the guest bedroom. 3 car garage with built in cabinets and RV gate/parking. This home has it all and sits on .8 acres! Exterior painted 2023, solar panels installed 2022, NEW AC UNITS 2021, and small garage door replaced 2024. Surround sound inside and on back patio! SELLER IS OFFERING A $20,000.00 BUYER CREDIT with a full price offer.

View Property

10808 N 43rd Street Phoenix, AZ 85028

$970,000

4 Beds

2.5 Baths

1,885 SqFt

Status Active

MLS # 6756284

Property Type Single Family Residence

Price Type --

Welcome to this updated modern home situated on a premium 16,000sq.ft lot, located in the heart of the Paradise Valley Mall redevelopment corridor where convenience and high end amenities sit just around the corner. Featuring 4 bedrooms and 2.5 bathrooms, this open concept home offers a large living room and sitting area that flows nicely into your dining room and chef's kitchen, which includes a breakfast nook with separate back patio access. The primary bedroom is spacious with tons of closet space and updated dual vanity bathroom with walk-in shower. The pool was just completely redone with new pebble tec, pool equipment, pool heater and lights! The oversized backyard offers expansive covered patio space, large grassy area, sport court and plenty of room to add more amenities for your enjoyment. This is an awesome opportunity to own property in a great part of town and in a home that is move in ready!

View Property

6268 W Louise Drive Glendale, AZ 85310

$970,000

4 Beds

3 Baths

2,902 SqFt

Status Active

MLS # 6762446

Property Type Single Family Residence

Price Type --

Experience serene living on this exceptional waterfront lot, boasting panoramic mountain views and perfectly situated in a quiet cul-de-sac. The meticulously landscaped property features a tranquil lakeside seating area, a 2023 putting green, a private pool, and a heated spa for year-round relaxation. Entertain with ease, thanks to the custom-built-outdoor kitchen, complete with a BBQ, fireplace, and all the amenities for effortless gatherings. The stunning 2022 remodel includes a new roof, upgraded flooring, a complete kitchen and bathroom renovation, revitalized pool and spa, as well as fresh interior and exterior paint, complemented by modern lighting, and updated fixtures. Recent 2023 improvements include a new A/C unit and water heater ensuring added comfort and efficiency. Inside, the home radiates charm, featuring a wet bar in the family room, a convenient laundry chute, and a separate workshop in the garage. The thoughtfully designed layout offers four bedrooms upstairs and a laundry room on the lower level, providing seamless functionality. Nestled in a prestigious golf and lake community, this home is located near top-rated schools, scenic walking and biking trails, and a nearby conservation park with stunning hiking paths.

View Property