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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16837 S 18th Way Phoenix, AZ 85048

$970,000

5 Beds

3.5 Baths

3,430 SqFt

Status Active Under Contract

MLS # 6751148

Property Type Single Family Residence

Price Type --

Do you enjoy your privacy while being close to it all? This stunning home is situated in the coveted Foothills in Ahwatukee/Phoenix near freeway access and golf amenities. It boasts a large backyard with a sparkling pool for your quiet retreat or for frequent entertaining. Nestled within a foothill, the home has no neighbors to the north or east of the property. There is plenty of room for family and guests with 5 bedrooms and 3.5 baths. The primary suite is conveniently located on the first floor with a large primary bathroom and soaking tub, and a second bedroom suite is located on the second floor away from three additional spacious bedrooms. Upstairs also features a versatile loft perfect for a home office, play area or reading area. There is ample parking and storage with a three-car garage and build-in cabinets. This type of home is a rare find, combining modern upgrades throughout the home with exceptional privacy and views! Dont miss the beautiful new roof with updated tiles in a beautiful and modern earth tone shade!

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7756 E San Miguel Avenue Scottsdale, AZ 85250

Open House

$970,000

3 Beds

2.5 Baths

2,465 SqFt

Status Active

MLS # 6766397

Property Type Townhouse

Price Type --

Prepare to be BLOWN AWAY by this stunning townhome, boasting nearly $300k in modern updates! Nestled in a quiet community with gorgeous views of Camelback, you'll be minutes away from the lifestyle you've been dreaming of. Golf, shopping, restaurants, the greenbelt, Old Town Scottsdale are all nearby. A new roof and 2 newer A/C units will provide peace of mind, while the entertainer's kitchen and backyard are perfect for hosting friends and family. Enjoy a convenient bonus room with a cozy fireplace, and another fireplace in the family room. Enter the covered patio through a sliding panoramic door for the best of indoor/outdoor living - this home truly has it all! A full list of upgrades can be found in the docs section. Comm pool & spa heated all year.

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4448 E Skousen Street Gilbert, AZ 85295

$969,900

5 Beds

4 Baths

3,125 SqFt

Status Active

MLS # 6759986

Property Type Single Family Residence

Price Type --

Luxury living in the highly sought after community of Cooley Station. This meticulously designed floor plan is unparalleled, where modern elegance meets comfort. This stunning single-story home boasts of 5 spacious bedrooms, office/den & 4 full bathrooms, all set on a premium lot with N/S exposure, no neighbors behind & the Cooley Station ''red brick'' exterior wall. As you enter through the private courtyard, you're welcomed by an open-concept layout w/ soaring 10-ft ceilings, recessed LED lighting, great room & a versatile dining area that can serve as an additional living space. The gourmet kitchen is a chef's dream, featuring an oversized island with breakfast bar seating, granite countertops, stainless steel appliances, double ovens, built-in microwave, reverse osmosis system..... walk in pantry & ceiling height white shaker cabinets with elegant under-cabinet lighting on both the upper/lower cabinets & the kitchen island. The primary suite is your personal retreat featuring an on-suite bath with dual sinks, soaking tub, walk in shower & a spacious walk-in closet. The home is complemented with the luxury of porcelain tile flooring, farmhouse shutters, full home security security system, water softener, Honeywell electronic air filters & indoor-outdoor living is at its finest featuring a 16-foot Atrium sliding glass doors that open up to the covered patio & backyard oasis, complete with a sparkling pebble tec pool, built-in gas firepit, & BBQ gas grillideal for both relaxing & entertaining. The 3-car tandem garage has built in garage cabinets & is prewired 50 AMP breaker that can be converted to accommodate an electric car charger. Cooley Station offers unrivaled community amenities, including two aquatic centers, scenic walking trails, multiple parks, basketball courts, bocce ball, & year-round resident events. Ideally located minutes from ASU Polytechnic Campus, San Tan Mall, Premier shopping, restaurants, grocery stores & Phoenix/Mesa Gateway Airport, this home is a rare find you don't want to miss!

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20593 W Oregon Avenue Buckeye, AZ 85396

$969,900

3 Beds

2.5 Baths

2,467 SqFt

Status Active

MLS # 6653331

Property Type Single Family Residence

Price Type --

Experience the pinnacle of luxury living in with this exquisite Appaloosa plan by Taylor Morrison. You'll be captivated by the elegant design and attention to detail. The spacious layout is perfect for both relaxation and entertaining. The gourmet kitchen is a chef's dream, equipped with high-end appliances, stylish countertops, and ample storage space. The dining room offers a front-row seat to the scenic golf course, creating a captivating backdrop for every meal. The back patio is an entertainer's paradise, featuring panoramic views of the White Tank Mountains, Phoenix city lights, and the Victory at Verrado golf course. Inside you can retreat to the owner's suite, where tranquility awaits. The beautifully tiled shower adds a touch of luxury to your daily routine.

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5477 W Quail Avenue Glendale, AZ 85308

$969,900

4 Beds

2.5 Baths

2,700 SqFt

Status Active

MLS # 6689139

Property Type Single Family Residence

Price Type --

WATERFRONT! REMODELED! 4 bedroom, 2.5 bath with lake and mountain views on cul-de-sac. DOWNSTAIRS Primary Bedroom! Formal living room at entry with built-ins, family room with fireplace just off NEW high-end kitchen with GE Cafe appliances, gas range, large island. NEW flooring, baths and AC units with 10-year warranty, Tesla charger in 3-car garage. Large covered patio to enjoy the sunset and lake view. Park your pontoon at your very own DOCK! MOTIVATED SELLER!

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2941 W Sunbeam Lane Queen Creek, AZ 85142

Open House

$969,500

5 Beds

4 Baths

3,122 SqFt

Status Active

MLS # 6728690

Property Type Single Family Residence

Price Type --

Just completed! Check out this beautiful New 5 bedroom 4 full bathroom custom home on AN 1.25 ACRE lot with NO HOA! Spacious great room plan with gourmet kitchen, White Cabinets, induction cooktop, subway tile, stainless steel appliances, full fridge and freezer, custom quartz counters, and walk-in pantry. Master suite has it all!! Private porch access, dual vanities, separate tub and shower. Huge walk-in closet. Front office /den with double doors. Front Bedroom / In Law Suite with private entrance and private bath. Large laundry room with sink and cabinets. Oversized 3 car garage. Back yard has Block Wall Fenced Yard with RV and Man Gates. Front yard desert landscaping on Paved Rd. With No HOA! $5,000 towards closing costs for close before Christmas!

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5645 N Crow Drive Eloy, AZ 85131

$969,000

2 Beds

2.5 Baths

2,413 SqFt

Status Active

MLS # 6757967

Property Type Single Family Residence

Price Type --

Luxurious Golf Course Estate, A Modern Masterpiece. Discover your dream home in this stunning contemporary residence nestled on a prime golf course lot. Meticulously crafted 2023 Vienta model this home offers unparalleled luxury and sophistication. Outdoor Oasis: Enjoy breathtaking golf course views from your private backyard, complete with gas fireplace, Bullfrog spa, professionally designed outdoor kitchen with granite countertops, built-in bar stools, and a 41'' griddle. Relax under the shaded extended patio with pergola, with travertine tile and motorized sun shades. Gourmet Kitchen This exquisite kitchen, boasting 41'' Shaker cabinets, a Sub-Zero refrigerator, quartz countertops, Signature Series gas range, wall oven and microwave, pot filler, reverse osmosis system, apron sink, built-in trash bins, and tile backsplash. Spacious and Functional Insulated air-conditioned 3-car garage features a 4' extension, with service door, epoxy-coated floors, sink, Titan cabinets. The rear of the home includes a 2' extension on master bedroom, closet, and outdoor space. Premium Details The finest craftsmanship throughout the home with features such as an iron entry front door, 12x24 tile flooring, 5 baseboards, 8 ft. doors, plantation shutters, UV-blocking windows, tankless water heater, multi-zone HVAC system, California closet system, media ready in every room and custom built-ins throughout. Additional Highlights Sellers have invested over $1.2 million in upgrades and customizations. Don't miss this opportunity to own a truly exceptional home.

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3686 Stampede Drive Wickenburg, AZ 85390

$969,000

3 Beds

3.5 Baths

2,768 SqFt

Status Active

MLS # 6672118

Property Type Single Family Residence

Price Type --

Welcome to the epitome of luxury living in Wickenburg Ranch! Located on a spacious end lot within a serene cul-de-sac, this breathtaking Latigo model home offers fantastic views, ample space, and coveted privacy. Step inside and be captivated by the seamless blend of elegance and modernity, highlighted by beautiful neutral tones that create a calming ambiance throughout. The expansive glass sliders effortlessly merge indoor and outdoor living, inviting you to savor the stunning vistas and enjoy the gentle Arizona breeze. Indulge your culinary senses in the updated modern kitchen, where sleek countertops, top-of-the-line appliances, and ample storage await the discerning chef. Adjacent, discover the convenience of a huge laundry room, cleverly designed to double as a functional office space, ensuring both efficiency and comfort. Retreat to the luxurious tiled bathrooms, where every detail exudes sophistication and style. Whether unwinding in the spa-like bathtub or refreshing in the spacious shower, every moment promises indulgent relaxation. For visiting family and friends, a charming casita awaits, offering a private oasis complete with all the comforts of home. Discover a lifestyle of unparalleled luxury and comfort in this stunning Latigo model home. Don't miss your chance to experience the epitome of Wickenburg Ranch living.

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1429 E Sweet Citrus Drive Queen Creek, AZ 85140

$969,000

2 Beds

3 Baths

2,143 SqFt

Status Active Under Contract

MLS # 6743091

Property Type Single Family Residence

Price Type --

This home offers approximately 2,143 square feet of living space across one level. It features two bedrooms and two and a half bathrooms. The property is situated on a golf course lot, providing scenic mountain views from the southwest-facing backyard. The gourmet kitchen is well-equipped, offering ample counter space and high-end appliances to cater to the culinary enthusiast. Adjacent to the kitchen, a bistro patio provides a tranquil outdoor space for al fresco dining or relaxation. The primary bedroom suite offers a spacious layout with an en-suite bathroom, providing a private retreat. The additional bedroom and bathrooms offer flexibility and accommodate guests comfortably. The home's orientation and placement on the lot maximize the enjoyment of the golf course and natural surroundings, allowing residents to immerse themselves in the beauty of the mountain vistas. This property presents an opportunity to experience the harmony of indoor and outdoor living. Since the owners are golf members, you will move to the front of the wait list if you are interested in joining the club as a golf member.

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34075 N Borgata Trail Queen Creek, AZ 85144

$968,966

4 Beds

3.5 Baths

3,097 SqFt

Status Active

MLS # 6773168

Property Type Single Family Residence

Price Type --

This STUNNING 2024 home is OVERFLOWING with over $200K in DESIGNER upgrades! This GORGEOUS home combines modern elegance + thoughtful living spaces! Step inside through the STUNNING iron entry door where you'll find a GRAND great room + separate den! GOURMET kitchen w/quartz countertops, Urban Coffee stained cabinets, tiled backsplash, waterfall island w/sink & breakfast bar + JennAir stainless appliance suite! VERY PRIVATE owner's suite w/ensuite bath, BIG walk-in closet + separate owner's RETREAT! Create your DREAM OASIS in the ample backyard backing to open space! This GORGEOUS property is located within the sought-after Prelude at Oro Ridge community with mountain views! This is the one. Welcome HOME! Three additional bedrooms are designed with privacy in mind. Bedroom 4 features its own private bath, making it ideal for guests or a home office, while bedrooms 2 and 3 share a well-appointed bathroom. Near the entrance, the versatile den can be used as a formal sitting room, a home office, or a media space. The home also includes a separate laundry room with direct access to the three-car garage, offering convenience and ample storage. Additional features include optional floor outlets in the great room, a powder room for guests, and plenty of linen closets throughout. The massive backyard provides endless possibilities for outdoor activities. Located in a community that offers biking and walking paths, this home is perfect for those who enjoy an active lifestyle or simply love to entertain. WELCOME HOME!

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14634 N 1st Avenue Phoenix, AZ 85023

$968,000

4 Beds

3.5 Baths

3,301 SqFt

Status Active

MLS # 6778653

Property Type Single Family Residence

Price Type --

Desirable Moon Valley home, 4 BR, (Sep Den/Office) 3.5 baths w/ no HOA. The moment you enter the custom front doors & are met w/ a dramatic entryway & 10 ft ceilings, you will know you are home. Set on a beautiful, private 1/3 acre lot boasting a pebbletec salt water pool, fire pit, lemon tree & a large grassy area, all of which can be accessed from a large covered patio. The kitchen features gorgeous leathered granite counters & plenty of space. Large barn doors insulate the great room with TV and kitchen from the bedroom side of the house. Primary bedroom & 1 other bedroom have private bathrooms. The primary bedroom is spacious as is the bath which offers a large stand-alone tub, sep shower, 2 sinks, & a spacious cedar-lined closet. Separate den/office. 2 car garage. Quiet neighborhood.

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1356 E Cherrywood Place Chandler, AZ 85249

$967,413

4 Beds

3 Baths

2,828 SqFt

Status Active

MLS # 6780125

Property Type Single Family Residence

Price Type --

Remarkable single-story home featuring 4 bedrooms, an office, a game room, 3 bathrooms, and an attached 3-car garage. Located in Treeland, a private and gated community in Chandler. The home is loaded with designer selections including a gourmet kitchen with Stainless steel built-in appliances including a 36'' gas cooktop and double ovens, quartz countertops with a waterfall edge island, and Bryant maple buckskin cabinets with stacked upper cabinets. Other highlights include a 12' multi-slider at the great room, a frameless walk in shower at the primary bathroom, an extended dining room, upgraded 6'' x 36'' tile plank flooring, pavers at the driveway and front porch, and so much more!

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