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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6095 W Mira Road Prescott, AZ 86305

$955,000

3 Beds

2.5 Baths

2,331 SqFt

Status Active

MLS # 6755513

Property Type Single Family Residence

Price Type --

Don't Wait for a New Build- Elevate Your Lifestyle NOW!! This home is truly impressive, showcasing top-notch builder upgrades throughout. The chef's kitchen is a standout, boasting an expansive island, Bosch appliances, a 5-burner gas cooktop, double ovens, and both a walk-in and butler's pantry. The spacious dining area features a double slider door that leads to a covered patio, perfect for taking in stunning views. With 3 bedrooms, 2.5 bathrooms, and an office/flex room, there's plenty of space for comfortable living. The master suite is a luxurious retreat, offering dual sinks, a walk-in tiled shower with upgraded rain glass, a walk-in closet, and patio access. The split bedroom floorplan includes two large guest rooms and an additional bathroom. The laundry room is well-appointed with cabinets, a utility sink, and quartz counters. Outside, you can unwind on the patio under a pergola with breathtaking views of Granite Mountain. The .52-acre lot backs to HOA open land, providing added privacy and space.

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32970 N 132nd Lane Peoria, AZ 85383

$954,990

3 Beds

2 Baths

2,302 SqFt

Status Active

MLS # 6767769

Property Type Single Family Residence

Price Type --

MODEL HOME FOR SALE; Gorgeous, fully furnished, model home.

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5289 N Via Sempreverde -- Tucson, AZ 85750

$954,000

3 Beds

2 Baths

2,367 SqFt

Status Active

MLS # 6780358

Property Type Townhouse

Price Type --

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11607 N 12th Terrace Phoenix, AZ 85020

$954,000

4 Beds

3.5 Baths

3,357 SqFt

Status Active

MLS # 6759042

Property Type Single Family Residence

Price Type --

Exquisite Residence on Prime View Lot! Cul-de-sac location adjacent to Phoenix Mountain Preserve and steps away from the community pool. Desert landscaping, stone accents, and spacious 2-car garage with carport. Formal living and dining rooms with gas fireplace and built-in shelving. Spacious family room with surround sound and multi-slider access to the backyard perfect for entertaining. Upgraded kitchen with granite counters, SS appliances, raised panel cabinets, gas cooktop, walk-in pantry, tile backsplash, and island with breakfast bar. Luxurious master retreat features sitting room, vaulted ceiling, clerestory windows, private balcony, and spa-inspired en-suite bathroom. New water heater installed late last year. Relattively new fridge and washer/dryer. A jetted master tub, 2 large walk-in closets, 2 vanities, & a floor-to-ceiling tiled shower. The 4th bedroom on the 1st floor has a full bath, backyard access, living area, walk-in closet, & kitchenette. Serene backyard offers natural gas BBQ, stone pavers, a covered patio, & view fence. Enjoy the heated Community pool/spa & walking trails. See it, love it, live it!

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21439 W Mariposa Street Buckeye, AZ 85396

$953,507

4 Beds

3.5 Baths

3,231 SqFt

Status Active

MLS # 6693746

Property Type Single Family Residence

Price Type --

This 4 bed, 3.5 bath with flex retreat, study & 3 car garage is nothing short of PERFECTION. Designer appointed features shine with 10' flat ceilings, large energy efficient windows, 8' doors & 12' sliding doors to the extended covered back patio. Upgraded cabinetry, countertops with tiled splash, accent lighting, GE Café stainless appliances & abundant storage highlight the chef's kitchen. With an open plan, the kitchen has magnificent views into both the family room & large, private backyard on this gorgeous homesite. Spa-like baths, upgraded plank tile flooring, and 2x6 construction are a few more of this homes' 'WOW' factors. Private, extensive new home warranty & BRAND NEW...you deserve the BEST. See you soon.

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6 E Martin Road Casa Grande, AZ 85194

$950,000

8 Beds

10 Baths

3,600 SqFt

Status Active

MLS # 6722680

Property Type Manufactured Home

Price Type --

TO-BE-BUILT luxury homes! These two luxury Santa Fe homes are being offered for sale atop a beautiful two acre property nestled at the base of Signal Peak Mountain! These homes would make a great buy for a family looking to stick together or an investor that would like to rent each unit out. The two homes total 8 bedrooms, 10 baths and 3600 square feet! A guest house is allowed. No HOA. Horses allowed. An ideal location with easy access to Interstate 10, Central Arizona College, Casa Grande Promenade, and less than an hour from the Phoenix airport. Save thousands of dollars with a custom factory-built duplex. The photos shown in this listing are NOT of subject property. These photos are to provide a general idea of what is to be built. Make an offer today!

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125 S Bonito Ranch Loop Cornville, AZ 86325

$950,000

3 Beds

2 Baths

1,800 SqFt

Status Active

MLS # 6751612

Property Type Single Family Residence

Price Type --

Indulge in serene luxury within this new Spanish Hacienda-style haven. Bathed in natural light, the open-concept great room and kitchen, equipped with all modern conveniences, extend a warm welcome. Be captivated by panoramic views through large windows on the west and sliding glass doors leading to a peaceful backyard porch on the east. Uncover a private primary suite oasis with a lavish bathroom boasting a double vanity, glass walk-in shower, and a rejuvenating soaking tub. The property is meticulously landscaped and enriched by an orchard featuring apricot, plum, pomegranate and peach trees. Privacy is a given, thanks to white vinyl fencing, a robust concrete wall along the back and corrugated metal fence. An oversized 3-car garage and a 51ft RV garage will full hookup and a versatile pop-out shop. The home beckons you to bring your toys and hobbies to life! Let nature nurture you with walks along the privately accessed section of Oak Creek under the shade of soaring Cottonwood and Sycamore trees. Pick wild blackberries and mulberries or fruit from our private orchards. Paddleboat on our pond or admire the wildlife and birding year round. Rio Bonito Ranch is a very unique and special place.

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2452 E Aloe Place Chandler, AZ 85286

$950,000

6 Beds

3.5 Baths

4,059 SqFt

Status Active

MLS # 6770001

Property Type Single Family Residence

Price Type --

Nestled on a private cul-de-sac in the heart of Chandler, this extraordinary property offers an unrivaled blend of luxury, comfort, and convenience. Ideally located near top-rated schools, major employers, premier shopping, and dining, it's perfectly positioned to enjoy everything Chandler has to offer. This remarkable home offers rare, sought-after features, starting with six expansive bedrooms and a chef's kitchen that looks like it's straight out of a magazine. The soaring ceilings and two spacious living areas are perfect for entertaining, while the downstairs master suite offers privacy and retreat and offers direct access to the backyard. A large bonus space is ideal for a home office or a dedicated homework area and the updated mudroom adds modern functionality to the home's layout For the ultimate cinematic experience, the upstairs home theater is outfitted with built-in surround sound, creating a luxurious atmosphere for movie nights. The indoor and outdoor living spaces are seamlessly integrated, providing ample room for both relaxation and gathering with friends and family. The backyard is an oasis, complete with a sparkling pool and spa, enhanced by a new heater and saltwater chlorine system for effortless maintenance. You'll find a large garage, RV gate and extended driveway too. The outdoor kitchen, lush green space, and covered patio make this the perfect setting for year-round outdoor living. This property offers modern amenities and an elevated lifestyle, making it a truly exceptional place to call home.

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21931 N 30th Street Phoenix, AZ 85050

$950,000

4 Beds

2 Baths

2,189 SqFt

Status Active

MLS # 6774972

Property Type Single Family Residence

Price Type --

Stunning, move-in ready single level home, built in 2019, located on a large, premium lot with no neighbors behind in the highly sought-after Sky Crossing master-planned community. This 4-bedroom, 2-bathroom home features an open, split layout with an office at the front, leading to a bright and airy great room that seamlessly blends indoor and outdoor living. The chef's kitchen is an entertainer's dream, with a spacious island and breakfast bar, gas range/oven, walk-in pantry, and a separate coffee bar with additional cabinetry. The private primary suite includes a luxurious bathroom with dual sinks, an oversized walk-in shower, a private toilet room, and a large walk-in closet. The home also features 3 additional bedrooms, a 2nd full bathroom and a spacious laundry room with extra cabinet space. Step outside to enjoy a low-maintenance backyard featuring a sparkling pool with a Baja shelf, a combination of covered and uncovered patio space, and breathtaking, unobstructed views of the desert. Additional highlights include a tankless water heater, water softener, and high-end finishes throughout. Sky Crossing is more than a home - it's a lifestyle. This community offers resort-style amenities including a pool, state-of-the-art fitness center, and a beautiful clubhouse. It is lined with parks, playgrounds, and walking paths, plus walking distance to Sky Crossing Elementary (in the community), Explorer Middle School & Pinnacle High School, all highly ranked PVUSD schools. SC is also conveniently located near Desert Ridge Marketplace & High Street for shopping & dining, the JW Marriott Resort & Wildfire Golf Club, Reach 11 Sports Complex and the 101/51 junction making it easy to get to almost anywhere in the valley. You'll fall in love with everything this home and neighborhood has to offer.

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11673 N 136th Street Unit 1005 Scottsdale, AZ 85259

$950,000

2 Beds

2.5 Baths

2,179 SqFt

Status Active

MLS # 6712315

Property Type Apartment

Price Type --

Stunning luxury condo in the desirable Reserve Scottsdale community. This open floorplan with over 9' ceilings is great for entertaining family & friends! The private courtyard leads you into the home as you enter a beautiful designed herringbone stone entry & you will love the beautiful easy care luxury plank vinyl flooring. Spacious kitchen looks into the great room w/ Bosch Stainless appliances, 5 burner gas cooktop, beautiful white cabinetry, custom designed oversized quartz island w/ fun pendant lighting for a splash of color. Inviting master bedroom has a beautiful bathroom w/ a large walk in shower, separate soaking tub to relax after a hike or a game of golf and dual vanities. Large secondary bedroom with a beautiful en suite. You will love the open large den! Laundry room has storage and fun tile to make the laundry process an enjoyable time! You will love the 3 private patios off the main living areas to relax and unwind enjoying our AZ lifestyle! In the cooler months cozy up to the fireplace on one of the patios off of the great room with your favorite beverage! The home comes equipped with a whole house water filtration system. You will love this ground unit with no interior steps! This community is surrounded by the McDowell Mountains and walking distance to a great coffee shop! You will love the North Scottsdale lifestyle with great shopping, dining, entertainment, hiking, golfing, spas, tennis, pickleball in the surrounding area. The gated community offers a community pool with BBQ and is great for a full time resident or second homeowner wanting a lock and go lifestyle!

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4229 N Recker Road Mesa, AZ 85215

$950,000

4 Beds

2.5 Baths

3,131 SqFt

Status Active

MLS # 6726176

Property Type Single Family Residence

Price Type --

Welcome to your dream home, perfectly situated on the 16th green of the most pristine golf course in the area! This luxurious residence offers uninterrupted views from tee to hole, creating a stunning backdrop for everyday life. Step into your backyard oasis, featuring a heated spa and pool. Relax while soaking in the panoramic mountain and golf course views. Enjoy your mornings and evenings on patios adorned with elegant flagstone, perfect for outdoor entertaining or quiet contemplation. Nature enthusiasts will love the proximity to hiking and biking trails, just two-tenths of a mile away. Families will appreciate the convenience of a new K-12 public charter school being constructed nearby. The yard is designed for low maintenance and is home to mature fruit trees, adding a touch of natural beauty and bounty. Inside, the home boasts beautiful security doors that allow you to embrace the delightful weather and soothing sounds of nature during the ideal seasons. The updated plantation shutters provide a stylish and functional touch, ensuring privacy and light control. Built with sturdy 2x6 construction, this home includes an attic with R-50 insulation for energy efficiency and comfort. A central vacuum system adds extra convenience to your daily routine. Nestled on the corner of a cul-de-sac, this home offers both privacy and community. Take advantage of this rare opportunity to own a paradise with an unmatched golf course and mountain views.

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10081 E Turquoise Avenue Scottsdale, AZ 85258

$950,000

2 Beds

2 Baths

1,800 SqFt

Status Active

MLS # 6731592

Property Type Single Family Residence

Price Type --

Generously expanded one level home with grand master bedroom and extended den all on an oversized lot. This home exudes pride of ownership from the moment you enter the beautiful entrance way. You will delight in the generous square footage of the home and the soaring ceilings. Home sparkles with original finishes and fresh paint throughout. Private backyard with private pool, which is an extremely rare find in this neighborhood. This is the perfect winter haven as it provides home owners with sparkling pools, tennis courts, close proximity to walk paths, parks, and excellent shopping. All of this tucked away in a guard gate paradise.

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