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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2823 N 58th Street Scottsdale, AZ 85257

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New

$950,000

3 Beds

2.5 Baths

2,121 SqFt

Status Active

MLS # 6783988

Property Type Single Family Residence

Price Type --

Unique opportunity to own an iconic Castleberry home, with its beautifully preserved mid-century architecture, timeless quality, and heritage. Situated on an expansive .7 acre lot, nestled in a peaceful corner of Fairway Park, with views of Papago Buttes and Camelback Mt., this property provides an ideal canvas for a luxury home or remodel, with privacy and very little through traffic—perfect for those seeking a tranquil setting amidst a community of upscale homes and recent renovations. The lot boasts natural desert landscaping and an existing pool, with ample space to expand and customize to your vision. Properties like this rarely come on the market in this area, where homes are tightly held and highly valued. Whether you want to invest or create a personal oasis, this property represents an exceptional opportunity in one of Scottsdale's premier areas, all without the restrictions of an HOA. Enjoy the convenience of proximity to top-rated schools, freeways, shopping, Old Town, the Phoenix Zoo, ASU, the Botanical Gardens, art galleries, and many culinary options, from upscale eateries to cozy cafes. Come see this unique find!

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9684 E Balancing Rock Road Scottsdale, AZ 85262

Open House

New

$950,000

3 Beds

2 Baths

2,439 SqFt

Status Active

MLS # 6779279

Property Type Single Family Residence

Price Type --

Wonderful opportunity to live in the highly desirable, picturesque & serene Troon North community. This single level 3 bed, 2 bath, 3 car garage home sits on a premium N/S lot with desert behind. It offers a spacious & split floor plan and an abundance of natural light. The great room features high vaulted ceilings, a formal dining area & gas fireplace. The eat-in kitchen boasts an oversized island w/ breakfast bar, granite counters and plenty of cabinet space. The large split primary suite offers private patio access and a stunning bathroom w dual sinks, separate soaking tub, private toilet room, and a walk-in closet. This beautiful home has 2 additional split bedrooms & 2nd full bathroom, laundry room w sink & storage plus a newer roof & 2 newer HVAC units (all less than 5 years old). The private, peaceful and low maintenance backyard includes an extended covered & uncovered patio and gorgeous desert views. Great space to relax and enjoy the outdoors. The popular Troon North community offers access to world-class golf courses and hiking trails plus its just minutes from Brown's Ranch Trailhead, Pinnacle Peak, easy freeway access & so much more. This is a special property that won't disappoint.

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2818 E Malapai Drive Phoenix, AZ 85028

Open House

$950,000

4 Beds

2 Baths

2,022 SqFt

Status Active

MLS # 6740315

Property Type Single Family Residence

Price Type --

This stunning contemporary designed and developed 4 bed 2 bath rebuilt home, from the floor up to and including the roof and everything in between is located in the sought after Heritage Heights area at the base of the Phoenix Mountain Preserve. Every detail has been meticulously crafted with all new plumbing, electrical, HVAC, flooring, fixtures, lighting, cabinetry, doors, windows, the list goes on. Nestled on a quiet low traffic enclave, with easy access to the preserve trailhead and the 51 freeway, this home offers the ideal blend of tranquility and convenience. The functional floor plan includes a master ensuite with private exterior access providing a seamless indoor-outdoor living experience similar to that which is provided from the homes great room.

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533 W Oregon Avenue Phoenix, AZ 85013

Open House

$950,000

3 Beds

2.5 Baths

2,057 SqFt

Status Active

MLS # 6729772

Property Type Single Family Residence

Price Type --

Situated on one of the most desirable streets in the coveted Medlock Place, your new home is only a quick walk/drive to top shopping at Uptown Plaza, including AJs, as well as many of Central Phoenix's favorite dining options. This charming home nestled within The 7s and the Madison School District features an updated, contemporary design with thoughtful fixtures, modern quartz, and tasteful paint selections and tile work. Enter to a beautifully designed foyer with skylights to accentuate the vaulted ceiling. All rooms within the home are generous in size and the extended great room and primary bedroom offer 12' ceiling height. The large lot offers a recently renovated backyard, now featuring an oversized patio, artificial grass, Chinese Elm trees, and a mini basketball court. The front yard offers beautiful vegetation with a welcoming path, while both front and back patios have misting systems. The single-car garage, if converted, can serve as an office, 4th bedroom suite, or workshop. All bedrooms offer large closets for ample storage, there are two AC units, as well as a whole home water filtration system.

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10628 E Tumbleweed Avenue Mesa, AZ 85212

Open House

$950,000

5 Beds

4 Baths

2,726 SqFt

Status Active

MLS # 6760845

Property Type Single Family Residence

Price Type --

Welcome to your Dream Home, nestled in the highly sought-after Estates at Eastmark community! This home is newer construction with impressive living space and the only home with a casita under $1 million in the Estates community! It's 1 story and has a 4 Car pass-through garage, too! The home features all of the luxurious upgrades including a gourmet kitchen with quartz countertops, ample storage space, a gas range, walk-in pantry, updated range hood and pot filler. Open and bright with an excellent, livable floor plan. Upgrades include an air purification system throughout entire home, energy efficient heating/cooling system in garage, automated blinds throughout, and added electrical outlets for convenient living. Also, Sweedish lighting & accent wall in Casita & new tile flooring in Primary Bedroom & Casita. Luxury living at its finest with sliding back patio doors that open to your backyard oasis. Lawn is low maintenance artificial turf and a blank canvass to build your Dream Backyard! It's one of the best locations in the community, backing to the Greenbelt and land on the east side for privacy and great views! Don't forget the incredible Eastmark community amenities like the pools, club, community center with gym, and much more! Sauna, hot tub, and furniture are negotiable. Welcome Home!

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17650 S Stallion Drive Munds Park, AZ 86017

$949,999

3 Beds

2 Baths

2,605 SqFt

Status Active

MLS # 6782540

Property Type Single Family Residence

Price Type --

Welcome to *Villa de Vis*, your dream cabin in Munds Park, AZ! (Please see the 3D Matterport walk through) This 3-bedroom, 2-bath mountain retreat combines luxury with rustic charm, featuring 5-star ratings on VRBO and Airbnb. Enjoy air conditioning (rare in Munds Park), front and rear decks, indoor and outdoor fireplaces, a spacious loft, a unique ''Glass Room,'' a garage, indoor laundry, and a large storage room. Sold fully furnished, *Villa de Vis* offers the option to continue as a successful vacation rental or transition to a private getaway. The seller will assist with transferring Airbnb/VRBO listings, marketing assets, and local vendors. Just minutes from Flagstaff, Sedona, and endless outdoor adventures! This is an owner/agent listing. You'll love the main bedroom boasting a sitting room great for an extra bedroom if needed and a solarium with exquisite views. There's a downstairs bedroom and bathroom for convenience. In the backyard, you can relax under the covered deck or next to the cozy firepit. Excellent location 1 mile from the well-known Pinewood Country Club and close to the national forest, lake, hiking/ biking trails, utv trails, park, restaurants, convenient store, tennis and pickleball courts, and more! Seize this opportunity!

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17642 E Hunt Highway Queen Creek, AZ 85142

$949,999

4 Beds

4 Baths

3,130 SqFt

Status Active

MLS # 6733145

Property Type Single Family Residence

Price Type --

THIS IS THE ONE!!! Do you want land & a custom home? An unbelievable property sitting on almost 1.5 acres w/ irrigation, horse privileges, & NO HOA! Inside you'll find a wood-burning fireplace, 4 beds (3 w/ en-suite bathrooms). Main bedroom has fully renovated bathroom & shower. Soaring vaulted ceilings throughout & beautiful luxury flooring. This exceptional custom home bordering Gilbert includes multiple patios & incredible mountain views! Extensively remodeled & cared for through the years. Living room has pull down screen, projector & surround sound. Exterior painted 2021. New hot water heater in 2021. Trane A/C new in 2018. Tons of amazing fruit growing on your property: grapes, pomegranates, velvet mesquites, citrus, & more!! Plenty of room for your DREAM pool! Don't Miss This!

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8634 E Cambridge Avenue Scottsdale, AZ 85257

Open House

$949,999

5 Beds

3 Baths

2,137 SqFt

Status Active

MLS # 6777123

Property Type Single Family Residence

Price Type --

Welcome to your newly remodeled home in South Scottsdale, located just minutes from Old Town! This open concept living area provides you ample space for comfortable living, with a stunning glass door flowing seamlessly into the backyard perfect for indoor-outdoor gatherings. This Italian style kitchen, thoughtfully created by Pellitteri Design, is equipped with extensive storage, state of the art appliances, a built in laundry area, and a stunning waterfall island with extra seating for friends and family. This home has TWO primary suites that you won't want to miss, plus three luxuriously designed bathrooms with custom vanities and tiles. Meticulously remodeled in 2024, this home has been thoughtfully constructed with all new windows, doors, LVP flooring, cabinets, drywall, a 9-foot glass door, new siding & stucco, low maintenance landscaping, and so much more.

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1155 E Gleneagle Drive Chandler, AZ 85249

$949,970

5 Beds

4.5 Baths

3,615 SqFt

Status Active

MLS # 6734121

Property Type Single Family Residence

Price Type --

New Home in Chandler! December Closing, Big Discounts! Highly Upgraded, Large Yard, Earnhardt Ranch is a new Master Planned Community in SW Chandler. Dramatic 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 working Ranch residential retreat. White Cabs, Woodlook Tile Floors n First Floor, Neutral Carpet Up, Upgrade Kitch, Counters, Floors, Must See Dramatic Entrance (**Photos are of a Model Home of plan built offsite). Easy access to the San Tan Freeway, I-10, and Hwy 87, located amidst top rated Chandler Unified Schools, shopping, and dining! Taxes Estimated.

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80 W Hance Trail Flagstaff, AZ 86005

$949,949

4 Beds

3.5 Baths

2,858 SqFt

Status Active

MLS # 6771937

Property Type Single Family Residence

Price Type --

This large and beautifully maintained 4-bedroom, 3.5-bath home offers both comfort and privacy in a prime location, just walking distance from Ponderosa Trails Park and a short drive to Snowbowl and Sedona. With two master suites, it's perfect for multi-generational living or providing extra space and comfort for guests. The home features spacious living areas with vaulted ceilings and beautiful windows that flood the space with natural light. The gourmet kitchen includes granite countertops, stainless steel appliances, ample cabinet space, a casual eat-in nook, and a formal dining room. The first-floor master suite is a retreat, featuring a luxurious soaking tub, a beautifully tiled walk-in shower, and a large closet. Upstairs, a second master bedroom with its own en suite... bathroom offers additional flexibility and comfort. Step outside to your own private backyard oasis, surrounded by mature trees, provides an abundance of shade and privacy, perfect for relaxing or entertaining on the expansive raised deck. Additional features include a new roof and a two-car extended garage for extra storage and convenience. This home is move-in ready and ideally located near great schools, with easy access to Flagstaff's top amenities, outdoor recreation, and Arizona's must-see destinations. Additionally, the large side driveway extension offers convenient RV parking.

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M16 L2 Los Langostinos -- Outside Arizona, AZ 00000

$949,900

3 Beds

2 Baths

1,800 SqFt

Status Active

MLS # 6697855

Property Type Single Family Residence

Price Type --

A beachfront gem that will make your heart happy for years to come. Located on desirable Playa Encanto Beach, this home has a beach like no other with the distinction of having no rocks and complete access for miles. Completely refurbished. This beachfront home has been upgraded with all new appliances, US grade electric, plumbing, gas lines, instant hot water, & 16,000-litre water tank. Custom artwork in the courtyard is very inviting and colorful. Great place to BBQ with family or friends. This home has 3 BR, 2 BR & views from every corner of the house. The south facing master bedroom faces the beach so you can wake up to spectacular sunrises or fall asleep to colorful sunsets every evening. The 4 car garage will satisfy, a perfect man cave awaits. This home is move in ready.

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404 E Coconino Place Chandler, AZ 85249

$949,900

5 Beds

3.5 Baths

3,856 SqFt

Status Active

MLS # 6778759

Property Type Single Family Residence

Price Type --

Welcome to this exceptional corner-lot home in the prestigious Pinelake Estates, complete with a fully finished basement! This beautifully crafted 5-bedroom, 3.5-bath property impresses with its charming stone facade, meticulously maintained landscaping, a tandem 3-car garage, and an RV gate for added convenience. Step inside to a welcoming foyer that opens to a thoughtfully designed interior featuring tile and carpet flooring, plantation shutters, and elegant archways. The main level includes a formal living room, a bright open den/office, and a spacious great room with sliding glass doors to the back patio—perfect for indoor-outdoor living. The open-concept kitchen boasts built-in appliances, granite countertops, recessed lighting, a two-tier island with a breakfast bar, and a convenient pantry. The primary suite offers direct access to the backyard, an ensuite with dual sinks, and a generous walk-in closet. Additionally, a Jack & Jill bedroom and bathroom setup add to the home's functional design. The expansive basement is a standout feature, offering a bonus room, a full bathroom, and a bedroomideal for guests, a game room, or a home theater. Outdoors, the backyard is a private oasis, complete with a covered patio, mature shade trees, and an extra-deep diving pool. This home offers everything you need for comfortable and luxurious living. Don't miss this rare gem in Pinelake Estates!

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