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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26137 N 52nd Avenue Phoenix, AZ 85083

$949,900
6 Beds
4.5 Baths
3,840 SqFt
Status Active
MLS # 6763902
Property Type Single Family Residence
Price Type --
Charming 6 bedroom & 4.5 bathroom home in prestigious Stetson Valley Community. This is a 3,840 SqFt two story home with top of the line upgrades and meticulously designed interior. Open layout with a gourmet kitchen, formal dining area and a large living. The kitchen, boasts top-of-the-line upgrades including a large center island with seating & breakfast bar, granite countertops, walk-in pantry, high-end stainless steel appliances, including a gas cooktop, wall oven, and a second oven to cater to gourmet cooking experiences. Expansive master suite down stairs, with a luxurious walk-in shower with custom tiling, bathtub, a double vanity for convenience & style and huge walk-in closet. Ensuite second master bedroom with walk-in closet gives this home a feel of luxury and comfort. Oversized backyard with multiple fruit trees and outdoor gazebo, entertainment and grilling area. This home has one of the largest lots in the community with RV gate and RV parking and space for entertainment. This community is also known for Deem Hills recreation area with fields for sports, pickleball courts and hiking trails.

7156 S Forest Avenue Gilbert, AZ 85298

$949,900
5 Beds
4 Baths
4,182 SqFt
Status Active
MLS # 6767913
Property Type Single Family Residence
Price Type --
Come discover the beauty of this spectacular residence nestled inside the highly coveted community of Seville Golf & Country Club in Gilbert. This spacious estate offers the perfect combination of elegance, comfort & versatility with well over 4,000 square feet of thoughtfully designed living space. With 5 large bedrooms, 4 full baths, and multiple living areas, this home is sure to cater to every need. Step inside to find formal and casual living areas, including a grand dining room, a dedicated office, a cozy loft, and so much more. The heart of the home features a gourmet kitchen with upgraded appliances, including a gas range as well as double ovens, granite countertops, and an open flow into the family room, complete with a charming gas fireplace. With a first-floor full bath, a bedroom with private sitting area, and large laundry area with sink and storage areas, you are provided with flexible living options, while two additional living spaces offer endless possibilities for relaxation and entertainment. Step outside to your private oasis and discover your own personal retreat with a sparkling, recently refinished Pebble Tec pool, upgraded pool pump, and a covered patio that overlooks a built-in BBQ area, outdoor fireplace, garden area ready to grow all your herbs for delicious meals, and a cement pad perfect for basketball. An RV gate adds convenience, while whole-house solar sunscreens and new HVAC units (2021) ensure comfort year-round. The oversized primary suite is a true sanctuary, boasting two walk-in closets, a separate soaking tub, and a walk-in shower. With abundant storage throughout and a spacious 3-car garage, this home has it all. Enjoy the best of Arizona living in your new home that seamlessly combines luxury, comfort, and outdoor enjoyment, making it a must-see in one of Gilbert's most sought-after communities.

17940 S Green Mountain Place Munds Park, AZ 86017

$949,900
4 Beds
3 Baths
2,581 SqFt
Status Active
MLS # 6770633
Property Type Single Family Residence
Price Type --
Beautiful 4 bedroom, 3 bath, plus bonus room home that overlooks the Coconino National Forest. Home is being sold fully furnished! Private, heavily treed lot on a cul-de-sac street! Relax or entertain on one of the three, new trex decks. 2 bedrooms and bonus room on lower level, wood fireplace, 2 new mini-splits, newer roof, wood blinds, custom cabinetry, updated bathrooms, vaulted ceilings, newer paint, ceiling fans, kitchen has pantry and breakfast bar, quarter inch steel at joints and posts, 3 M translucent film on large windows that blocks over 95 percent of UV rays, wrapped pipes with insulation, new block retainer wall. This clean, well-maintained home is located in a highly desirable area of Munds Park. You will be walking distance to the well-known Pinewood Country Club and STEPS to the national forest, very close to the lake, hiking/ biking trails, tennis and pickleball courts, park, restaurants, convenient store, and more! No HOA Munds Park is only 17 miles South of Flagstaff and a 2-hour drive from Phoenix to escape the heat! Come see your new, dream, get-away in our neck of the woods!

18725 E Karsten Drive Queen Creek, AZ 85142

$949,900
4 Beds
3 Baths
1,782 SqFt
Status Active
MLS # 6776969
Property Type Single Family Residence
Price Type --
Enjoy country living on nearly an acre right on the border of Gilbert and Queen Creek! This single-level ranch-style home includes a guest casita with a private entrance and overlooks a spacious backyard with a large dual-purpose garage/workshop that opens to nearly half an acre of open land. Recent upgrades feature fresh paint, an expanded kitchen with new cabinetry, quartz countertops, stainless steel dishwasher, microwave, refrigerator, and a custom island. Additional updates include new doors, trim, and flooring throughout, a new HVAC system for the casita, and casita that is fully remodeled interior with a separate entrance for added privacy. So much more awaits!

25909 N 50th Lane Phoenix, AZ 85083

$949,900 - 4Br/3Ba -  for Sale in Stetson Valley Parcels 7 8 9 10, Phoenix
New
$949,900
4 Beds
3 Baths
3,002 SqFt
Status Active
MLS # 6782244
Property Type Single Family Residence
Price Type --
MUST SEE! RECENTLY RENOVATED! Beautifully updated, 4 bed/3 bath home w/ den. Floor plan is open and airy with formal dining and living room and large great room. Renovation completed in 2023 with complete remodel of kitchen and master bathroom, all new carpet, LVP flooring, and paint throughout. Kitchen boasts a MASSIVE island, modern appliances, gorgeous quartz countertops, large 6-burner gas stove, plenty of cabinetry for storage , Backyard boasts covered patio, beautiful grass area and sparkling pool. Exterior paint was completed in 2022, pool was built end of 2020. Solar system installed in spring of 2024. System is not owned but is a solar power purchase agreement with a low fixed monthly payment lowering your total energy bill dramtically

8867 W Golddust Drive Queen Creek, AZ 85144

$949,900
5 Beds
3 Baths
3,681 SqFt
Status Active Under Contract
MLS # 6765123
Property Type Single Family Residence
Price Type --
Stunning 5-bed, 3-bath w/ loft 3,681 sq ft home, featuring breathtaking MOUNTAIN VIEWS, a sparkling POOL w/ 3 fountains & above ground spa. This estate is set on a large 0.78 acre lot w/ RV PARKING ALLOWED. Enjoy easy access to scenic horse trails that wind through the community & behind the house. The outdoor oasis includes a built-in BBQ, charcoal grill, fire pit w/ expansive covered patio & gazebo—perfect for entertaining. The property features a spacious 6-car garage, ideal for creating a workshop, storing vehicles, or housing all your recreational toys & equipment! Inside, the open floor plan boasts a downstairs master suite w/ wood shutters, a spacious bathroom & large walk-in closet. The formal living and dining rooms, along with a cozy family room... provides ample space for gatherings. Repurpose the large formal living space as an at home office or play area. The kitchen offers an island, breakfast bar, granite countertops, deep single basin sink, custom tile backsplash, convenient roll-out shelves, 2 large pantries & a built-in desk w/ even more cabinets. The guest bedroom on the main floor, w/ a walk-in closet & full bath, makes this home ideal for multi-generational living. Upstairs, discover three oversized bedrooms, each offering generous closet space, along w/ a large loft that opens to a balcony for more scenic views. There is another full bathroom upstairs. The 3-car garage is fully equipped with epoxy flooring, tandem garage door access & a soft water loop. This property has everything for horse enthusiasts, with space for a potential arena, stalls, and a backyard shed that can serve as a tack room. The second 3 car garage at the back of the lot has ample room for large vehicles or equipment w/ side motor garage door openers. This garage space is complete with two mini-splits for comfort, making it perfect for a workshop. With extensive storage throughout, including walk-in closets, a laundry room plumbed for a sink, sunscreens on the windows, and a soft water loop, this home has great upgrades! Fresh paint on both the inside and outside w/ a pool and yard that is routinely maintained. Make this equestrian estate your reality!

33425 N 139th Place Scottsdale, AZ 85262

$949,900
3 Beds
2.5 Baths
3,140 SqFt
Status Active
MLS # 6729771
Property Type Single Family Residence
Price Type --
Enjoy stunning mountain views from this 1+acre impeccably maintained custom ranch home.The expansive great room boasts sought-after vaulted ceilings, a cozy fireplace, and oversized windows flooding the space with natural light and showcasing breathtaking vistas. Separate dens offer versatile office spaces ideal for remote work or schooling. Kitchen features knotty alder cabinetry, a pantry, and granite countertops & backsplash. The master suite includes a spa-like jacuzzi bathtub and direct access to the patio and pool area. Outside, enjoy a pool with a waterfall surrounded by a tumbled travertine deck and a generously sized covered patio, perfect for outdoor entertaining. A MUST see! This move-in ready home comes fully equipped with, Updated Light Fixtures, New Blinds, Trane A/C units, a Solar Recirc Hot Water System, R-49 attic insulation, and a three-car garage complete with built-in storage racks. Discover the perfect blend of luxury and functionality in this exceptional property!

617 N 107th Street Mesa, AZ 85207

$949,900
5 Beds
3 Baths
3,651 SqFt
Status Active
MLS # 6736665
Property Type Single Family Residence
Price Type --
Sitting on a large 1.26-acre lot with stunning low-maintenance desert landscaping, this exquisite 5-bedroom, 3-bathroom home offers 3,651 sq. ft. of luxurious living space with no HOA restrictions! As you arrive, you'll be greeted by an inviting circular driveway, surrounded by the beauty of the desert surroundings, making an impressive first impression. Step inside to discover a light-filled interior with soaring ceilings that enhance the spacious feel of the home. The grand foyer leads you into the heart of the house, where you'll find a generously sized living area perfect for both relaxation and entertaining. The main floor features a spacious master suite, offering a private retreat with ample space, ensuring comfort and serenity. A separate office provides a quiet space for work or study, ideal for remote work or managing your personal affairs. The large kitchen and dining area are the heart of the home, equipped with sleek stainless steel appliances that cater to all your culinary needs. The open-concept design ensures seamless flow between the kitchen and dining areas, making it perfect for family gatherings and entertaining guests. Recent updates include newer interior paint and stylish wood laminate flooring throughout, adding a modern touch to the home. The expansive game room/flex space offers endless possibilities, whether you envision it as a playroom, home theater, or personal gym. With three full bathrooms, this home provides ample convenience for a large family or visiting guests. Outside, the property continues to impress. The large 2-car garage, RV gate, and extended driveway offer ample space for all your vehicles and recreational toys. The backyard is a true highlight, featuring a pad cut into the hillside behind the home, ready for you to build a shop or guest house, adding even more value and potential to this remarkable property. Don't miss out on this exceptional home that truly has it all! Come and experience the beauty and tranquility of desert living at its finest, where every detail has been thoughtfully designed to provide the perfect blend of luxury, comfort, and functionality.

26886 N 90th Avenue Peoria, AZ 85383

$949,900
5 Beds
5 Baths
4,543 SqFt
Status Active
MLS # 6756882
Property Type Single Family Residence
Price Type --
Beautiful, well maintained 5 bedroom/5 Bath home with a 3 car garage. The backyard is landscaped with gorgeous pavers and a heated pool and spa that backs up to a private desert scene. The kitchen has a gas stove top, granite counters, an abundance of cabinetry, a butler's pantry and walk in pantry. The large primary is on the main level with a large master bathroom with walk in closet and a slider that leads you to the backyard. You will also find a living room with soaring ceilings and a fireplace off of the kitchen, a great room up front, dining and an office/extra space. Upstairs has four bedrooms and a loft area with a built in desk. The loft also has a handy laundry shoot that drops straight to the laundry room. This house has everything you need and more!

5547 S Tatum Court Gilbert, AZ 85298

$949,900
4 Beds
3.5 Baths
4,036 SqFt
Status Active Under Contract
MLS # 6689704
Property Type Single Family Residence
Price Type --
PREVIOUS BUYER CONTINGENCY OF 45+ Days fell through...Passed Inspection/Appraisal Waived, NOW BACK ON MARKET WITH COMPLETELY REVIVED INTERIOR & SIGNIFICANT PRICE IMPROVEMENT FROM ORIGINAL LIST! LIVE DESERT LUXURY IN GILBERT'S WATER TREE LINED DESTINATION MASTER PLAN...THE BRIDGES. THIS DISTINCTIVELY CRAFTED WOODSIDE HOME portrays EVERYDAY FUNCTIONALITY & DESIGNER LIVING in all ways. BUILDER'S FORMER ''Legacy Primo'' LUXURY RESIDENCE showcasing exclusive Upgrades Features Finishes Everywhere, TOTAL ENTERTAINERS DREAM! Desirable 4,000 SF+ Open Great Room Floor Plan modeling a Professional Chefs Gourmet Kitchen w/Custom Quartzite Waterfall Island, Glass Sliding Wall influencing Indoor/Outdoor Activities, Multiple Bonus Spaces, Newly Finished Grand Fairytale Staircase, Secluded Owner's Retreat featuring a must-have Spa-Like Bath, Nordstrom's Style Walk-in Closet & Separate Flex Space for all your best uses...Workout/Yoga, Nursery, Morning Coffee Conversation Lounge, Jack & Jill Bath/Bedrooms, CUSTOM Built-in Cabinetry/Shelving throughout, Prized 2014 Craftsmanship & Distinguished Architecture by one of AZ's most Reputable/Awarded Home Builders, Today's Newer Energy Efficiencies throughout, Welcoming Front Covered Porch w/decorative hardscape... perfect for all the Community Holiday Festivities, 3.5-Car Tandem Garage w/extended paver driveway for, quiet cul-de-sac home site, Centralized South Gilbert Proximity, Excelling A-rated Schools & FINALLY... SOAK UP YOUR FINISHED BACKYARD/POOL OASIS w/all the MUST-HAVE OUTDOOR Amenities! LIVE, LOVE & PLAY in one of Gilbert's Most Desirable Destination Master Plans... THE BRIDGES. Offering scenic San Tan Mtn Views, Grand Waterfall Monuments, Streams, Lakes, Tree Line Streets & Multiple Parks including kids splash pads. Take advantage of Centralized Gilbert Corridor Living, where world-class amenities meet you at your doorstep! Festive Dining, Shopping & Endless Attractions include San Tan Village, Downtown Gilbert, Gilbert's New Regional Park, QC Wash Trail & Prized School Options. Newer Bridges Elementary a walk around the corner within the master plan & Gilbert's Regional Park just across the street!

1014 E Glenn Drive Phoenix, AZ 85020

$949,900
4 Beds
4 Baths
2,287 SqFt
Status Active Under Contract
MLS # 6716478
Property Type Single Family Residence
Price Type --
Welcome home to your 4 bedroom / 4 full bath, permitted remodel that's undergone a total transformation in every way imaginable with curb appeal galore. Featuring multiple en-suite baths, dual HVAC system, a designer kitchen with pantry, custom cabinetry & luxury appliances, an open floorpan with lots of natural light, an attached fully finished garage, an indoor laundry room & a magnificent rear yard that offers tons of privacy complete with a large pebble bottom pool, low maintenance landscaping with artificial turf & a large covered patio. Quiet neighborhood, freeway close with lots of amenities near by.

1349 Rockwood Drive Prescott, AZ 86305

$949,900
3 Beds
3 Baths
2,276 SqFt
Status Active Under Contract
MLS # 6747336
Property Type Single Family Residence
Price Type --
Here's your chance to own a stunning home in the highly sought-after Preserve at Prescott neighborhood. Built recently by Premier Development, this better-than-new residence has been very lightly lived in and offers the perfect blend of modern luxury and natural beauty. With 3 bedrooms, a dedicated office space, an oversized 3-car garage, and set on .42 acres, this home is a rare find, especially when you consider its unique setting. Nestled among impressive granite boulder outcroppings, the property provides an unparalleled level of privacy while still being located just minutes from all that Prescott has to offer. As you step inside, you'll be captivated by the breathtaking views of the city lights, and distant glimpses of the iconic Bradshaw Mountains framed by the surrounding boulders The great room, designed with an open concept, seamlessly connects the living space with the outdoors, The heart of the home is the chef's kitchen, featuring a massive granite island, a commercial-grade Wolf gas range, and top-of-the-line Bosch appliances. Whether you're cooking a gourmet meal or enjoying a casual breakfast, this kitchen is sure to impress. The master bedroom is a true retreat, with serene views of the granite boulders and offering direct access to the private backyard. The ensuite bathroom is the epitome of luxury, with a floor-to-ceiling custom tile walk-in shower, dual vanities topped with granite counters, and a spacious walk-in closet. The home's split floor plan places the guest rooms on the opposite side, ensuring privacy for all. These rooms share a beautifully appointed full bathroom with a jetted shower/tub combo, perfect for unwinding after a long day. There's also a convenient powder room to accommodate your guests, and a well-appointed laundry room complete with a folding shelf, utility sink, hanging bar, and plenty of storage cabinets. The oversized 26+ foot depth 3-car garage is a standout feature, offering ample space for all your vehicles and storage needs. Whether you're a car enthusiast with a collection of classic cars, an off-road adventurer, or simply someone who values extra storage space, this garage has you covered. Each bay is generously sized, allowing for easy access and maneuverability, with plenty of room left over for tools, equipment, or even a small workshop. Homes like this, with such attention to detail and prime location, don't come around often. Skip the hassle and wait of building newthis Preserve at Prescott gem is ready to become your dream home. Don't miss out on this exceptional opportunity!

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