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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19999 W Fawny Lane Casa Grande, AZ 85122

$949,000

3 Beds

2.5 Baths

2,807 SqFt

Status Active

MLS # 6759365

Property Type Single Family Residence

Price Type --

Equestrian's dream! If you own horses this 5 acre equestrian property is equipped for you, see full list of facilities below. Custom built home, in an exclusive neighborhood with saguaro studded mountains and city light views. Sit on the expansive south facing patio and enjoy the sunsets while your horses graze nearby. Built with tech block, the walls have R50+ rating. 12 foot ceilings, wood fire place, great room, wet bar, wood laminate floors, three large bedrooms and an expansive office create the perfect indoor living space. Vinyl, dual pane windows, tile roof, four car extended garage with cabinets, central vac, separate entry to all bedrooms. Five acres fully fenced with no climb wire fence. Electric gate. Freshly painted exterior and interior. Equestrian Facilities include: Hay barn, 3 16'x48' turnout pens, 16'x16' covered; 12' breezeway; 3 16'x16'indoor stalls; 3 16'x16' open pens; 10'x10' tack room w hot water; wash rack; hitching post; electrical, water and lights throughout; 30'x40' 3-sided covered storage, 3 16'x16' covered storage, 220 power. Turnouts located in three acre fenced area with new divided shade cover.

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3130 E Cedar Drive Chandler, AZ 85249

$949,000

4 Beds

3.5 Baths

3,606 SqFt

Status Active

MLS # 6757419

Property Type Single Family Residence

Price Type --

This incredible property is nestled in a gated community and ready to make buyers' dreams come true. The 3,606 square foot home is built on a generous 12,380 square foot lot featuring a live lawn, mature trees and a welcoming courtyard. With 4 bedrooms, 3.5 baths and multiple living rooms, this house is perfect for a family looking for extra space and/or entertainers hoping to make hosting a hobby. Other noteworthy features include custom bar, largo patio, built in BBQ, sparkling pool and a 4-car garage. Located just miles from popular shopping and restaurants, buyers will learn it's a quick drive (or walk) to neighborhood favorites. The home falls within the coveted Chandler Unified School District boundary and is also a mile from Veterans Oasis Park.

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16538 E Desert Vista Trail Scottsdale, AZ 85262

$949,000

4 Beds

3 Baths

3,478 SqFt

Status Active

MLS # 6763612

Property Type Single Family Residence

Price Type --

Move right in and enjoy this beautifully updated 4-bedroom, 3-bathroom home with nearly 3,500 SF of living space on over an acre! Surrounded by stunning views of the Mazatzal, Four Peaks, and McDowell Mountains, this home offers the best of desert living. Recent updates include a newer roof, 2 HVAC units, water heater, and kitchen appliances. The spacious kitchen features two large islands with new stone countertops, and all three bathrooms have been refreshed with refinished cabinets and new stone surfaces. Freshly painted inside and out, with updated light fixtures and ceiling fans throughout. The backyard is perfect for relaxation, featuring newer artificial turf and a putting green. Washer and dryer included! This home is truly move-in ready. Don't miss this opportunity! Seller is open to offering Seller to Buyer concessions. Seller is also offering a 1 year Home Warranty through HoneGuard HWAZ23162.

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2109 E Balboa Drive Tempe, AZ 85282

$949,000

4 Beds

3 Baths

3,768 SqFt

Status Active

MLS # 6767132

Property Type Single Family Residence

Price Type --

The House is 4 Bedrooms with a den for entertaining adults and a playroom for entertaining kids. The house needs some TLC. One family lived there for 55 years. It's ready for a new family to make memories for years to come. The golf course is slated for development, but this house will retain its fantastic sunset views and open greenbelt feel.

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1460 E Linda Vista Drive Flagstaff, AZ 86004

$949,000

6 Beds

3 Baths

2,848 SqFt

Status Active

MLS # 6772710

Property Type Single Family Residence

Price Type --

Discover this stunning 6-bedroom, 3-bathroom residence in the highly sought-after Shadow Mountain area, all without any HOA or CC&Rs. This Northern Arizona dream home features a freshly painted exterior and an upgraded kitchen equipped with double ovens and stainless steel appliances, including a new Energy Star built-in dishwasher. The spacious primary suite offers its own fireplace and a luxurious ensuite bathroom, complete with double sinks, radiant heated tile flooring, a large shower, and elegant granite countertops. This remarkable property includes several bonus spaces, such as a media room, an office/craft room, and an outdoor home brewing area. The interior showcases beautiful hardwood floors, ceramic tile, and new carpeting throughout. Enjoy air conditioning to stay cool during the summer months after a day of exploring nearby trails. During cozy winter evenings, unwind by the two fireplaces while sipping hot cocoa and watching snowflakes gently fall through your picturesque windows. Step outside to your tranquil, fenced backyard, perfect for children to play, dogs to roam, and chickens to thrive in their custom-built coop. Imagine grabbing a soda from your novelty Coke Machine and sipping it beneath the towering ponderosa pines while taking in breathtaking mountain views. With ample storage options, including an outdoor shed, workshop, an oversized garage, and a spacious driveway featuring an RV parking spot, this unique home truly has it all. Located just moments away from hiking trails, parks, shopping, and everything Flagstaff has to offer, this is an opportunity you won't want to miss!

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28999 N 127th Lane Peoria, AZ 85383

$949,000

2 Beds

2.5 Baths

2,610 SqFt

Status Active

MLS # 6775684

Property Type Single Family Residence

Price Type --

Awesome 2br 2.5ba + Den and FORMAL DINING '' Aurora '' with STUNNING POOL & OWNED SOLAR Nestled on a Premium 13,124 SF Cul-De-Sac Lot in Award Winning Trilogy at Vistancia. Tremendous Curb Appeal with Paver Driveway, Hardscape & Mature Landscape. Meticulously Maintained Featuring 12ft Ceilings, Window Treatments , Central Vac & Newer Tile Flooring T/O. Updates include Two Year New 15.50 Seer Trane & Painted Inside and Out ! Gourmet Kitchen Includes Gas Cooktop, Dual Sinks, Expansive Granite Slab Island, Designer Backsplash, SS Appliances and Staggered Cabinets. Great Room with Gas Fireplace & Tray Ceiling Owners Suite w Bonus Room . Bedroom 2 En Suite w Private Bath. Den w French Doors & Murphy Bed. INCREDIBLE Backyard w Pool, Extended Paver Patio, Elevated Fire Pit , LARGE PERGOLAS with Electronic Louvered Cover. Den with Doors and Murphy Bed. Extended 2 Car Garage + Single Side Garage. This Home was built as one of Shea's ''Superiology'' Homes with Post Tension Slab, Solar, Attic Fan and Blown In Insulation. Renovations and Improvements Include : 1. New Master Trane AC Unit Including Air Handler in 2022. Complete System with 10 year Warranty. 2. All New Kohler comfort height high efficiency toilets ( 3 ) 3. All Ceiling Fans replaced 4. New LG Refrigerator 5. New Maytag Washer and Dryer 6. New Kohler Pedestal Sink and Fixture in Powder Bath 7. Custom Murphy bed in Den 8. New Kitchen Fixtures including Auto Faucet / Sprayer 9. Replaced Water R/O in 2023 10. New Pool Filter in 2024 11. New Blackout Window and Blinds in Primary BR 2022

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41 Arrow Drive Sedona, AZ 86336

$949,000

5 Beds

4 Baths

2,616 SqFt

Status Active

MLS # 6770952

Property Type Single Family Residence

Price Type --

Come see this amazing house! This house has commercial zoning! Use as work/live space!. This 5 bedroom, 4 bathroom property was formerly run as a bed and breakfast then a doctor's office in Sedona! and comes with proper zoning for up to 6 rentals and has been reviewed by the city New buyer could make a few upgrades to the existing structure or complete rehab it with renderings already available that have been reviewed by the city! We are very close to the shuttle drop off for a major trail head and just across the 89A from Broken Arrow Trailhead. Buyer to Verify all facts.

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1384 N Muleshoe Road Apache Junction, AZ 85119

$949,000

3 Beds

2.5 Baths

2,373 SqFt

Status Active

MLS # 6774116

Property Type Single Family Residence

Price Type --

Welcome to your Custom Arizona Estate! Stepping through the private gated courtyard with fountain you will enjoy one of the most spectacular views of the Superstition and Usery Mountains in the Valley. The property radiates character, with just the right Santa Fe warmth and flare. 1.25 acres of professionally landscaped desert perfection. 2373 sf of living space that includes 3 bedrooms, 2.5 bathrooms. Large bonus room off of formal dining with separate entrance, casita and workshop. The well-appointed kitchen offers stainless steel appliances, kitchen island breakfast bar and breakfast nook with a view of your pool. Travertine flooring throughout living spaces and rustic luxury laminate in bedrooms. Escape to the Primary Suite with a large soaking tub atop a custom eucalyptus live edge slab, walk in shower, double sinks on elevated vanity and unique walk-in closet. Primary bedroom has direct access to your luxurious outdoor resort which includes fireplace, pool/spa and a wildlife observation deck. A great spot for a sunset celebration. Enjoy the refreshing heated saltwater pebble-tech pool and spillover spa, all surrounded by herringbone travertine tiles. Your casita studio (400sf) is currently a complete gym, and there is also a workshop (480sf) with garage door entry. This property also offers a designer chicken coop to utilize as you wish. Don't miss this all-inclusive Superstition Mountain home just 20 min from Mesa. Close to golf resorts, hiking, kayaking and more. It's the whole package!

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8691 E Eastwood Circle Carefree, AZ 85377

Open House

$949,000

2 Beds

2.5 Baths

2,087 SqFt

Status Active

MLS # 6767305

Property Type Single Family Residence

Price Type --

STUNNING & IMMACULATE HOME IN GATED COMMUNITY OF EASTWOOD, A WONDERFUL BOUTIQUE COMMUNITY IN CAREFREE!THIS GORGEOUS CONTEMPORARY STYLE HOME IS LIKE BRAND NEW!TOP TO BOTTOM QUALITY FINISHES. ALL ONE LEVEL~ 2 BD/2.5 BATH GREATROOM PLAN;GOURMET KITCHEN; SS KITCHENAIDE APPLIANCES;GAS COOKTOP;QUARTZ COUNTERTOPS;KITCHEN ISLAND.FAMILY ROOM WITH CUSTOM STACKED STONE WALL.EXIT FR OUT LG GLASS SLIDERS TO COVERED PATIO AREA W/VIEW FENCING;WATER FEATURE;ARTIFICIAL GRASS;NICE LANDSCAPING. LUXURIOUS PRIMARY (SPLIT);DUAL VANITIES;SOAKING TUB;LG WALKIN SHOWER;LARGE CUSTOM CLOSET.GUEST BEDROOM W/ ENSUITE BATHROOM W/SHOWER; ANOTHER OFFICE/FLEX ROOM! ENERGY STAR BUILT HOME;LOW E WINDOWS;ON DEMAND HOT WATER;LOW FLOW FIXTURES;SOFT WATER SYSTEM;LAUNDRY W/CABINETS;ALL CITY SERVICES & SEE DOC TABS FOR MORE!

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1029 E Garfield Street Phoenix, AZ 85006

Open House

$949,000

5 Beds

5.5 Baths

3,000 SqFt

Status Active

MLS # 6781742

Property Type Single Family Residence

Price Type --

INVESTMENT OPPORTUNITY! This restored modern duplex in Phoenix's Garfield Historic District offers a prime investment opportunity, just blocks from the vibrant Roosevelt Row and Arts District. Featuring two distinct units, the front unit includes 3 bedrooms, a loft with 3 additional rooms, and 3 bathrooms across 1,800 sq ft, while the back unit provides 2 bedrooms, 2.5 bathrooms, and 1,200 sq ft. Both units have private entrances, designated parking, and outdoor spaces. Highlights include quartz countertops, upgraded appliances, LVP flooring, dual-paned windows, new HVAC, new plumbing, and updated electrical, etc. Zoned R-5, this property is perfect for short- or long-term rentals, in a growing, arts-focused community. BACK HOUSE IS CURRENTLY LEASED FOR $2,000/MONTH - See private remarks.

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3915 E Aquarius Place Chandler, AZ 85249

Open House

$949,000

5 Beds

3 Baths

3,885 SqFt

Status Active

MLS # 6776013

Property Type Single Family Residence

Price Type --

Gorgeous and move-in ready! This elegant 2-story home has already been professionally inspected making it ready for you to make it your own. Offering 3,885 sq ft of living space, it features 5 bedrooms, 3 bathrooms, and a spacious loft upstairs. For added convenience, 1 bedroom and a full bathroom are located on the first floor. The home showcases neutral paint and tile flooring throughout, creating a versatile and inviting atmosphere. The large kitchen is equipped with stainless steel appliances, recessed lighting, abundant cabinetry, ample counter space, and a walk-in pantry. Perfect for entertaining, there's a formal living and dining area as well. Upstairs, the oversized primary suite includes a versatile bonus space and a large bathroom with a separate bath and shower featuring dual shower heads, along with a generous walk-in closet. An additional bathroom upstairs also offers dual sinks for added convenience. The resort-style backyard is perfect for outdoor living and entertaining, with an extended patio, pavers, a built-in BBQ, and a pool complete with a water feature and slide. The home also includes 3-car garage spaces and boasts beautiful curb appeal.

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19550 N Grayhawk Drive Unit 1084 Scottsdale, AZ 85255

Open House

$949,000

2 Beds

2 Baths

1,834 SqFt

Status Active

MLS # 6707430

Property Type Townhouse

Price Type --

Experience the epitome of Scottsdale living in this coveted North Scottsdale locale. Nestled at the end of a well-lit cul-de-sac, this 2 bed, 2 bath, 1,834 sq. foot single-level residence boasts an abundance of natural light, accentuated by its desirable end-unit positioning. Step through the circular rotunda entryway and be greeted by sculpted ceiling details that exude elegance. Relish in the warmth of the gas fireplace as you unwind in the spacious living area. The eat-in kitchen, adorned with freshly painted cabinets and updated appliances with oven and induction cooktop, invites culinary creativity. Adjacent, a covered private patio offers a serene retreat for dining or morning coffee. The master suite features a generous walk-in closet, while the den provides flexibility, easily convertible into a third bedroom. Recently updated flooring, a renovated guest bath, and a backyard makeover enhance the allure of this home, ensuring both comfort and style. Indulge in the amenities of the community, including walking, hiking, and biking trails, playgrounds, pocket parks, and tennis courts. Relax by the sparkling swimming pool and spa, or enjoy peace of mind with 24-hour security patrol. Additionally, a gated courtyard adds an extra layer of privacy and charm to this exceptional property.

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