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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19301 N Ponderosa Court Surprise, AZ 85387

Open House

$934,975

4 Beds

3 Baths

2,865 SqFt

Status Active

MLS # 6750699

Property Type Single Family Residence

Price Type --

Stunning HAMPTON expanded to 2863 SF home with 4 bedrooms and 3 full baths! The entire interior was just painted! This home features a heated resort style pool and spa surrounded by a very large covered patio. The relaxing setting includes a firepit, built in grill with a counter and seating along with patio misting system and orange trees. Large kitchen with nook and island featuring upgraded cabinets with slideouts, water softener recently replaced, new oven, and shutters t/o. Large great room for entertaining plus a separate dining room. A true four bedroom home as the library/den was upgraded as a builder option. Full 3 car garage with four feet extension. Epoxy garage floors, and new furnace/ AC 2018. Also enjoy all the amenities that Sun City Grand offers! Many additional features including prime location, security doors, water softener, central vac, gas cooktop, reverse osmosis, expanded guest bedroom and much more.

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19360 N 73rd Street Scottsdale, AZ 85255

$934,000

2 Beds

2.5 Baths

1,637 SqFt

Status Active Under Contract

MLS # 6772942

Property Type Apartment

Price Type --

Belgravia Group presents Atavia, a private gated community featuring a collection of 88 luxury condominiums coming soon to North Scottsdale. Atavia blends the breathability of single-family living, featuring private entries and attached two-car garages, with the carefree convenience of condominium ownership. Designed by award-winning international architecture firm KTGY, Atavia redefines modern luxury living and includes a clubhouse inspired by Frank Lloyd Wright's iconic Taliesin West. Atavia is perfectly situated at the Loop 101 and Scottsdale Road and within the One Scottsdale masterplan development. Each exceptional home features a spacious outdoor terrace, Italian kitchen cabinetry, Sub-Zero and Wolf appliances, 1 ¼'' quartz counters, and wood floors throughout main living areas.

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19360 N 73rd Street Unit 1076 Scottsdale, AZ 85255

New

$934,000

2 Beds

2.5 Baths

1,637 SqFt

Status Active

MLS # 6784729

Property Type Apartment

Price Type --

Belgravia Group presents Atavia, a private gated community featuring a collection of 88 luxury condominiums coming soon to North Scottsdale. Atavia blends the breathability of single-family living, featuring private entries and attached two-car garages, with the carefree convenience of condominium ownership. Designed by award-winning international architecture firm KTGY, Atavia redefines modern luxury living and includes a clubhouse inspired by Frank Lloyd Wright's iconic Taliesin West. Atavia is perfectly situated at the Loop 101 and Scottsdale Road and within the One Scottsdale masterplan development. Each exceptional home features a spacious outdoor terrace, Italian kitchen cabinetry, Sub-Zero and Wolf appliances, 1 ¼'' quartz counters, and wood floors throughout main living areas.

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1261 E Cambridge Avenue Phoenix, AZ 85006

$932,999

4 Beds

3 Baths

2,618 SqFt

Status Active

MLS # 6743054

Property Type Single Family Residence

Price Type --

Stunning 4-bedroom residence located in Phoenix is a dream come true! Fall in love w/an exquisite interior adorned with sleek tile flooring, a fresh soothing palette, dazzling light fixtures, a unique-style wine cellar, & plenty of natural light. Enjoy spending chilly evenings at home by the cozy fireplace in the family room! The gorgeous kitchen showcases granite counters, built-in appliances, a pantry, a stylish tile backsplash, modern white cabinets, & a large center island equipped w/a breakfast bar. The main retreat offers private outdoor access, a lavish ensuite w/dual vessel sinks, a delightful soaking tub, & a walk-in closet. Host fun gatherings in the fabulous backyard, featuring an open patio w/manicured landscape, built-in BBQ, & a charming firepit! This gem won't disappoint!

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18211 W Sequoia Drive Goodyear, AZ 85338

$932,500

3 Beds

3 Baths

2,570 SqFt

Status Active

MLS # 6757941

Property Type Single Family Residence

Price Type --

Prepare to be impressed by this spectacular single-level TurnKey mostly Furnished home nestled on almost a 1/4 acre golf course lot at Estrella Mountain Ranch! This beauty showcases an exquisite façade with stone accents & desert vegetation. The elegant & sophisticated interior boasts a large, open floor plan complemented by tall ceilings, ceramic tile floors, stylish chandeliers, recessed lighting, and plantation shutters. The captivating living room comes with a built-in entertainment center equipped with a wall-mounted fireplace, the dining room allows unobstructed views of the backyard oasis, and the gourmet kitchen features staggered off-white cabinetry with crown molding, custom mosaic tile backsplash, black granite counters, SS appliances, and an oversized island with breakfast bar The primary suite has access to the back patio and hosts a lavish ensuite retreat comprised of a dual vanity, a sep-sin shower, and a bountiful walk-in closet. This spectacular layout includes a sizable den and an attached guest's quarter with a living room & a private bathroom. The stunning backyard is an entertainer's dream, offering a desert paradise with travertine flooring, an extended covered patio with a retractable lighted awning, a built-in grill, a meticulously maintained landscape with artificial turf, and a fabulous pool with a rain curtain. This gem is a rare find that won't last. Act now!

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19042 E Tonto Trail Rio Verde, AZ 85263

$932,000

2 Beds

2.5 Baths

2,892 SqFt

Status Active Under Contract

MLS # 6774283

Property Type Single Family Residence

Price Type --

Stunning Home with 180 degree view from Sunrise to Sunset with Mountain, Golf Course, and Desert Views. Welcome to your private dream retreat in Rio Verde's sought-after active adult community. Walking into this spacious open concept home, your eyes are drawn to the floor to ceiling windows, with million dollar view, large patio and heated salt water pool. A lovely southwestern charm home, saltillo flooring in kitchen, living, and dining, beautiful kitchen with custom Alder cabinets, two pantries with oversized island. Primary suite has two walk-in closets and a large walk-in shower. Guest suite has large walk-in closet and ensuite bathroom. Tonto Verde golf membership is available for purchase. Owner Agent

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3020 E Wethersfield Road Phoenix, AZ 85032

$931,999

4 Beds

3 Baths

2,549 SqFt

Status Active Under Contract

MLS # 6766358

Property Type Single Family Residence

Price Type --

This stunning mid-century modern home features over $150k in recent upgrades and sits on an oversized lot. Floor-to-ceiling and clerestory windows provide natural light and privacy. The open floor plan includes generous sized bedrooms and bonus spaces including a shop. The backyard is an entertainer's dream with new turf, concrete, massive diving pool, and a grand patio that are perfect for hosting. The completely remodeled 700 sq ft pool house with its own full bath and kitchenette can be used as a guest suite or additional income as it already has its own STR permit. Additional features include an expansive paved carport with an automatic gate, circular driveway, solar panels, ambient lighting throughout, and an EV charger. Don't miss the opportunity to own this unique resort-like home!

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21601 W Mariposa Street Buckeye, AZ 85396

$931,496

4 Beds

3.5 Baths

3,261 SqFt

Status Active

MLS # 6780228

Property Type Single Family Residence

Price Type --

NEW single level 4 bed, 3.5 bath plus study and tv room with 4 car garage; gourmet kitchen with waterfall island, upgraded shaker cabinets in white and buckskin; custom tiled backsplash, GE Monogram appliances, quartz countertops in kitchen and bath, upgraded plank tile flooring, owner's bath with super shower and huge walk-in closet with direct entry to utility room; entertainment size backyard with large covered patio; 2x6 constuction and EXTENSIVE NEW HOME WARRANTY

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22820 S 204th Place Queen Creek, AZ 85142

$931,202

5 Beds

3.5 Baths

4,517 SqFt

Status Active

MLS # 6749738

Property Type Single Family Residence

Price Type --

MLS#6749738 Ready Now!! The Acadia is a spacious 2-story floor plan offering 4,517 sq. ft. with 5 bedrooms, 3.5 bathrooms, a 3-car split garage, dining room, study, and game room. As the largest floor plan in the Ellsworth Ranch Voyage Collection, it's designed to be your perfect home. The foyer is the central hub, leading to the dining room, study, laundry, winding staircase, and the open-concept gathering room, kitchen, and casual dining area. The main-level primary suite features dual vanity sinks and his-and-hers walk-in closets. Upstairs, find secondary bedrooms and a versatile media room.

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6801 N 4th Place Phoenix, AZ 85012

$930,000

3 Beds

2 Baths

2,502 SqFt

Status Active

MLS # 6769159

Property Type Single Family Residence

Price Type --

Tucked away in the sought-after Villa Tercera Community, this beautifully remodeled home serves as a serene retreat while being conveniently close to local amenities. Highlights include a stunning high wood beam ceiling, charming arched windows, and a cozy beehive fireplace in the family room. The renovated eat-in kitchen boasts quartz countertops, shaker cabinets, an island with seating, and stainless steel appliances, complemented by stylish modern bathrooms. Additional updating includes newer windows and doors, skylights, a new A/C system with an added mini-split, fresh carpet in the bedrooms, and a resurfaced pool with a new pump, all set against an extended bricked patio area. This exquisite home combines an ideal location with exceptional features. And the backyard? It's perfect for for entertaining, whether you're soaking up the sun or enjoying a magical evening under the stars. The delicious Ruby Red Grapefruit tree out front will be a hit too. Could this be the one? Come and see for yourself. This is what the owners have to say about the home: This home offers a great balance of space and comfort. The light-filled great room with vaulted ceilings is ideal for gatherings, with easy access to the backyard patio for additional space when entertaining. We've hosted many events here, and the layout always feels open and welcoming. The living room is perfect for relaxing or catching up with friends, and the kitchen is well-designed for two people to cook together comfortably. The island also works as a casual spot for conversation while cooking. When the kids were still here, they had plenty of space in their bedrooms. With the east facing windows, they always feel light and bright. We've upgraded the master and living room closets, as well as the laundry room, to improve both functionality and appearance. The quiet and secure environment of the gated community adds a layer of peace and privacy. The location is convenient, with grocery stores, a gym, and restaurants close by. It's easy to support local businesses with everything you need just around the corner.

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6827 N 4th Place Phoenix, AZ 85012

$930,000

3 Beds

2 Baths

2,488 SqFt

Status Active Under Contract

MLS # 6779658

Property Type Single Family Residence

Price Type --

This exceptional Santa Fe style home in the gated Villa Tercera community offers a truly unique living experience. Step through the handcrafted gate into an enchanting botanical garden, complete with an infinity water feature by Ten Eyck Landscape Architects. Inside, you'll be greeted by a spacious great room with high ceilings and abundant natural light. The gourmet kitchen, designed by Sandra Evans of Knoell & Quidort, is a chef's dream, featuring top-of-the-line appliances and custom cabinetry. Both bathrooms have been tastefully updated with modern fixtures and finishes. This meticulously maintained home also boasts numerous upgrades, including a new roof, HVAC system, and water heater. Enjoy the prime location, just moments from Central Avenue's vibrant dining and entertainment

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146 S La Barge Road Apache Junction, AZ 85119

New

$930,000

3 Beds

2 Baths

2,061 SqFt

Status Active

MLS # 6784519

Property Type Single Family Residence

Price Type --

Become the proud owner of this beautiful 3-bedroom, 2-bath residence on a sprawling 1-acre lot! Fantastic curb appeal boasting a charming circular driveway, a 3-car garage, a convenient RV gate, tasteful desert landscape, an inviting porch, and breathtaking mountain views. The serene living room features high ceilings, an earth-tone palette, classic plantation shutters, wood-look flooring, and a cozy fireplace for intimate evenings. Cook delicious meals in the gourmet kitchen, equipped with granite counters, custom wood cabinetry with crown moulding, pendant/recessed lighting, sleek stainless steel appliances, and an island with a breakfast bar for casual meals. The sizeable main bedroom includes a lavish ensuite with double sinks, a jetted tub, and a convenient walk-in closet. Enjoy majestic sunsets in the vast backyard, complete with a covered patio, stylish pavers, a sunken gazebo with a bar, a sparkling pool, and panoramic views. Make this gem yours!

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