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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7472 E Paraiso Drive Scottsdale, AZ 85255

$900,000

3 Beds

2.5 Baths

2,401 SqFt

Status Active

MLS # 6779271

Property Type Townhouse

Price Type --

Discover modern desert living in this beautiful 3 bed, 2.5bath, two-story townhouse located in the heart of North Scottsdale. The open-concept kitchen, complete with a large quartz island and custom tiled backsplash, seamlessly flows into the great room where a 20-foot multi-slide door opens to the private backyard creating the ideal space for indoor/outdoor living and entertainment. Also enjoy the convenience of direct access from the attached garage, a full laundry room, and powder bath for guests all on the first floor. Upstairs, an open flex space offers the perfect opportunity to have an in-home gym, office, or additional entertainment space. The primary suite serves as a relaxing retreat with a generous walk-in closet, an ensuite featuring a separate shower and tub, and a double vanity. Two additional bedrooms share a guest bathroom with a shower-tub combination and double vanity. Residents enjoy a sense of community and luxury lifestyle as they enjoy the shared community pool, spa, gym, and walking paths throughout. Surrounded by local shops, restaurants, and scenic attractions, this exceptional Scottsdale townhouse perfectly combines modern amenities with the charm of desert living don't miss your chance to make it yours!

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956 Castillo Drive Litchfield Park, AZ 85340

$900,000

4 Beds

2.5 Baths

2,394 SqFt

Status Active

MLS # 6775540

Property Type Single Family Residence

Price Type --

Life Style living in this exclusive Golf Course Community - Wigwam resort amenities and more. Solar system to save you $ money. **Newly Remodeled** New AC Unit-New Pool Heater, 4 bedroom, 2.5 bathroom house! This home boasts spacious rooms, designer large ceramic tile- staggered laid. Beautiful kitchen with granite countertops and a wet bar! Large walk in pantry with barn doors and soaring Vaulted ceilings & Sky lights. You will love the two way gas fireplace at family room. Indoor laundry room complete with storage cabinets! Large master retreat with separate exit to backyard and two large walk in closets. New fixtures, doors, commercial grade irrigation system and windows. This home has it all, large patio, artificial turf for low care yard, and heated pool and in ground spa. Great walking/biking trails around this Old Litchfield Park Community with access to Wigwam Resort amenities, Golf packages and more. Dining, shopping and A Rated schools are in the community. Golf cart community allows you to get anywhere on golf cart. NO HOA. You won't be disappointed.

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4188 E Dwayne Street Gilbert, AZ 85295

$900,000

5 Beds

4 Baths

2,945 SqFt

Status Active

MLS # 6776419

Property Type Single Family Residence

Price Type --

Cozy bungalow style 5 bed, 4 bath home is nestled between community green space, park & pool. Legacy Traditional, located just behind the home offers an easy commute for K-8 students. Spacious lot boasts low maintenance landscape, custom travertine patios, natural gas fireplace & gas hook-up for BBQ. RV gate, gated parking, extended height 4-car garage & 3-car paved driveway offer maximum storage for all your cars & toys. High ceilings, electric fireplace, custom woodworking and wood staircase offer additional luxury. Wood plank tile flooring extends through all living spaces with exception of flirty mosaic tile at guest bath & wood staircase. Home offers Hyperion water refinement system (6K), a new master closet (7K), nest thermostats, ring doorbell & custom easily removable wallpaper. Upstairs you will find a sizeable loft w/vaulted ceilings, where you can spend a relaxing Sunday afternoon. Double doors open up to a cozy den, ideal for an office or reading nook. Lastly, the wonderful backyard includes a covered patio and extended seating area w/an outdoor fireplace! What are you waiting for? Act now!

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17780 N 66th Lane Glendale, AZ 85308

$900,000

4 Beds

3 Baths

2,494 SqFt

Status Active Under Contract

MLS # 6615012

Property Type Single Family Residence

Price Type --

BACK ON THE MARKET! Welcome to this stunning and meticulously maintained 4BD, 3BA home. This property exudes charm and elegance, offering a perfect blend of modern features and timeless appeal and no HOA. The living area boasts high ceilings, creating an airy and inviting atmosphere. One of the focal points of the home is the gorgeous kitchen, which has been thoughtfully designed with both style and functionality in mind featuring beautiful granite countertops and ample cabinet space. The center island provides additional workspace and a breakfast bar, perfect for casual dining or entertaining guests. Another highlight of this home is the temperature controlled, detached garage, offering additional storage space or the opportunity to create a workshop or studio. The home offers 4 generously sized bedrooms, providing plenty of space for a growing family or accommodating guests. The master suite is a true retreat, complete with a fireplace and a luxurious ensuite bathroom featuring a large shower, dual sinks and the walk-in closet provides ample storage space for all your belongings. Step outside to the beautifully landscaped backyard, where you'll find a covered patio, a ramada perfect for outdoor dining or simply enjoying the Arizona weather and an inviting pool for the warmer days of the summer! The low-maintenance front and back yards ensure you can spend more time relaxing and less time on upkeep. Located in a sought-after Glendale neighborhood, this home is conveniently situated near shopping centers, restaurants, parks, and schools. With easy access to major highways, commuting to downtown Phoenix or other parts of the valley is a breeze. Don't miss out on the opportunity to own this gorgeous home. Schedule a showing today and experience the beauty and comfort this property has to offer!

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272 E Orange Blossom Path San Tan Valley, AZ 85140

New

$900,000

3 Beds

3.5 Baths

2,731 SqFt

Status Active Under Contract

MLS # 6784009

Property Type Single Family Residence

Price Type --

Gorgeous Alora floor plan, 3 BR, 3.5 BA and 3 Car garage! Beautiful and elegant, with a kichen that is a chef's delight! Granite counters, upgraded appliances, and an island that makes this all work for cooking and sophistication! Must see!

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3659 E Morrison Ranch Parkway Gilbert, AZ 85296

$900,000

5 Beds

3.5 Baths

3,758 SqFt

Status Active Under Contract

MLS # 6766110

Property Type Single Family Residence

Price Type --

Stunning 5-Bedroom Home with Pool in Morrison Ranch! Welcome to your dream home in the highly sought-after Morrison Ranch community! This 5-bedroom, 3.5-bathroom gem offers the perfect blend of comfort, style, and luxury. Featuring a master suite conveniently located on the main floor, this home is ideal for both privacy and ease of living. As you step inside, you'll be greeted by spacious living areas, including a bright and airy loft, ample storage, coffered ceilings, shutters, oversized bedrooms and so much more in this 3758 square foot home. The gorgeous backyard boasts a sparkling pool and a custom built-in BBQ, ideal for outdoor cooking and entertaining. Surrounded by lush landscaping, the backyard provides ample space for lounging, grilling, and enjoying Arizona's sunny days in style. This serene outdoor retreat offers the perfect setting for both relaxation and hosting memorable gatherings. Located in Morrison Ranch, a community known for its tree-lined streets and picturesque sidewalks making it easy to stroll through the neighborhood. You'll enjoy the perfect balance of small-town charm and modern amenities. This home is close to excellent schools, shopping, and recreational activities, all while being nestled in one of the most coveted neighborhoods in the area. Hot water heater replaced 2022, 1 AC replaced 2023, Exterior Paint 2017, Partial Flooring 2023

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10282 E Sahuaro Drive Scottsdale, AZ 85260

$900,000

3 Beds

2.5 Baths

2,807 SqFt

Status Active Under Contract

MLS # 6769970

Property Type Single Family Residence

Price Type --

Welcome to this elegant property & experience luxury living. This rare find sits on a PRIVATE 10,423 sq ft, lot with 2,807 sq ft of beautifully designed living space. The home blends functional elements with the natural beauty of the resort style yard, an abundance of fruit trees & majestic views of the McDowell Mountains. The primary en-suite is your private sanctuary located on the main floor. It features a large sitting area, dual sinks & 2 closets. The 2nd level offers 2 large bedrooms, a loft plus a balcony that provides views & serenity. The walnut floors, updated kitchen, vaulted ceilings, skylight, new water heater, laundry chute, open kitchen & great room are waiting for you. Located in a top-rated school district & minutes from Basis Scottsdale. Must see to appreciate.

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19257 E Spyglass Boulevard Queen Creek, AZ 85142

$900,000

5 Beds

3.5 Baths

3,392 SqFt

Status Active Under Contract

MLS # 6778267

Property Type Single Family Residence

Price Type --

Check out this PRISTINE CONDITION, 5 bedroom + Office, 3.5 baths w/ a CASITA on a 1/3 Acre Lot w/ POOL & 3.5 CAR GARAGE on the Gilbert/ Queen Creek Border. The 1st floor features a front sitting/formal dining room, oversized family room, a GOURMET Kitchen, & an attached casita w/ a FULL Bedroom, Bathroom, Kitchenette & Separate Living Room. This 3,392 sq. ft home has been recently remodeled to include White Plantation Shutters throughout, updated lighting & Crown Molding. Kitchen features upgraded cabinetry w/ Crown Molding, a Double Oven, Samsung SS Flex-Zone refrigerator, Bosch SS Dishwasher, Quartz Countertops & a Butler's Pantry. Upstairs you will find an oversized primary suite w/ walk-in closet, an office (could be 6th bedroom), 3 additional bedrooms & the laundry room. The backyard is the entertainer's dream w/ an outdoor kitchen, pergola w/ sitting area, extended patio, self cleaning 9 ft deep pool w/ baja deck. Backyard also has a 10 ft RV Double gate, extended concrete parking & a great grass area. This property is situated in a great neighborhood that has a walking path to Mansel Carter Oasis Park, 10 minutes to the Loop 202, and less than 15 minutes to San Tan Mall. Queen Creek has great shopping (Costco, Target, Potato Barn, etc), dining, entertainment & medical facilities. Check this one out!

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30711 N 162nd Street Scottsdale, AZ 85262

$900,000

4 Beds

3 Baths

2,990 SqFt

Status Active

MLS # 6659399

Property Type Single Family Residence

Price Type --

Horse Property ! Over TWO acres ( 2.5 ) of desert views! 360 degree view from rooftop deck including views of Weaver's Needle! Huge garage and workshop area and all kinds of storage ! Freshly painted and refurbished. and new carpet as of September 2024 !

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9177 E Sunflower Court Scottsdale, AZ 85266

New

$900,000

2 Beds

2.5 Baths

1,892 SqFt

Status Active

MLS # 6784573

Property Type Townhouse

Price Type --

Beautiful and functional Villa. Fully furnished. Two ensuite bedrooms, master suite with two closets, powder room, den/office. Large laundry room. High ceilings. Gas fireplace. Beautiful exterior spaces; Covered patio, views, and more views from the roof deck. It's one of the few villas with its own private pool. This home is furnished down to the towels, linens, and kitchenware. Ready to continue on in the Resort Rental Pool, or your own Short Term Rental, or your own comfortable resort. This villa is set on a large lot set back from the street. It is a corner unit with wonderful privacy. A peaceful, low maintenance retreat.

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4055 N Recker Road Unit 95 Mesa, AZ 85215

$900,000

4 Beds

2.5 Baths

3,206 SqFt

Status Active

MLS # 6701891

Property Type Single Family Residence

Price Type --

$8000 PRICE DROP! Looking for elegance and luxury? Then look no further! MOTIVATED sellers looking to downsize. This absolutely stunning, gated RED MOUNTAIN RANCH CUSTOM home is ready for YOU. Columns and arches adorn the high ceiling entryway into the living room, inviting you to indulge yourself in conversation, or gaze out at the oasis like pool through the expansive windows. The oversized master suite offers a sitting area, the homes second fireplace, and French doors leading to the pool and covered patio. The master bathroom pampers you with a heavenly garden tub, separate walk in shower, dual sinks and a large walk in closet with built in island shelving. At the other end of the home you will find the kitchen with matching stainless appliances including a brand new Bosch Dishwasher Adjacent to the kitchen is the cozy family room which warms and brings you together with a firplace, three comfortably sized bedrooms and a full guest bath. The fourth bedroom may be used as an office or den as it has two entrances, one of which being French doors that open into the living room. Outside you'll find the backyard oasis with glimmering pool and rock waterfall feature, easy care, manicured Mediterranean inspired landscaping, full covered patio and multiple area for seating. Throughout the home you will find custom woodwork and aesthetics that will truly bring you pride of ownership in this stunning home that sits just across the street to golf course access path. No sign on property.

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7631.. Baldwin Lane Taylor, AZ 85939

$900,000

4 Beds

3.5 Baths

3,038 SqFt

Status Active

MLS # 6706945

Property Type Single Family Residence

Price Type --

Beautiful secluded 4 acre property, private well, gorgeous grounds at the end of the street. Unobstructed sunsets to the west (20 acre parcel w/ creek to the west). Further privacy provided by acreage to the south, the rock mountain (horse turn out /fenced) (This offering to be split at time of purchase from the 8 acre parcel) (additional 4 acre property available to purchase) Custom great room floorplan with flagstone wood burning fireplace - all large rooms, 4 bedrooms, office, oversize bonus room. Master bedroom & bonus room have separate patio exits. Dining & office w/ french doors, 3.5 baths, great room, separate dining room, gourmet kitchen, granite counter/tops w/ pegasus black sink, custom cabinets, mud room w/ full shower & sink, large laundry, pantry. Lovely covered outside flagstone bar area with small frig & sink. Separate ''salon room'' with plumbing & separate entrance. Oversized garage, tons of storage, tool room. Circle front and rear drive, RV / trailer parking. 12x14 greenhouse, 20x30 fenced garden, 2 apple, 2 cherry, peach plumb & pear trees, dog runs w/ shelter in pump house, 10x12 storage shed. New roof in 2021. Horse pens & turn out (up the mountain). (additional 4 acres to the east avail to purchase for $250K)

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