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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2791 W Sunbeam Lane Queen Creek, AZ 85142

$899,900

4 Beds

4 Baths

2,890 SqFt

Status Active Under Contract

MLS # 6728710

Property Type Single Family Residence

Price Type --

New Construction just completed 4 BED 4 BATH 4 CAR GARAGE with in Law Suite on an 1.25 ACRE LOT with NO HOA! Spacious great room plan with gourmet kitchen, White Cabinets, wall oven/microwave combo, Induction cooktop, Stainless Vent hood, custom quartz counters. Master suite has it all!! Private porch access, dual vanities, separate tub and shower. Large South Facing patio for shade all day. Huge walk-in closet. Four bedrooms / 4 full baths with amazing views of the mountains. Over sized bedrooms with can lights and ceiling fans in every room. Large laundry room with counters and cabinets and access to primary closet. Oversized 4 car garage. Front Yard Landscaping Included with Block Fence Back Yard on Paved Rd. NO HOA!

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13407 W Thomas Street Casa Grande, AZ 85122

$899,900

3 Beds

2 Baths

1,760 SqFt

Status Active

MLS # 6733402

Property Type Manufactured Home

Price Type --

The Ultimate Horse Property! Situated on over 6 acres with irrigation rights in the heart of Casa Grande, this place was made to impress. Let's kick it off with over a million lumens lighting the 180'X300' Roping Arena, automatic Priefert roping chute under the 30'x50' covered boxes. 100'X80' Custom 8 stall horse barn with breezeways, automatic waters, fans, leading out to the 4 stall automatic horse jogger. 20'x16' tack room that's wired and has a split unit. 50'X60' Shade that covered on 3 sides, concrete parking, RV Hook Up, and 3 wired containers. 45'x52' Hay barn with concrete, 110 power, and a full RV hook up. 36'x48' small animal shades, 12 total pens,show ring, wash area. House features custom cabinets, granite countertops, stainless steel appliances, and full covered porches.

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18564 W Cathedral Rock Drive Goodyear, AZ 85338

$899,900

5 Beds

4.5 Baths

3,316 SqFt

Status Active

MLS # 6767713

Property Type Single Family Residence

Price Type --

The Orion is a 3,316 square feet floor plan with 4 Bedrooms + Study + Casita, 4.5 Baths, and a 3 Car Garage. Offering a generous Master Suite, the Orion includes a large Walk-In Shower. The secondary bedrooms are designed to be on the opposing side of the home giving everyone their own space. This home also offers a gorgeous porch, courtyard, and an extended covered patio to enjoy these areas when guests are coming over. This home is ready to move in by November 2024.

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1914 W Wayne Lane Anthem, AZ 85086

New

$899,900

3 Beds

2.5 Baths

2,768 SqFt

Status Active

MLS # 6784220

Property Type Single Family Residence

Price Type --

Step into style with this 2,768 SF Laguna model in the desired and gated Anthem Country Club. This home is open concept with 12 ft ceilings, fireplace, plantation shutters, ceiling speakers, water softener, RO system, 3 bedrooms and office. Two brand new HVAC units installed in Nov 24. The heart of the home is the gourmet kitchen with slab granite counters, custom cherry cabinets, updated back splash, 6 burner gas stove, wine fridge and an island with prep sink. Gorgeous engineered hardwood and 18 inch tile runs throughout, creating a cohesive flow. Ensuite bath includes a jet tub, separate walk-in shower and dual vanities. The walk in closet has built in cabinets. The large private north facing back yard with mountain and desert wash views features a self cleaning and leveling pool. Built in BBQ, lush landscaping and a spacious covered patio. The 3 car garage with built in cabinets offering additional storage solutions. Located in Anthem, one of the area's most desired communities, this home offers access to parks, walking trails and recreational facilities. Nearby, you'll find top-rated schools, shopping, dining and easy access to major highways.

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4497 E Jesse Street Gilbert, AZ 85295

New

$899,900

4 Beds

4 Baths

2,936 SqFt

Status Active

MLS # 6783251

Property Type Single Family Residence

Price Type --

Discover refined living in Cooley Station! This exceptional home includes a Premium corner lot, which backs to a beautiful park. Upgrades thoughtfully integrated throughout to elevate the overall charm. The inviting exterior boasts stone pillars and neatly manicured landscaping that add character to this beautiful home. Enter through a warm-toned hallway adorned with rustic barn doors, guiding you into the main living area. Here, a chef's dream kitchen awaits, complete with a large granite island, stylish gray cabinetry, and a captivating tile backsplash. The open-concept space flows seamlessly into the living room, where a custom-tiled fireplace serves as the focal point, complemented by plush seating and designer light fixtures. The primary suite exudes tranquility, highlighted by an enchanting forest mural that transforms the room into a private sanctuary. Large windows enhance the natural feel, and a private door provides easy access to the backyard. The en-suite bathroom is equally impressive, offering a freestanding tub, a spacious glass-enclosed shower, and dual sinks, making it a spa-like escape. Additional bedrooms feature unique touches, such as a brightly painted accent wall and contemporary ceiling fans, providing comfort and style for family or guests. Outdoors, the covered patio is the ideal spot to unwind, featuring a large lot to create your dream backyard with only one shared wall provides ample space for entertaining, while neighborhood parks and open spaces are just steps away, enhancing the serene atmosphere. This home is an ideal blend of thoughtful design and luxurious comfort.

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1040 E Osborn Road Unit 302 Phoenix, AZ 85014

$899,900

3 Beds

2.5 Baths

2,717 SqFt

Status Active

MLS # 6697098

Property Type Apartment

Price Type --

Discover the difference at Crystal Point with its Magnificent unobstructed 270-degree views from every room of the Downtown skyline, Camelback Mtn, Piestewa Peak & Phoenix Country Club Golf Course. This 3rd floor condo is 2,718 sq ft with elegant 91/2 ft high ceilings was remodeled in 2023. It boasts oversized ensuite bedrooms & separate den/office that can easily be a 3rd bedroom. Spacious balcony w/gas outlet for BBQ has sliding glass doors that lead to the great room, and Kitchen. Building amenities include a lap pool/spa, exercise room, concierge, 24 hr guard, 2 underground parking spaces & storage room. Separate 'Hotel Quality' guest suites available. Unparalleled in Arizona, this little-known secret in the heart of Phoenix with timeless architecture is a must see!

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2058 N 68th Place Scottsdale, AZ 85257

$899,900

4 Beds

3 Baths

1,965 SqFt

Status Active

MLS # 6719124

Property Type Single Family Residence

Price Type --

Beautiful, updated home close to downtown Scottsdale, offers 4 bedrooms, 3 bathrooms, two separate primary bedrooms (each with own ensuite), one of which walks out to the covered back patio and meticulously maintained backyard. The bright, modern kitchen includes s/s appliances, an oversized island, plenty of storage space, and opens to great room. You will love the Pebble Sheen pool built in 2015 with a large Baja shelf for relaxing and sunbathing. The backyard is like your own private Oasis, with artificial grass, low water-use landscaping, large covered patio, and storage shed. Block wall in backyard was extended in height to secure more privacy. HVAC replaced in 2014 and roof in 2016. 2-car garage with epoxy floor is extra deep for your larger vehicles. Conveniently located close to Old Scottsdale, Greenbelt, Spring Training, world-class shopping, limitless restaurants.

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2144 E Firestone Drive Chandler, AZ 85249

$899,900

6 Beds

3.5 Baths

4,634 SqFt

Status Active

MLS # 6750615

Property Type Single Family Residence

Price Type --

Chandler Schools!This amazing home features vaulted ceilings in the formal living and dining areas, clean neutral paint, and plenty of natural light. Check out the huge gourmet kitchen with 42'' maple cabinets, SS appliances, walk-in pantry, island, & large breakfast area. Downstairs there are 2 bedrooms and 1.5 baths, upstairs you will find 4 spacious bedrooms and a massive loft. The owners suite has a private balcony with views of the San Tan Mountains, 2-way fireplace, and a big 2 sided walk-in closet. The backyard is complete with an extended covered patio, pebble-tec pool with water feature, and gas fire pit. The 4-car garage is huge, with cabinets and pull through door to yard! This special property has been immaculately maintained and shows great pride of ownership.

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776 Hideaway Lane Prescott, AZ 86303

$899,900

4 Beds

5 Baths

3,618 SqFt

Status Active

MLS # 6753655

Property Type Townhouse

Price Type --

This former townhome model home- ''Ponderosa'' model is the most spacious of all the town homes in the Aspen Creek Meadows community adjacent to Capitol Cayon golf course 2nd hole. Experience luxury living at it's finest. The gourmet kitchen with stainless high-end appliances, gas range w/double oven, pristine cherry cabinetry, pull-out shelves, under cabinet lighting, subway tile backsplash, and island seamlessly connect to the family room and dining area, ideal for entertaining. Soaring ceilings with natural light accentuate the home's high end finishes. Travertine and carpeted flooring throughout the home. A sliding glass door from the family room opens to a large deck w/ stunning views or nestle indoors & cozy up to the gas fireplace. The spacious townhome boasts four bedrooms, three ensuites, including a luxurious primary suite with a private balcony. The ensuite bathrooms features dual vanities, a large shower, and a walk-in closet. A den/loft provides versatility as a home office or flex-space. A private elevator makes accessibility to all 3 levels easy and effortless. Custom cabinets and wash sink in the laundry room. 3 temperature controlled zones, and 3 exterior decks. 2 car garage with overhead storage in built in cabinetry. Experience the finest of living behind private gates and all that Hassayampa Community Village has to offer.

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10551 E Diffraction Avenue Mesa, AZ 85212

$899,900

4 Beds

4 Baths

3,282 SqFt

Status Active

MLS # 6765417

Property Type Single Family Residence

Price Type --

Impressive 4 En-Suite Home in Eastmark with Pool & Teen-Media Room! Explore this magnificent 3,372 sq ft executive home by Meritage, designed for luxury living and entertainment. Nestled in lush landscaping, the property showcases a resort-style pool, private courtyard, and a spacious great room that invites you in with sophistication. Highlights: Gourmet Chef's Kitchen A dream for culinary enthusiasts, this kitchen features a Butler's Pantry, premium KitchenAid stainless steel appliances, convection wall ovens, a microwave, gas cooktop, beverage fridge, and granite countertops. The large island, with stylish lighting, is perfect for meal prep, while the adjoining breakfast nook and formal dining room with an elegant coffered ceiling make every meal a SEE MORE delight. Great Room for Entertaining Ideal for gatherings, this space includes surround sound and a wall of glass that opens to a covered pavered patio, blending indoor and outdoor living. Backyard Oasis The outdoor space is a true sanctuary with a Pebble Tec pool, Travertine waterfall, lagoon-style entrance, and a privacy wall. Enjoy manicured turf, pavered walkways, and a grassy area for play. Master Suite Retreat Unwind in the master suite featuring a coffered ceiling, room-darkening shades, and an expansive bath with dual sinks, a separate tub and shower, and a walk-in closet. Additional Bedrooms & Teen/Media Room Three additional bedrooms come with walk-in closets and private baths. The dedicated Teen/Media Room with surround sound provides a fun, functional space for relaxation or entertainment. Community & Amenities Located in the vibrant Eastmark community, enjoy access to fantastic amenities that enhance lifestyle and comfort. Don't miss this opportunity to own a beautiful, thoughtfully designed home.

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1713 W Las Palmaritas Drive Phoenix, AZ 85021

$899,900

3 Beds

2 Baths

1,794 SqFt

Status Active

MLS # 6763474

Property Type Single Family Residence

Price Type --

First time ever on the market!! 28,567 sq ft lot!! This is a great property. House could use some updating, but if you are looking for a large lot with a huge garage in back with a lift, an unfinished studio apt, and a large woodshop, this is it!! There is access to the back lot through the alley. This is a gated alley subdivision, so double security to get into the back. Nice dead end street. There is walking access to Royal Palm Park through the neighborhood. House features 3 bedrooms and 1.75 baths. 1 car garage and carport at the front of the house. Irrigated lot. There is another room off of the garage that could be a 4th bedroom or hobby room. 2 covered patios, diving pool that was resurfaced not long ago. Wonderful neighborhood with a neighborhood garden and lots of events!!

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3959 N Marlow Road Apache Junction, AZ 85119

$899,900

3 Beds

2.5 Baths

2,760 SqFt

Status Active

MLS # 6775474

Property Type Single Family Residence

Price Type --

Timeless, classic and comfortable describes this remarkable home with 3 bedrooms, 2.5 bathrooms and den. From the moment you arrive, you will captivated by the rugged landscape of the Superstition Mountains that surround you. The open floor plan effortlessly connects the living, dining and kitchen areas, creating a sense of spaciousness and light. The living room is framed with large, seamless windows offering amazing views that evolve with the changing colors of the sky and mountain throughout the day. The kitchen is a haven for culinary enthusiasts, providing ample room for preparing and entertaining large groups or intimate gatherings. The primary suite is a sanctuary for relaxation featuring large shower, jetted tub, dual vanities and two walk-in closets. The two additional

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