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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8648 E San Bruno Drive Scottsdale, AZ 85258

Open House

$899,000

3 Beds

2 Baths

1,930 SqFt

Status Active

MLS # 6737100

Property Type Single Family Residence

Price Type --

Welcome to your dream home in the heart of McCormick Ranch! This amazing property sits on a MASSIVE lot, with plenty of room to expand the home, build a detached casita, and a pool! Nestled in a PRIME location, you'll enjoy direct access to the scenic biking path along the lake, and a short walk to all your favorite restaurants and bars! Inside, the home has a tremendous layout with three beds and two bathrooms. The open floor plan is designed for both comfort and style, featuring a gourmet kitchen with a wood burning fireplace, spacious living areas, and walk in closets in all bedrooms. Large windows flood the space with natural light, creating a warm and inviting atmosphere. If you're looking for a home in McCormick Ranch with endless possibilities, then this one's for you!

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102 E Eugie Avenue Phoenix, AZ 85022

Open House

$899,000

4 Beds

2 Baths

2,053 SqFt

Status Active

MLS # 6759847

Property Type Single Family Residence

Price Type --

OUTDOOR LIVING PARADISE! Resort style backyard with over $200,000 put into the backyard in 2022. Completely remodeled home in the desirable Moon Valley area. Corner lot with mountain views. Open floor plan with remodeled kitchen, bathrooms, flooring, and lighting. Perfectly manicured inside & out! The private backyard is ready for entertaining with new pool, sunken patio with TV, fireplace, refrigerator and grill. Additional gas fireplace for entertaining into the night. New putting green. New A/C units, newer hot water heater. Leased Solar. Great location close to restaurants, shopping, golf, and parks. Easy freeway access to the 51 and I17. Don't miss out on this one!

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3519 E Aspen Court San Tan Valley, AZ 85140

Open House

$899,000

4 Beds

2.5 Baths

2,577 SqFt

Status Active

MLS # 6773189

Property Type Single Family Residence

Price Type --

Luxurious Country Living with horse privileges! This exquisite 4 bedroom, 2.5 bath home is situated on a sprawling 1.4 acre irrigated lot with no HOA restrictions and a large open 4 car garage!! Upon entry, you are greeted with soaring 10' ceilings and an open concept floorplan that offers upgraded finishes throughout including; wood beams, upgraded lighting, shiplap wall accents, wood look tile, upgraded carpet and 5'' baseboards. The spacious kitchen offers not only elegance but functionality with an oversized kitchen island, quartz countertops, floor to ceiling shaker cabinets, induction cooktop, brick backsplash, custom hood and is equipped with beautiful stainless steel appliances including a large built-in refrigerator. Enjoy heading out to your property through the 12' multi panel sliding door.The large covered patio area overlooks the lush property that has been tastefully landscaped and has established grass that is flood irrigated. Bring your horses, toys, and enjoy the country living lifestyle while still being closely located to shopping, restaurants and schools.

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17779 E Silver Sage Lane Rio Verde, AZ 85263

Open House

$899,000

3 Beds

2.5 Baths

2,316 SqFt

Status Active

MLS # 6674812

Property Type Single Family Residence

Price Type --

Introducing the Lightly lived in Highly upgraded 2316 sqft Contemporary Brasada model built in 2022. It includes a custom front courtyard, an extra hobby room, and a double doored Den for flexibility in room usage. Both, The Primary Suite and The Formal dining room features upgraded Sliding doors leading to the patio. Other Key Upgrades include added doors to the Primary bathroom and Pantry along with the Built-in Monogram kitchen appliances. The front & the backyard is fully landscaped with pavers, synthetic grass, fruit trees, and a green hedge. The extension of Great room tiles into the patio via the upgraded large Stack slider doors seamlessly connect with the outdoors to enjoy the stunning views of the FourPeaks. Neutral grays and whites create a cohesive aesthetic throughout

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7629 N Via De La Campana -- Scottsdale, AZ 85258

Open House

$899,000

4 Beds

2 Baths

1,917 SqFt

Status Active

MLS # 6751738

Property Type Single Family Residence

Price Type --

You don't want to miss out on this affordable home in the heart of McCormick Ranch! Walk around the corner to beautiful Comanche Park This beautifully maintained property boasts a brand new Trane AC system installed in 2023 and recently updated Anderson windows (with warranty!), The split floor plan offers privacy and flexibility. Step outside to your own private oasis featuring a resurfaced pool with efficient equipment and a safety net for peace of mind. The backyard is a paradise for both pets and kids, with pet-friendly turf, a children's play set, and even a pomegranate tree! This home has strong bones and is ready for new owners to add their touch!

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1037 W Ridge Road Apache Junction, AZ 85120

$898,990

4 Beds

3.5 Baths

3,251 SqFt

Status Active

MLS # 6726565

Property Type Single Family Residence

Price Type --

BR, 3.5 baths, enclosed office and enclosed tv room. 14-foot ceiling in family room with 16-ft multistacking SDG in family room leading to patio. Kitchen with 54-inch stacked cabinets with morel and white cabinets in kitchen. Stainless steel appliances with chimney hood. Tile backsplash to top of chimney hood. Dining room cabinets with floating shelves. All bathrooms with upgraded tile tub and tile showers. All bathrooms with upgraded quartz tops. The owners' bedroom with 14-foot ceilings and wall of windows. Includes super shower with upgraded tile work and rain can. Door leading to utility room. Full cabinets with sink. 4-car garage.

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10418 E Morning Star Drive Scottsdale, AZ 85255

Open House

$898,800

3 Beds

2 Baths

1,548 SqFt

Status Active

MLS # 6779922

Property Type Single Family Residence

Price Type --

Step into modern elegance as your enter this beautifully remodeled home in McDowell Mountain Ranch. Walls were removed to make this floorplan open & bright. The heart of the home, a sun-drenched kitchen, is a culinary dream featuring marble countertops, a high-end Bertazzoni gas range and custom hood, stainless appliances and all-new white shaker cabinets adorned with stylish gold hardware and lighting. The breakfast bar and dining area seamlessly blend into the main great room with chic linear fireplace and shiplap surround. 2 bedrooms & 2 baths + office with modern glass slider door offers a private workspace adjoining the great room. All new floors, baseboards, fixtures throughout. Charming backyard with extended covered patio, pristine turf & view fencing backs to wash. Owned Solar! **SEE LIST OF UPDATES IN DOCUMENTS** Award winning McDowell Mountain Ranch is a premier master planned community located in North Scottsdale. Situated at the foothills of the McDowell Mountains, enjoy the beautiful desert serenity yet also have all the conveniences of living in-town just outside the neighborhood. The 101 Freeway is 5 minutes away, as well as restaurants, shopping, groceries, and so much more! This friendly neighborhood features 2 heated community pools/spas, playgrounds, basketball courts, tennis courts, and one of the best Pickleball leagues in town! The HOA hosts several events throughout the year for everyone to enjoy and connect with neighbors. Numerous trails, both paved & unpaved that meander throughout the community. McDowell Mountain Golf Club, designed by Phil Mickelson, with the clubhouse & restaurant, is open to the public. The City of Scottsdale Aquatic Center w/Lazy River & Library is close by, in addition to miles and miles of hiking, biking & equestrian trails at the landmark Gateway to the McDowell Sonoran Preserve trailhead.

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2501 N 81st Way Scottsdale, AZ 85257

$898,500

3 Beds

2 Baths

1,962 SqFt

Status Active Under Contract

MLS # 6709035

Property Type Single Family Residence

Price Type --

MAGNIFICENT, FULLY FURNISHED MID-CENTURY MODERN! This exquisite Scottsdale estate features four functional rooms, all equipped with beds, 2 full baths, open kitchen space overlooking remodeled backyard. Large chef's kitchen boasts stainless steel appliances, granite countertops & massive island. Wood plank tile flooring and new paint t/o, upgraded dual pane windows and modern accents, make this home feel brand new! Backyard has just undergone a full remodel with a new pebble tech pool, custom mural, and many spaces for entertaining inside and out! You'll love that this home boasts an interior laundry room and 2 car covered carport. All of this is just a bike ride to Old Town Scottsdale with endless opportunities for shopping, dining, and entertainment!

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770 S Ocean Drive Gilbert, AZ 85233

New

$898,000

4 Beds

3 Baths

2,757 SqFt

Status Active

MLS # 6777499

Property Type Single Family Residence

Price Type --

This is it! Stunning Single Level Waterfront Home with a 3-car garage in the Highly Desirable Islands Lakes Community. Walk through the Front Door and you will be Wowed with the Waterfront Views. Spacious and Open Floorplan Cathedral Ceilings Plantation Shutters. This Waterfront Home is Perfect for Relaxing and Entertaining inside and out. Kitchen has Granite Counters Built-in Ovens, Cooktop and Microwave and large Pantry. Primary Bedroom is Huge with walk in Closet next Exit to EXTENDED 18 FT.COVERED PATIO with fantastic views from your Waterfront Oasis. Covered Patio and a Boat Dock where you can kayak, or go fishing right in your very own backyard. Live a unique lifestyle in this wonderful waterfront community! Make sure not to miss it!

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20144 E Rosa Road Queen Creek, AZ 85142

$898,000

6 Beds

4.5 Baths

4,402 SqFt

Status Active

MLS # 6744335

Property Type Single Family Residence

Price Type --

Discover your dream home in this highly upgraded 6-bedroom, 4.5-bath oasis! This spacious residence boasts a stunning open floor plan, perfect for both entertaining and comfortable family living. Step into a beautifully designed kitchen featuring modern appliances, elegant countertops, and ample storage, seamlessly flowing into a generous living area. Retreat to the luxurious primary suite, complete with a spa-like en-suite bath and walk-in closet. Outside, enjoy your private paradise with a sparkling pool, ideal for relaxing or hosting summer gatherings. With thoughtful upgrades throughout and plenty of room to grow, this home is a rare find that combines luxury and functionality. Don't miss the opportunity to make this exquisite house your HOME!

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2325 E Beachcomber Drive Gilbert, AZ 85234

Open House

$898,000

4 Beds

3 Baths

3,425 SqFt

Status Active

MLS # 6736562

Property Type Single Family Residence

Price Type --

Location location! Gorgeous remodel! Welcome to your dream home located on a corner lot in Val Vista Lakes community! A perfect blend of luxury and comfort. Soaring vaulted ceilings that enhance the spacious feel of the grand foyer and formal dining area, large main room with a dramatic fireplace as the centerpiece. Entertain effortlessly with the stylish wet bar. Upscale fixtures and lighting throughout the home. The eat-in kitchen is a highlight, featuring stainless steel appliances, new cabinets, elegant quartz countertops, a generous pantry and large center island plus dining area. Upstairs, you'll find a sizable loft media room that offers versatile space for relaxation or play, a hidden playroom in an upstairs bedroom and reading area. Retreat to the luxurious primary bedroom, where tranquility awaits. Enjoy direct access to the backyard oasis along with an upscale ensuite bathroom that features dual sinks, a standalone soaking tub, and walk-in closet. The downstairs bonus room can serve as a gym, office, or other function that suits your lifestyle. Outside is your private paradise! A lush grass front yard. The backyard includes a huge covered patio, beautiful paver decking, ramada, and lap pool, perfect for entertaining! Don't miss your chance to own this stunning home!

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19835 W Meadowbrook Avenue Litchfield Park, AZ 85340

$897,500

4 Beds

2.5 Baths

2,680 SqFt

Status Active

MLS # 6757946

Property Type Single Family Residence

Price Type --

Must See!! Indulge in everything this corner lot horse property has to offer! Beginning at the stained-glass double doors, you're welcomed into an open floor plan that extends into 3 bedrooms, 2 full bathrooms, and additional office w/ a ½ bathroom and private entrance. With NO HOA, owned solar panels, 2 Trane systems w/UV Filters, 2 new water heaters, commercial greywater drip system for landscaping, owned Culligan Water Softener and R/O system, and ADT Doorbells & System, this property truly offers serenity and savings. The backyard features professional landscaping, covered back patio, custom 10x10 barn w/water and electricity, and a cement slab wash rack for horses! P.S. Main Bath w/Twin Showers and Soaking Jetted Tub, Auto-Waterers for Horse Shed, Exterior painted 2022 w/5 yr warrant

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