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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7232 E Eclipse Drive Scottsdale, AZ 85266

$895,000

3 Beds

2 Baths

1,856 SqFt

Status Active

MLS # 6760463

Property Type Townhouse

Price Type --

A truly exceptional find! This completely renovated home is located in a quiet and sought-after gated community in North Scottsdale. This home is in immaculate condition, showcasing elegant designer touches throughout. The gourmet kitchen is a chef's dream, equipped with a gas cooktop, granite countertops and backsplash, custom Alder cabinetry with pullout shelves, a built-in spice rack, top-of-the-line stainless Thermador appliances and an oversized farmhouse sink. The luxurious master bathroom offers a high-end, step-less entry shower with seamless glass doors, three shower heads, four body sprays, and a built-in Quartzite bench. It also features an oversized custom floating vanity with under-mount lighting, a quartzite countertop, elegant crystal and French gold faucets and a... stunning crystal chandelier, creating a spa-like retreat right at home. The walk-in master closet offers ample storage with its custom-built shelving. For home office needs, there's a custom-built workspace, complete with Alder wood finishes and a marble countertop, as well as a spacious double-wide filing cabinet. The laundry room is thoughtfully designed with upper and lower Alder cabinets, pullout shelves, marble countertops, and a large sink. French doors with retractable screens lead to the expansive backyard, featuring Travertine pavers, an extended patio, and lush greenery all while enjoying your own peaceful fountain. The garage is equipped with built-in cabinets and a durable epoxy floor. Fully OWNED SOLAR make the electricity bills nearly zero! The home also provides a full water filtration system as well as water softener. The community pool and spa are yours to enjoy, as well as the nearby mountain trails, with quick access to all of your Northern Scottsdale shopping and entertainment attractions. The HOA even covers the front yard maintenance. Home is available fully furnished for convenience!

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1890 W Roderick Lane Wickenburg, AZ 85390

$895,000

4 Beds

3 Baths

2,787 SqFt

Status Active

MLS # 6763892

Property Type Single Family Residence

Price Type --

Beautiful Wickenburg home surrounded with never-ending Mountain Views. Great central location. Double master, located on separate ends of home w/private access. Perfect for guests. Open floor plan for entertaining, granite countertops and custom cabinets throughout home. Back patio area to enjoy evening BBQs, equipped with hot tub for relaxation. Bring your horses - move in ready. Access right at property to ride/exercise horses through the wash. Equipped with pipe pens & shelter. Very clean & well-maintained home - MUST SEE!!

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5922 W Michelle Drive Glendale, AZ 85308

$895,000

3 Beds

2.5 Baths

2,176 SqFt

Status Active

MLS # 6776581

Property Type Single Family Residence

Price Type --

Finally! A spectacular horse property is now available. Fully updated kitchen with all new appliances and deep farmhouse sink. Impressive Calacatta floor tile throughout. Spacious master bedroom with a step-up sitting area / office / workout area. Formal living room & dining room, breakfast nook. Wood burning fireplace. Roof replacement in mid-2022. Three car garage with new epoxy floor. RV gate with plenty of room to park the toys, or multiple cars, or care for your horses! Beautifully landscaped front and back. Amazing backyard with a new gazebo and putting green is perfect for entertaining! Rear patio with new travertine and custom wood slat ceiling. Tack room, feeder and corral are already on site. Security cameras. Water filtration system. Tinted front windows for energy efficiency. Water fountain in backyard. Mini-farm with drip system - lemon, mulberry, fig, apples, olives, peaches. All appliances on the property stay with the home. Too many upgrades to list! This home is beyond awesome! Excellent location - convenient to shopping, schools, medical and Arrowhead Mall !

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29031 N 69th Drive Peoria, AZ 85383

$895,000

5 Beds

3.5 Baths

4,054 SqFt

Status Active

MLS # 6775061

Property Type Single Family Residence

Price Type --

Welcome to this stunning 5-bedroom, 3.5-bathroom, 2-story home nestled in the desirable Sonoran Mountain Ranch community in North Peoria. This spacious residence features a formal dining room, an oversized loft perfect for a second living space or game room, and a play pool for those warm Arizona days. Recent updates include new flooring on the bottom level, beautiful stone around the indoor fireplace and fresh paint in most rooms, giving the home a modern and inviting feel. Enjoy breathtaking mountain views, peaceful surroundings, and all the charm this home has to offer. Perfect for families or those who love to entertain, this home provides the perfect blend of comfort and style!

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1070 E Sandpiper Drive Tempe, AZ 85283

$895,000

3 Beds

2.5 Baths

2,664 SqFt

Status Active

MLS # 6776490

Property Type Single Family Residence

Price Type --

One of a kind on The Island! This custom 3 Bedroom + Den, 2 ½ Bath, 2,664sqft home with a Swimming Pool & Heated Spa backs to the greenbelt. You'll love the spacious feel of this open floor plan with large windows that bring in the natural light. Features include vaulted ceilings, a galley kitchen with stainless steel appliances, granite counters and tile backsplash, wall ovens, a window surround breakfast room with access to the covered patio, great room with stone, gas fireplace, and a living room/dining room. The Primary Suite is on the first level and includes a fireplace, a private exit to the swimming pool/spa, separate shower and tub, and walk-in closet. Two guest bedrooms and full bath are upstairs and a den and half bath are on the lower level. 2+ Car Garage with Vaulted Ceiling - lots of storage space! The lush, private backyard is Perfect for Get-Togethers! Be sure to check out all of the neighborhood amenities just one block away. You'll Love Living In The Lakes!

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7615 N 22nd Street Phoenix, AZ 85020

$895,000

3 Beds

2 Baths

1,979 SqFt

Status Active Under Contract

MLS # 6762493

Property Type Single Family Residence

Price Type --

Nestled in the sought-after hillside neighborhood of Biltmore Highlands, this classic Hallcraft Terrace home is situated on the western slope of Piestewa Peak and the Phoenix Mountain Preserve. This private hillside retreat features 3 bedrooms, 2 baths, a 2-car garage, and a secluded backyard, perfect for relaxation and entertaining. The residence is within close proximity to an extensive hiking trail system in the Phoenix Mountain Preserve, just a short walk from your doorstep. Conveniently positioned near the 51 freeway, this home provides easy access to the entire city and is only minutes away from downtown Phoenix and Sky Harbor Airport. Come and discover the distinctive lifestyle that Biltmore Highlands has to offer! Pool photos are a rendering for illustration purposes.

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12927 W Bent Tree Drive Peoria, AZ 85383

$895,000

3 Beds

3 Baths

2,336 SqFt

Status Active Under Contract

MLS # 6763713

Property Type Single Family Residence

Price Type --

Welcome to resort living in Trilogy at Vistancia. This beautiful 3 bed and 3 bath 2.5 car garage home also has a private casita for guests. As you enter the home you will pass through a grand foyer entry way. The chefs kitchen has been remodeled with new quartzite counter tops and large Quartzite island, newly added full pullouts in all lower cabinets, custom backsplash and new appliances. The Primary bath has a remodeled walk-in shower, new vanities, sinks, faucets countertops and backsplash tile.The Study/Wine Room boasts a beautiful wine refrigerator that conveys. The backyard is simply paradise. Enjoy entertaining all your guests in this resort like backyard with outdoor kitchen, pool and hot tub and putting green. Solar owned and paid off.

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3101 E Acoma Drive Phoenix, AZ 85032

$895,000

4 Beds

2 Baths

2,230 SqFt

Status Active

MLS # 6687227

Property Type Single Family Residence

Price Type --

Designer's Dream Home with exquisite views! One-of-a-kind home on a 1/2 acre hillside lot with elevated mountain views and privacy. Chef's kitchen is a joy to cook in and entertain: Viking cooktop and commercial fan, birch island and cabinets, double-oven + double warming ovens, wine fridge, and more. Custom flooring is a mosaic of natural wood. Vaulted ceiling, tin panels and concrete accent walls add a rich texture to the open living spaces. Live freely with no HOA. Brand new roof and backyard turf allow easy care and maintenance. The home itself is a work of art, you have to experience it for yourself to see!

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15052 N 100th Place Scottsdale, AZ 85260

$895,000

3 Beds

2 Baths

1,677 SqFt

Status Active

MLS # 6689619

Property Type Single Family Residence

Price Type --

OFFERED COMPLETELY TURN-KEY INCL. LINENS AND PATIO FURNTURE! Just bring your suitcase and move right in! Sparkling clean updated Great Room split 3 bedroom 2 bath with pool and 2 car garage on a corner lot. Vaulted ceilings and huge windows with views. Control 4 system, RING cameras front and back. Also for lease 30 day minimum no maximum.

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7122 S Champagne Way Gilbert, AZ 85298

$895,000

5 Beds

4 Baths

4,590 SqFt

Status Active

MLS # 6707227

Property Type Single Family Residence

Price Type --

Oversized lot with pool, no neighbors behind you. 4 large bedrooms, 4 full baths, 1 den, 1 large playroom, office. Primary bedroom has an open den/nursery/office attached. Balcony off the primary bedroom runs the entirety of the house. The primary bathroom features a large shower and an oversized drop-in tub. 2 of the bedrooms upstairs share a jack-and-jill bathroom. The other upstairs bedroom has its bathroom off the hall. The media room is ready for your movie theater seating. Downstairs has an office off the foyer. Duel sets of stairs. The downstairs entertainment room features a bar with under-bar lighting and a spot for your pool table. Backyard patio runs the entirety of the house. Gas fire pit, seating and BBQ. Pool heat pump does not work and will not be repaired or rep

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44421 N 20th Street New River, AZ 85087

$895,000

4 Beds

3 Baths

2,994 SqFt

Status Active

MLS # 6709540

Property Type Single Family Residence

Price Type --

Move in Ready and Now Priced To Sell! This Custom Mt View Home with pool & Oversized 4 car garage on a 1.38 Acre parcel and NO HOA is located at the end of a cul-de-sac. Private street with only 3 other homes! Freshly Painted and New Carpeting in all bedrooms...Large open concept living areas and generous room sizes throughout. Spacious Kitchen with Granite, B-fast Bar, Walk-in Pantry and informal dining/Breakfast room... HUGE Split Primary bedroom with private pool access, Separate Spa Tub & Shower and Dual Vanities! Features Include an additional Master Suite, Large Walk-in Closets in every bedroom! Cool Pool with a Baja Step & built-in Table, 2 Fireplaces, a really nice Covered Patio, a Giant Courtyard in front and a Pergola out back. Way Too many features to list

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7660 E Golden Eagle Circle Gold Canyon, AZ 85118

$895,000

3 Beds

3 Baths

2,382 SqFt

Status Active

MLS # 6716941

Property Type Single Family Residence

Price Type --

REDUCED! This lock & leave villa in premier Superstition Mountain Golf & Country Club is tastefully remodeled & requires no yard work. You can spend your time lounging or playing! Located in a coveted Golden Eagle location, it's like an oasis in the desert. It backs to the park with babbling stream and Superstition Mountain views. Casita has 1 bed/1bath, separate entrance. RARE TWO CAR driveway! Smart home capabilities allows you to manage your home with ease from wherever you are. 24/7 guard gated community. Two newer HVACS, Water Heater, Kitchen Appliances. Amenities included with private club membership. 36 holes of Jack Nicklaus golf, pool, pickleball, tennis, bocce, fitness center. 30 miles to Sky Harbor, 20 miles to Mesa Gateway, 9 miles to retail & dining, 5 miles to hiking trails.

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