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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22649 E Alyssa Road Queen Creek, AZ 85142

$894,701

5 Beds

4 Baths

3,396 SqFt

Status Active

MLS # 6774207

Property Type Single Family Residence

Price Type --

Last opportunity to own a Tri Pointe Home in Madera! Single-level 5-bedroom home featuring endless designer selections throughout. There is a gen smart suite with a kitchenette and private entrance. The kitchen boasts executive appliances with double wall ovens and a 36' gas cooktop, hana sky quartz countertops with a waterfall island, custom backsplash, and benton white stacked cabinets. There is also a 16' multi panel sliding glass door at the great room, custom tile surrounds at the primary bath, upgraded bath fixtures in stainless brilliance, and a laundry sink with base cabinets. Other highlights include square drywall corners with contemporary baseboards and door trim, 2 inch faux wood blinds, upgraded interior paint in Snowbound, 6 x 36 vicinity gray brown plank tile, and more!

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2601 E Shangri La Road Phoenix, AZ 85028

Open House

$894,500

4 Beds

2.5 Baths

2,334 SqFt

Status Active

MLS # 6749995

Property Type Single Family Residence

Price Type --

Oversized lot perfectly situated in a highly desirable neighborhood on a peaceful cul-de-sac, this exceptional home offers stunning mountain views and an array of modern upgrades. The bright entryway welcomes you into an open front room filled with abundant natural light, setting the stage for the rest of this beautiful home. The spacious, updated kitchen features quartz countertops, elegant cabinets with crown molding, floating shelves, and stainless steel appliances, making it perfect for both everyday living and entertaining. Updated flooring flows seamlessly throughout the home's main areas, enhancing the home's contemporary feel. The large, open family room, highlighted by exposed ceiling beams, provides a warm and inviting space for gatherings. The expansive primary retreat is a true sanctuary, complete with outdoor access, ideal for enjoying the serene surroundings. With four bedrooms plus a separate office space, this home offers plenty of space for everyone. Step outside to discover a backyard oasis on one of the largest lots in the neighborhood, featuring a sparkling pool and a private, landscaped yard. A spacious covered patio with extensive pavers invites you to enjoy outdoor living year-round, making this home an entertainer's dream. The large side yard with an RV gate provides ample storage or project space. Energy-efficient windows throughout ensure comfort and cost savings. Don't miss the chance to own this perfect blend of style, comfort, and convenience in one of the area's most sought-after locations!

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27600 N 130th Avenue Peoria, AZ 85383

$894,000

2 Beds

2.5 Baths

2,610 SqFt

Status Active

MLS # 6732883

Property Type Single Family Residence

Price Type --

NEW LOWER PRICE - INCLUDES DINING ROOM AND OWNERS SUITE FURNITURE. This SOLAR (Avg ELECTRIC BILL is $18/month - WOW!!) Aurora is IMPRESSIVE. The charming curb appeal is equipped with LUSH PALMS, PAVER WALKWAY & a DRAMATIC ARCHED GATE. Step inside and admire all the IMPRESSIVE upgrades & Custom Touches! Beautiful TILE FLOORING thru-out (no carpet!!). The Spacious Kitchen is a Show-Stopper w/ an atmosphere to inspire one to cook & entertain -2 ISLANDS, Built-in GAS Appliances, Roll-out shelving, Under Cabinet Lighting, Pendant Lighting & high-end RAISED-PANEL Maple Cabinetry. Located off the Kitchen is a PRIVATE COURTYARD enhanced w/ a PERGOLA! Owner's Suite is Oversized w/ a BAY WINDOW & has Access to the RESORT BACKYARD! The Spa-like Bath HAS BEEN REMODELED - custom Tile Shower & Tub Surround w/ Stone C-tops. Situated off the Owner's Suite You'll FIND a BONUS ROOM that is flexible for all your needs!! Step outside to paradise and enjoy the spectacular resort backyard oasis! The HEATED POOL & PRIVATE SPA is the perfect setting to enjoy the EXPANSIVE DESERT & MOUNTAIN VIEWS!! The Spill-over WATER FEATURE from the spa is the perfect touch! A Lounge Area with Built-in BBQ is inviting and the perfect space to enjoy the Breathtaking Views. Additional upgrades: Guest Suite w/ Remodeled finishes, Den w/ Double Doors, Plantation Shutters, ceiling fans, soft water, RO, laundry sink, garage storage & epoxy floors, sun shade at the back patio and so much more! This HOME checks the boxes on the wish list - take a look yourself - your dream home awaits you!!

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1001 N Peppertree Drive Gilbert, AZ 85234

Open House

$894,000

5 Beds

3.5 Baths

3,183 SqFt

Status Active

MLS # 6774014

Property Type Single Family Residence

Price Type --

Custom Home in Prestigious Gated Val Vista Lakes Community Step into luxury with this stunning custom home featuring vaulted ceilings and an impressive spiral quartz staircase as you enter. Designed with elegance and comfort in mind, the interior boasts travertine flooring throughout and a cozy wood-burning fireplace. The master bedroom on the first floor offers convenience and privacy with separate entrance to backyard. Oversized walk-in closets. The bonus room can be a fifth bedroom including bathroom. Was previously a mother-in-law suite with separate access to downstairs. The front yard is beautifully landscaped with upgraded turf and elegant hardscape. The backyard is an entertainer's dream, featuring a sparkling Pebble Tec pool with custom flooring and a serene water feature Enjoy seamless indoor-outdoor living with an oversized custom screen door and a smart home security system for peace of mind. Unwind in the separate built-in spa, or host guests under the large gazebo. A grassy area leads to gated access to the greenbelt, where endless walking and bike paths await. Located near San Tan Mall, with wonderful shopping, restaurants, and entertainment just minutes away, this home perfectly blends luxury, convenience, and community.

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34213 N Borgata Trail Queen Creek, AZ 85144

$893,398

3 Beds

3.5 Baths

3,031 SqFt

Status Active

MLS # 6721281

Property Type Single Family Residence

Price Type --

Welcome to this new home in Prelude at Oro Ridge boasting a 3 car garage, 3 bedrooms, a den, and 3.5 bathrooms! This well-thought-out floorplan will not disappoint! The kitchen features Jennaire Stainless Steel appliances, Quartz Countertops, Urban Taupe Cabinets, and a waterfall island. The primary suite is lavish with a freestanding soaking tub in the ensuite. You will love the upgraded flooring throughout! Do not miss out on this gorgeous home!

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1280 E Majestic Drive Prescott, AZ 86303

New

$890,000

4 Beds

3 Baths

2,477 SqFt

Status Active

MLS # 6782778

Property Type Single Family Residence

Price Type --

This exquisite two-story home is just minutes from downtown Prescott and features breathtaking mountain views. The main level includes a spacious formal entry, a bright living room, a luxurious south-facing master suite, and an additional bedroom off the kitchen and informal dining area. Enjoy outdoor entertaining on the expansive patio, perfect for professional-level grilling. The lower level includes a second master suite, a versatile bedroom, a cozy media room, and a family room with spectacular views. All appliances are brand new stainless steel, and the home is smoke-free. With a two-car garage, propane gas, well, and septic system, this property combines modern living with natural beauty. Experience one of the best views in Prescott.

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14247 N Honeysuckle Drive Fountain Hills, AZ 85268

$890,000

3 Beds

2.5 Baths

2,526 SqFt

Status Active

MLS # 6778223

Property Type Single Family Residence

Price Type --

Lovely home in high demand Sunridge Canyon. Enjoy panoramic eastern rear mountain and moon rise views from 4 Peaks to the Goldfileds! Great split bedroom floor plan with formal living & dining plus a great room style open kitchen and family room. Tile and real wood floors- minimal carpet. Master bath has huge walk-in shower. New exterior paint 2024. Existing furnishings (except master mattresses) available on a separate bill of sale at 0 cost. 12 month minimum on rentals.

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1310 Kenrick Drive Wickenburg, AZ 85390

$890,000

3 Beds

2 Baths

1,490 SqFt

Status Active

MLS # 6745756

Property Type Single Family Residence

Price Type --

Welcome to your peaceful retreat in Wickenburg! This beautifully-crafted log home offers 3 bedrooms & 2 baths across 1,490 square feet of comfortable living space, nestled on 12.75 acres of endless possibilities. Enjoy complete privacy while being conveniently close to historic Wickenburg, just 4 miles from the Wickenburg Ranch Golf & Social Club, and near all the local restaurants & shopping spots. Step inside to a warm & inviting interior, where exposed beams on the vaulted ceilings add character, and soft carpet ensures coziness in all the right places. Enjoy the bright & airy living room, perfect for entertaining, and flows seamlessly into the dining area and the fully-equipped kitchen; A cook's delight with ample cabinet & counter space, a peninsula with breakfast...CONTINUE READING. ...breakfast bar seating. Unwind in the Arizona room, ideal for relaxation at any time of day. The romantic main suite features a cozy sitting area, balcony access, a private bathroom & a walk-in closet. The other two bedrooms are perfect for guests, sharing a full bathroom that's just right for their needs. Outside, the views are simply breathtaking, with stunning sunsets behind the mountains, all enjoyed from the comfort of your covered patio. The expansive, fenced backyard offers room for all your outdoor passions, from storing your toys in the storage shed, working in the detached 2-car garage with a carport & workshop, to caring for horses in the arena, corrals & vast roaming space. This property is more than just a home; it's a lifestyle waiting for you to make it your own. Come explore all the potential this exceptional property has to offer! Includes two parcels: APN: 50503-023C and APN: 505-03-023J. Property includes 25x50 Pole Barn; 20x14 Corral with 100 sq. ft Horse Arena: 14x20 Shop Tack Shed; Goat Pen; Bird Aviary; Chicken Pen; Metal Roof on Home and Garage.

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3459 E Mockingbird Drive Gilbert, AZ 85234

$890,000

4 Beds

3 Baths

3,038 SqFt

Status Active

MLS # 6748919

Property Type Single Family Residence

Price Type --

GORGEOUS Home. UPGRADE galore. BASEMENT Home. LOCATION LOCATION LOCATION!!!. Conveniently located 2 miles from the 60 and 3 miles from the 202 and mile from major shopping area. REMODELED within the last year with new windows, blinds, sliding door, light fixtures, fans, flooring paint, water-softener system with tankless water heater, painted kitchen cabinets, etc (too many to list). Solar panels were installed in 2021 together with the new roof. A must see to appreciate this beautiful and immaculate home.

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2110 N 68th Place Scottsdale, AZ 85257

$890,000

4 Beds

3 Baths

1,932 SqFt

Status Active

MLS # 6748869

Property Type Single Family Residence

Price Type --

Experience unparalleled luxury in this newly renovated Scottsdale gem, just moments from Old Town. This modern marvel boasts four bedrooms, including dual master suites, and three opulent bathrooms. The primary suite features a lavish ensuite with dual vanities, a walk-in shower, soaking tub, and expansive closet. The chef's kitchen shines with granite countertops, a gas range, stainless steel appliances, and a large island with a prep sink and wine fridge. Elegant wood-like tile flooring and recessed lighting enhance the ambiance throughout. Step outside to a private oasis with a sparkling diving pool, lush artificial grass, and a putting green. Highlights include a 2022 5-ton AC unit, a spacious air-conditioned laundry room, new doors and windows, and an epoxy-floored 2-car garage.

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3248 S Golden Barrel Court Gold Canyon, AZ 85118

$890,000

3 Beds

3 Baths

2,608 SqFt

Status Active

MLS # 6753279

Property Type Single Family Residence

Price Type --

NEWLY UPDATED Well appointed villa in SUPERSTITION MOUNTAIN.. NEW GRANITE IN KITCHEN AND ALL THE BATHROOMS. NEW FLOORING IN GREAT ROOM, DINING AREA, KITCHEN AND PRIMARY BEDROOM. NEWLY PAINTED INSIDE. Three bedroom, three baths. Open great room/dining room/kitchen layout. Viking appliances, Wet bar. WINE WALL.Large master suite with laundry conveniently located off the primary suite closet Two side patios - one with built in BBQ and fire table and the other with an above ground hot tub. Corner lot. Walking distance to the fitness center and TWO JACK NICKLAUS GOLF COURSES! Not a golfer? Enjoy pickle ball, bocce, tennis, hiking and many other activities You'll love it here!. Twenty minutes to Gateway Airport and 35 minutes to Phoenix Sky Harbor airports.Maintenance free living at its best Club Membership and amenities under a separate agreement. Buyer and/or buyer's agent to verify all pertinent information including square footage.

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4870 W Mountain Hollow Loop Show Low, AZ 85901

$890,000

3 Beds

2 Baths

3,121 SqFt

Status Active

MLS # 6775820

Property Type Single Family Residence

Price Type --

Welcome to your dream home! This newly constructed house is a perfect blend of modern design and comfortable living. With ample space and luxurious amenities, it promises to meet all your needs and more. The heart of this home features a beautifully designed living space that seamlessly combines the living room, dining area, and kitchen. It is perfect for entertaining guests or enjoying quiet family evenings. The primary room is an oasis of tranquility, that offers a large space with an en-suite bathroom. Two generously sized bedrooms share a well-appointed bathroom, ideal for family or guests. A modern kitchen equipped with top-of-the-line appliances, ample counter space, and elegant cabinetry. It's a chef's delight! The extra storage space that is an additional 800 sq ft under the house with a secure slab foundation. Perfect for all your storage needs or a potential workshop. The garage is 736 sq ft that can accommodate multiple vehicles and additional storage. The property offers a beautifully landscaped yard, providing a serene environment for outdoor activities and relaxation. The located in a peaceful neighborhood, this home offers easy access to local amenities, schools, and parks. It's a perfect setting for families and professionals alike. Don't miss the opportunity to make this stunning new build your forever home!

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