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.

Click Here to See What Your Home is Worth

Listing types.

For Sale

For Rent

Land

Multifamily

Commercial

Location Search Nearby

BedsAny1+2+3+4+5+6+

BathsAny1+2+3+4+5+6+

Price MinAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Price MaxAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Advanced Options

Property TypeAnyApartmentManufactured HomeSingle Family ResidenceTownhouseTwin Home

School District

Address, MLS# or Keyword

Home SizeAny600 ft2800 ft21,000 ft21,200 ft21,400 ft21,600 ft21,800 ft22,000 ft22,200 ft22,400 ft22,600 ft22,800 ft23,000 ft23,500 ft24,000 ft24,500 ft25,000 ft25,500 ft26,000 ft2

YearAny2024+2023+2022+2021+2020+2019+2018+2017+2016+2015+2014+2013+2012+2011+2010+2009+2008+2007+2006+2005+2004+2003+2002+2001+2000+1999+1998+1997+1996+1995+1994+1993+1992+1991+1990+1980+1970+1960+1950+1940+1930+

Distressed

Open House

Location Search Nearby

BedsAny1+2+3+4+5+6+

BathsAny1+2+3+4+5+6+

Price MinAny$500$600$700$800$900$1,000$1,100$1,200$1,300$1,500$1,600$1,700$1,800$1,900$2,000$2,250$2,500$2,750$3,000$3,250$3,500$3,750$4,000$4,500$5,000$5,500$6,000$6,500$7,000$7,500$8,000$8,500$9,000$9,500$10,000

Price MaxAny$500$600$700$800$900$1,000$1,100$1,200$1,300$1,500$1,600$1,700$1,800$1,900$2,000$2,250$2,500$2,750$3,000$3,250$3,500$3,750$4,000$4,500$5,000$5,500$6,000$6,500$7,000$7,500$8,000$8,500$9,000$9,500$10,000

Advanced Options

Property TypeAnyApartmentManufactured HomeSingle Family ResidenceTownhouseTwin Home

School District

Address, MLS# or Keyword

Home SizeAny600 ft2800 ft21,000 ft21,200 ft21,400 ft21,600 ft21,800 ft22,000 ft22,200 ft22,400 ft22,600 ft22,800 ft23,000 ft23,500 ft24,000 ft24,500 ft25,000 ft25,500 ft26,000 ft2

YearAny2024+2023+2022+2021+2020+2019+2018+2017+2016+2015+2014+2013+2012+2011+2010+2009+2008+2007+2006+2005+2004+2003+2002+2001+2000+1999+1998+1997+1996+1995+1994+1993+1992+1991+1990+1980+1970+1960+1950+1940+1930+

Location Search Nearby

Lot SizeAny1+ Acres2+ Acres3+ Acres4+ Acres5+ Acres6+ Acres7+ Acres8+ Acres9+ Acres10+ Acres20+ Acres30+ Acres40+ Acres50+ Acres

Price MinAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Price MaxAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Advanced Options

Neighborhood

Address, MLS# or Keyword

Location Search Nearby

Price MinAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Price MaxAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Advanced Options

School District

Address, MLS# or Keyword

YearAny2024+2023+2022+2021+2020+2019+2018+2017+2016+2015+2014+2013+2012+2011+2010+2009+2008+2007+2006+2005+2004+2003+2002+2001+2000+1999+1998+1997+1996+1995+1994+1993+1992+1991+1990+1980+1970+1960+1950+1940+1930+

Location Search Nearby

Lot SizeAny1+ Acres2+ Acres3+ Acres4+ Acres5+ Acres6+ Acres7+ Acres8+ Acres9+ Acres10+ Acres20+ Acres30+ Acres40+ Acres50+ Acres

Price MinAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Price MaxAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Advanced Options

Address, MLS# or Keyword

YearAny2024+2023+2022+2021+2020+2019+2018+2017+2016+2015+2014+2013+2012+2011+2010+2009+2008+2007+2006+2005+2004+2003+2002+2001+2000+1999+1998+1997+1996+1995+1994+1993+1992+1991+1990+1980+1970+1960+1950+1940+1930+

View As: Thumbnails List

Sort by: Select Price, Low to High Price, High to Low Newer Listings First Older Listings First Open House Date

20382 N 53rd Avenue Glendale, AZ 85308

$875,000

4 Beds

3 Baths

2,314 SqFt

Status Active

MLS # 6779095

Property Type Single Family Residence

Price Type --

This is the Arrowhead Lakes home you have been waiting for! Beautifully updated 4 bedroom 3 bath home with incredible long lake water views! Indulge in amazing sunset views on a private, quiet cul-de-sac lot. Newly updated kitchen and bathrooms, including one bedroom and bath on the lower level, and new interior paint throughout the home emphasize the light and airy feeling throughout the home. Entertaining oversized pavered backyard with heated in ground spa grotto to enjoy your lake and sunset views from. This beautiful retreat has been lovingly maintained and it shows! Very low maintenance outdoors also makes this an ideal second home! Don't wait to see this amazing home in prestigious Arrowhead Lakes!

View Property

2437 S Racine Lane Gilbert, AZ 85295

$875,000

4 Beds

3 Baths

2,862 SqFt

Status Active

MLS # 6779508

Property Type Single Family Residence

Price Type --

This is an immaculate, beautiful home! Don't let this one get away! Remodeled kitchen and great room, with an open concept! Lot's of bright, open spaces! Beautiful finishes! Remodeled master bath space! Nothing has been left untouched in this amazing corner lot home! Massive 13k sq ft. lot with no neighbors behind! Perfect space to add a pool if you desire! Beautiful neighborhood, owned solar, and an amazing location near San Tan Village are just some of the amenities! Come see this one today before it goes away!

View Property

32408 N 211th Avenue Wittmann, AZ 85361

$875,000

3 Beds

2 Baths

2,290 SqFt

Status Active

MLS # 6779955

Property Type Single Family Residence

Price Type --

LOCATION, LOCATION, LOCATION, 2 ACRES WITH A 1ST CLASS 4 STALL HORSE SHED ROW WITH ELECTRIC, AUTOMATIC WATERS, FANS & A SAND TURN OUT PEN, COVERED TACK ROOM & HAY SHED WITH CONCRETE SLAB & TIE RACKS, GRAVELED FRONT & BACK YARD, 1 ACRE COMPLETELY BARE SO YOU CAN HAVE A FULL SIZE ARENA OR LARGE SHOP, MORE PARKING, ETC FOR ALL YOUR NEEDS, PARCEL 503-40-073A IS INCLUDED IN SALE, 1 ACRE FULLY FENCED IN CINDER BLOCK THE OTHER 1 ACRE 5 RAIL PIPE FENCE, CONCRETE WALKWAY FROM HOUSE TO HORSE PENS, HOME UPGRADES INCLUDE-NEW APPLIANCES, NEW EXTERIOR PAINT, STONE INTERIOR THROUGH OUT HOME, WOOD PLANK CEILING IN MASTER BEDROOM, PAINTED CABINETS, 2 CUSTOM RV GATES, RAIN BIRD DRIP SYSTEM, 15 MINUTES TO SURPRISE, 30 MINUTES TO WICKENBURG, THIS PROPERTY IS A MUST SEE

View Property

860 E 7th Street Mesa, AZ 85203

$875,000

6 Beds

3 Baths

3,736 SqFt

Status Active

MLS # 6780308

Property Type Single Family Residence

Price Type --

Welcome to your dream family home, set on a spacious lot with mature and citrus trees. This stunning residence features 4 bedrooms and 2 bathrooms on the main floor, plus 2 additional bedrooms and a bathroom in the basement—ideal for in-law quarters or a playroom. The beautifully remodeled kitchen includes a large island with a breakfast bar, quartz countertops, and ample cabinetry. Recent upgrades feature a new water heater and water softener (2024) and new A/C units (2023). Step outside to your private oasis with a refreshing pool, built-in BBQ, and a slide and swing set for the kids. With new tile flooring on the main level and remodeled bathrooms (2022), this home is perfect for creating lasting memories. Don't miss this incredible opportunity to make this beautiful home your own!

View Property

20750 N 87th Street Unit 1146 Scottsdale, AZ 85255

$875,000

3 Beds

2 Baths

1,715 SqFt

Status Active

MLS # 6781289

Property Type Townhouse

Price Type --

Experience luxurious living in this gorgeous townhome in the gated Community of Encore at Grayhawk Condominium! Sits on a quiet cul-de-sac, this beauty offers 3 beds, 2 baths, & a 2-car garage. Home exudes elegance with a circular foyer, fire sprinklers, plantation shutters, modern light fixtures, tall ceilings, a neutral palette, & wood-look tile flooring t/out. You'll LOVE the formal dining room and inviting living room w/fireplace! The fully equipped kitchen boasts quartz counters, recessed & pendant lighting, tile backsplash, a pantry, ample cabinets w/crown molding, and a 2-tier peninsula w/breakfast bar. The owner's suite has patio access and an ensuite with dual sinks, separate tub/shower, & a walk-in closet. Relax while enjoying BBQ under the cozy back-covered patio! Welcome home!

View Property

8225 E Chaparral Road Scottsdale, AZ 85250

$875,000

4 Beds

3 Baths

2,054 SqFt

Status Active Under Contract

MLS # 6781664

Property Type Single Family Residence

Price Type --

This FULLY-FURNISHED OLD TOWN SCOTTSDALE STR/AIRBNB is an established INCOME-PRODUCING VACATION RENTAL that generates nearly $100K in annual gross rents. One of the most loved homes on Airbnb, this guest favorite boasts 78 nearly perfect 5 star reviews. It includes $129K in recent upgrades, sparkling pool and hot tub. Guests rave about the charming decor, amenities and outstanding location. INVESTORS: hit the ground running with this truly turnkey investment property and begin generating revenue as soon as you close, in time for the end of the tax year! *ASK YOUR AGENT FOR THE HISTORIC BOOKINGS & EXPENSES*.

View Property

1932 E Brentrup Drive Tempe, AZ 85283

$875,000

5 Beds

3 Baths

3,207 SqFt

Status Active

MLS # 6782120

Property Type Single Family Residence

Price Type --

Discover this stunning tri-level home located in the highly sought-after community of Oasis at Anozira in Tempe. This friendly and quiet neighborhood features its own private 6.5-acre catch-and-release lake surrounded by a lush 0.88-acre greenbelt, offering a serene retreat right at your doorstep. This spacious home boasts a three-car garage with built-in cabinets for ample storage. The layout includes a formal dining area, a cozy family room, and a separate living room—perfect for entertaining or family gatherings. The updated kitchen is a chef's delight, featuring beautiful shaker cabinets and elegant granite countertops. With two bedrooms conveniently located downstairs, perfect for teens or in-laws. The primary en-suite offers a walk-in closet, and a large bathroom. French doors lead out to your own backyard oasis. Enjoy a refreshing pool, a covered patio for outdoor dining, and a grassy area complemented by fruit treesperfect for relaxation and entertaining. Located within the esteemed Kyrene school district, this home is also conveniently situated near schools, freeways, shopping, and dining. Don't miss the opportunity to make this beautiful property your new home!

View Property

12473 W Montgomery Road Peoria, AZ 85383

$875,000

5 Beds

3.5 Baths

3,841 SqFt

Status Active

MLS # 6782293

Property Type Single Family Residence

Price Type --

Welcome to your dream home in the highly sought-after Vistancia community! This spacious 3,841-square-foot, two-story residence offers five bedrooms, three and one-half bathrooms and an abundance of modern amenities, ideal for both relaxation and entertaining. Located in the vibrant Vistancia community, this home offers access to top-rated schools, parks, walking trails and resort-style amenities, including pools and recreational facilities. Don't miss the opportunity to make this stunning home yours—schedule a private showing today!

View Property

3056 E Appaloosa Road Gilbert, AZ 85296

$875,000

5 Beds

5 Baths

3,155 SqFt

Status Active

MLS # 6783093

Property Type Single Family Residence

Price Type --

Owned Solar (no loan or lease) and Tesla PowerWall! and EV car charger. Two-story residence in Morrison Ranch exuding comfort and elegance! Grassy front yard, stone-accented façade, and welcoming porch. Interior has plantation shutters, tile and carpet flooring, neutral paint throughout, recessed lighting, and thick baseboards. Open den, cozy family room, and oversized loft are areas providing endless entertainment possibilities! The eat-in kitchen has stainless steel appliances, a center island w/breakfast bar, granite counters, and a walk-in pantry. Large master boasts a lavish bathroom with a glass enclosure rain shower and a dual sink vanity. All bedrooms have walk-in closets for convenience. Downstairs bedroom can be easily used as an office. Permanent holiday lighting installed. Washer, dryer, utility sink, and cabinetry included in the laundry room! Private and serene backyard offers a covered patio and green grass for relaxing evenings. The 3-car tandem garage allows you to bring all your vehicles. Don't miss out on this excellent opportunity!

View Property

15048 E Sierra Madre Drive Fountain Hills, AZ 85268

New

$875,000

3 Beds

2 Baths

2,313 SqFt

Status Active

MLS # 6784226

Property Type Single Family Residence

Price Type --

Sitting on an almost ½ acre elevated lot backing to open desert, this charming home in North Heights has just been updated & upgraded! Just completed: $20k new roof w/underlayment, $6k pool heater, complete interior paint, 2 new skylights, new tile & fans in 2 bedrooms, plumbing fixture & hardware! Enter into the large & open great room with wood burning fireplace, skylights and view out to the back yard & open desert beyond. Kitchen offers extensive cabinetry and counter space, granite counters, wine fridge, double oven, large island with seating, and breakfast bar area. Spacious master suite has patio access, oversized walk-in closet, separate tub & shower. The serene backyard is north-facing for maximum shade, open desert on all sizes and a large heated pebble-tec pool. The spacious 3 car garage has cabinetry on both sides. Owner is open to providing interest-only financing at below market rates. Easy to show, this one won't last!!

View Property

7131 E Rancho Vista Drive Unit 3001 Scottsdale, AZ 85251

New

$875,000

2 Beds

2 Baths

1,327 SqFt

Status Active

MLS # 6784495

Property Type Apartment

Price Type --

Gorgeous corner unit at Optima Camelview with beautiful natural light, and ready for its next owner. Located in the back of the complex and away from main roads, the unit has been freshly prepared for market and would make a great unit for investors, second home buyers, or someone who wants to make downtown Scottsdale their home and appreciate fine living. The Optima Camelview complex has fantastic amenities and services available to its residents including a concierge office, onsite HOA management, huge gym, multiple pools, and is seconds from Scottsdale Fashion Square and all the shopping and dining the area offers. Rents are strong in this complex if looking to buy as an investment! A truly turnkey unit or one that you could make your own.

View Property

3742 S Coach House Drive Gilbert, AZ 85297

$874,999

7 Beds

3 Baths

3,450 SqFt

Status Active

MLS # 6727128

Property Type Single Family Residence

Price Type --

*******RARE******BASEMENT HOME IN Power Ranch*********7 bedrooms- Huge 3450 Sq Ft. Over $170K in new upgrades, including custom plank tile flooring, both upstairs baths completely remodeled, complete new Kitchen with all new SS GE Profile Appliances, BRAND NEW, not painted white Cabinets with pull out shelves, Quartz Counters, Double ovens, new SS Sink and Faucet with disposal. They have even added in a Built in Nugget Ice maker. Huge Rv Gate with ample concrete parking behind and ln front of the gate. Private 8' deep heated Pebble Tec Pool with a waterfall slide, and hot tub. New Water Heater, and 2 new Ac units in 2020. SELLER WILL PAY OFF SOLAR LOAN WITH THE RIGHT OFFER..... In 2018 seller added a whole home Solar system, it has a loan balance that will need to be taken over or a new loan taken out from the buyer. Payments are $354 for the life of the loan. Balance owed is around $37K. All the TVs and mounts do not convey with the sale.

View Property