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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21389 W Hillcrest Boulevard Buckeye, AZ 85396

$874,990

4 Beds

3.5 Baths

2,780 SqFt

Status Active

MLS # 6739139

Property Type Single Family Residence

Price Type --

Gorgeous curb appeal, 4 bed, 3.5 bath, 3 car garage with enclosed study; incredible quartz countertops in kitchen with upgraded GE stainless appliances, tiled backsplash, huge island and tons of storage. Open plan with 90 degree sliding glass door to outdoor living area. Upgraded plank tile flooring, upgraded carpet/tile and countertops in owner's retreat bath. Sunroom with vaulted ceiling; Perfect home for entertaining. 2X6 CONSTRUCTION; EXTENSIVE NEW HOME WARRANTY; see you soon!

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17357 E La Pasada Drive Fountain Hills, AZ 85268

$874,900

3 Beds

2.5 Baths

2,151 SqFt

Status Active

MLS # 6663155

Property Type Single Family Residence

Price Type --

Views Views Views!!! This rare single level view top home with separate guest quarters offers the most stunning mountain views and design features anyone could desire. The home has been completely updated inside and out. Recent appraisal of $896,000 show this homes true value. Heated pool and spa allow for a resort style feel, and year round enjoyment. Home was professionally designed and has that new home look and feel.The list of upgrades is truly too much to list. This is a perfect opportunity to own a single level view top updated home that has the look and feel it was just built. No HOA. No NPOA. Great for short term rental opportunities.

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8022 E Via Del Valle -- Scottsdale, AZ 85258

$874,900

2 Beds

2 Baths

2,000 SqFt

Status Active

MLS # 6687409

Property Type Townhouse

Price Type --

Fantastic 2 Bedroom, 2 Bath, 2000 sq ft townhome in Santa Fe subdivision in McCormick Ranch. Large open great room (with no step downs), wet bar and fireplace. Remodeled master bath with shower and jacuzzi tub. Private back yard, covered patio and 2 car garage. Located close to the club house with heated community pool and spa.

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17418 E La Pasada Drive Fountain Hills, AZ 85268

$874,900

3 Beds

2 Baths

2,170 SqFt

Status Active

MLS # 6694760

Property Type Single Family Residence

Price Type --

Newly updated one of a kind, single level, modern desert style home on a level lot. Oasis backyard offers majestic mountain views. Magazine quality features can be seen inside and out. Paid for solar, fresh foam roof and dual pane windows make this an eco friendly, cost effective opportunity. Speaking of opportunity there is No HOA and No NPOA. Great for short term rental opportunities. The list of upgrades is way too much to list. Come see for yourself. A recent certified appraisal of $898,000 is available on site.

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310 W Navajo Road Flagstaff, AZ 86001

$874,900

5 Beds

3 Baths

1,932 SqFt

Status Active

MLS # 6727174

Property Type Single Family Residence

Price Type --

Here it is! The Coconino Estates home with an ADU you've been waiting for! Main house house has a split floor plan with the converted garage turned into a luxurious Primary suite. Wood accents throughout the home provide warmth and coziness. The landscaped front and back yard are perfect for entertaining family and friends. Just a short walk to the grocery store, Mama Burger, Frances Short Pond, Thorpe Park, and the tree park! Just a short drive to Snow Bowl! The ADU is 1 bed 1 bath with a sizable living area and full kitchen! New roof and furnace in 2020. 3 custom doors in 2023 (3 year warranty). New Carpet 2023. Don't miss your chance to see this incredible income producing property!

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694 S Mountain View Road Apache Junction, AZ 85119

$874,900

4 Beds

2 Baths

1,945 SqFt

Status Active

MLS # 6751574

Property Type Single Family Residence

Price Type --

This home is the complete package-4 bedrooms, 2 bathrooms, 8+ car garage, a pool, horse property on an acre, with amazing views of the Superstition Mountains...WOW!!! Pride of ownership shows throughout this property. It has been well taken care of. Lots of parking for all the toys between the attached 2+ car garage & the detached 6 car garage out back. RV pad with 30 amp service. This fully fenced, flat usable lot still has space out back for more parking. Plenty of room to add a barn & corral if you want. The pool is so inviting & is perfect for cooling off in. While you rest & watch the gorgeous sunsets on the long covered patio you can listen to the relaxing sound of the pool waterfall. The front porch is perfect for enjoying the majestic Mountain Views.

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1454 N Orlando -- Mesa, AZ 85205

$874,900

5 Beds

3 Baths

3,251 SqFt

Status Active Under Contract

MLS # 6753051

Property Type Single Family Residence

Price Type --

Gorgeous updated home situated on a sprawling irrigated lot. New exterior paint and hvac unit. Interior has beautiful new flooring and baseboards throughout. Kitchen features new shaker cabinetry, quartz countertops, pantry and stainless steel appliances. Huge island area is great for entertaining. Spacious living spaces with tons of possiblilities to fit personal lifestyle. Owner suite is your own sanctuary with a private bath you won't want to leave. Stunning finishes, huge walk in shower and seperate soaking tub. Great sized secondary bedrooms and plenty of storage throughout the home. Backyard has sparkling pool and spa, patio areas and plenty of space for outdoor living. This home is a rare find and hits all of those hard to find amenities!

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315 E Balao Drive Phoenix, AZ 85085

$874,900

3 Beds

2.5 Baths

2,375 SqFt

Status Active

MLS # 6763358

Property Type Single Family Residence

Price Type --

Breathtaking VIEWS of Sonoran Mountain Preserve (OVER $222K in UPGRADES - PAID SOLAR! Average $27.80/Mo for Electric!)! Single Level, 3-car garage (w/additional 4ft extension), 3 beds PLUS Den, 2.5 Baths, SPA (hot or cold), Raised View Deck, & RV gate in Gated Community. Impressive w/10ft ceilings, 8ft doors, Plantation Shutters, HUGE open floor plan, CUSTOM entertainment ctr w/fireplace, surround sound, & multi sliding glass drs to extended back patio w/travertine tile. GOURMET Kitchen equipped w/abundant espresso cabinetry, granite counters, walk-in pantry, LARGE island w/seating, & GE Café SS appliances. Owner's retreat w/dual sinks, make-up vanity, SUPER sized tiled shower, & walk-in closet. Tranquil backyard, boasting a patio misting system, grassy area, built-in BBQ & smoker.

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41411 N Anthem Ridge Drive Anthem, AZ 85086

$874,800

3 Beds

3.5 Baths

2,991 SqFt

Status Active

MLS # 6763778

Property Type Single Family Residence

Price Type --

Are you ready to experience elevated living at Anthem Country Club? Discover this stunning home, perfectly positioned on a premium corner lot in the prestigious Anthem Country Club. Step inside to be welcomed by a beautiful and inviting open-concept floor plan featuring 3 bedrooms plus a den, a spacious great room, a formal dining area, and a versatile front living/flex room. The kitchen, designed to delight even the most discerning chef, boasts an abundance of upgraded cabinetry with crown molding, under-cabinet lighting, sleek granite countertops and backsplash, stainless steel appliances, an island with a breakfast bar, and elegant stone accents. The casual dining nook, framed by a bay window, adds a charming touch to your daily meals. The great room exudes warmth and style with a custom feature wall and a stunning stacked-stone gas fireplace, complemented by Stone Creek built-in cabinetry. Perfect for entertaining, the tranquil backyard is equipped with a custom-built grill, pizza oven, and a spacious paver patio. A built-in BBQ island with bar seating, a calming fountain, easy-care artificial turf, and breathtaking mountain views make this backyard an entertainer's dream. Retreat to the serene primary bedroom, which features double-door entry, sliding doors leading to the backyard, and an en-suite bath complete with dual vanities, a tiled shower, a soaking tub, a large walk-in closet with built-ins, and a linen closet. A secondary bedroom with its own en-suite bath offers privacy and convenience for guests. Additional features throughout the home include plantation shutters, two-tone paint, designer light fixtures, and a spacious 3-car garage. Living within the gated Anthem Country Club provides exclusive access to members-only amenities such as resort and lap-style pools, tennis courts, a fitness center, and a world-class golf course. Don't miss your chance to view this exceptional property today!

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213 S Mount Vernon Avenue Prescott, AZ 86303

$874,500

3 Beds

3 Baths

2,049 SqFt

Status Active

MLS # 6705845

Property Type Single Family Residence

Price Type --

Historic Craftsman Bungalow located on the most highly sought after street in Prescott. This turn-key property is currently operated as a successful VRBO & may come fully furnished. Taxes only $588 per year! Main home offers 3 bedrooms, 2 bath, open concept family room, dining room, updated kitchen w/ eat-in island, media/game room & charming front porch to enjoy taking in Prescott's small-town charm. Property also presents lower apartment, offering additional income unit. Two separate garages offering one above at house level & two car garage below at alley access w/ adjacent RV space. Terraced back yard is fully fenced w/ plenty of room to expand back patio space to make this an even more enchanting space. Don't miss your opportunity to own a piece of history in the heart Prescott!

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1808 W Horsetail Trail Phoenix, AZ 85085

$874,500

5 Beds

2.5 Baths

2,968 SqFt

Status Active

MLS # 6783279

Property Type Single Family Residence

Price Type --

Welcome to this stunning home offering curb appeal, a 3-car garage, and breathtaking mountain views. Enjoy North-South facing for optimal sunlight, 42 owned solar panels for energy efficiency and a resort style backyard! Inside, you'll find numerous upgrades including Lutron automated shades in the living areas and shutters in the bedrooms. The thoughtfully designed floorplan includes 5 bedrooms, a den, and a spacious great room with surround sound. The gourmet kitchen boasts stainless steel appliances, a waterfall island, quartz countertops, and a walk-in pantry. The primary suite offers a luxurious ensuite with a soaking tub, separate shower, dual sinks, dual walk-in closets, and backyard access. Step outside to a cozy covered patio, surrounded by beautiful travertine pavers that extend out to a sunken firepit and a pebble tech pool complete with a serene waterfall, perfect for entertaining or relaxing in your desert oasis. Additional features include R/O, Water Softener, laundry room with cabinets and a sink, tankless water heater, a mini-split HVAC in single garage, and 2 year old AC units! Do not miss out on this beautiful home!Welcome to Sonoran Hills, a gated community offering exceptional amenities including a refreshing community pool, sports courts, and a dog park, perfect for active lifestyles. Conveniently located near major freeways, residents enjoy easy access to dining, shopping, and entertainment. With its blend of resort-style living and ideal location, Sonoran Hills provides the perfect balance of comfort and convenience.

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805 W Little Ranch Road Paulden, AZ 86334

$874,478

4 Beds

3 Baths

3,207 SqFt

Status Active

MLS # 6613512

Property Type Single Family Residence

Price Type --

Discover your Self-Sustaining Oasis in Paulden, AZ. Nestled ~30 minutes from Prescott, this Paulden ranch is a prepper's dream. Sitting on 5 fenced acres, it boasts a high-producing well with windmill-powered 10,000-gal storage tank plus an extra well, also high capacity. Security is ensured with an automatic gate, mature trees and a secluded location. The main house offers 4 bedrooms, 3 baths, a beautiful kitchen, huge living room, true soundproofed media room, laundry room, dining room, pantry, and more. Compound includes 1248 sqf workshop/garage (w/office+ bathroom), 480 sqf bunkhouse, 768 sqf garage, a bunker/root cellar/wine cellar, another 2-car garage/storage container, horse facilities, gardens, ponds, etc. This gem is a haven for those seeking self-sufficiency in a crazy world.

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