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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5956 S Loma Verde Trail Hereford, AZ 85615

$869,900

4 Beds

3 Baths

3,283 SqFt

Status Active Under Contract

MLS # 6776192

Property Type Single Family Residence

Price Type --

THIS LUXURY HOME BUILT BY THE ONE AND ONLY SUN CANYON HOMES in Ranchos San Pedro subdivision is SO EXQUISITE!!! It's a MUST see with breathtaking views from every window, too many upgrades to list (please ask me or your Realtor for a list of all the PREMIUM features) This 4 BDRM/3 BATH includes a ''Mother-in-Law suite'', office, masterpiece tile flooring throughout, 10 & 12 ft ceilings, granite, a stunning master shower, 2 fireplaces, oversized laundry room with custom cabinets, XL garage with epoxy, 2x6 construction, R38 insulation, corner lot in a Cul-de-sac, fully landscaped, magnificent full length covered patio facing the Huachuca Mountains - a must see! Home is wired for surround sound and so so so much more! This home is EXTRA, EXTRA, EXTRA in so many ways!

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33624 N 7th Street Phoenix, AZ 85085

$869,500

3 Beds

2.5 Baths

2,128 SqFt

Status Active

MLS # 6755227

Property Type Single Family Residence

Price Type --

Welcome to your hidden gem in the Highlands of Desert Hills! This private retreat is perfectly nestled on a secluded lane just off 7th Street, offering breathtaking mountain views and endless possibilities. Step inside this meticulously maintained home and discover a warm, inviting space with beautifully updated flooring, a modern kitchen, and remodeled bathrooms. The expansive great room flows seamlessly into a bright and open kitchen, perfect for family gatherings and entertaining guests. Upstairs, you'll find three generously sized bedrooms, each boasting stunning mountain views from every window. The master suite offers a peaceful escape with its updated bathroom and serene atmosphere. Outside, the spacious backyard is your personal oasis, complete with a pergola-covered patio for relaxing afternoons, a manicured yard, and a guest RV spot with full hookupsperfect for visitors! Plus, a large covered carport provides plenty of storage for your RV or boat. This unique property sits on over 2 acres, with the option to subdivide for future building opportunities. Whether you're dreaming of expanding or simply enjoying your slice of paradise, this home offers endless potential. Don't miss out on this rare find.

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2230 Aspen Run -- Pinetop-lakeside, AZ 85935

$869,000

4 Beds

3 Baths

2,260 SqFt

Status Active

MLS # 6730919

Property Type Single Family Residence

Price Type --

Welcome to Top of The Woods! Set back in the more secluded part of the neighborhood and just a leisurely stroll to Woodland Lake Recreation area. Demonstrating unmistakable pride in craftsmanship as verified in the attention to detail. Come discover this spacious 4-bed, 3-bath new custom-built home in Pinetop. Incredible accent features inside & out, including hand-laid stone, solid slab hearth, custom tile work, T&G accent wall, granite counter tops, solid wood doors & trim...and so much more. Step outside and enjoy the smell of the tall pines that surround you from your charming and private covered porch or rear deck. Full stone fireplace stands ready to warm those chilly mountain evenings. This Mountain Cabin is the gateway to an all-season lifestyle that outdoor enthusiasts dream of.

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312 E Windsor Avenue Unit 14 Phoenix, AZ 85004

$869,000

2 Beds

2.5 Baths

2,050 SqFt

Status Active

MLS # 6652436

Property Type Townhouse

Price Type --

Our eyes are made to see forms in light: light and shade reveal these forms. Rising like the sun over Midtown Phoenix is Soleil. Inspired by Original Modernism; built for connoisseurs of live, work, play. There's a renaissance going on in PHX and you can be close to it all. Uber or light rail yourself to 3 rd Street Promenade and into secluded hidey holes! And when you need to unwind? You're 15 minutes away from exciting, desert hiking trails. It's here you'll witness sun-setting colors pour and splash themselves all over the Sonoran Desert.

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38500 N School House Road Unit 46 Cave Creek, AZ 85331

$869,000

2 Beds

2.5 Baths

2,109 SqFt

Status Active

MLS # 6703808

Property Type Single Family Residence

Price Type --

Home for Sale with New Appliances, Beds, Linens, Furnishings, Landscaped Front and Back. 5 minutes Walking distance to the special and highly popular Town of Cave Creek. Walking / Hiking path begins on School House Rd and continues up the mountain. Horse Riding and Boarding Facility on School House Road. Perfect Amenities on the Property. Excellent for Full Time Living, Rental and Winter Vacation. Pet Park, Pickle Ball Court, Heated Pool and Spa, Small Fitness Center. Responsible Neighbors. Mountain Views that are some of the best in the North Valley. You will love this Community. Seller will carry!

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22834 E Mccowan Court Queen Creek, AZ 85142

$869,000

3 Beds

2 Baths

1,906 SqFt

Status Active

MLS # 6705516

Property Type Single Family Residence

Price Type --

Discover the epitome of luxury living at 22834 E McCowan Ct, Queen Creek, AZ 85142, a stunningly remodeled home that harmoniously blends modern elegance with comfort and style. Very private dead-end street, country living less than a half mile from Queen Creek High! This exquisite property, nestled in the heart of Queen Creek, has undergone a comprehensive renovation, both inside and out, to offer a living experience that is truly unparalleled. Navy blue cabinets with thick white/speckled granite form India throughout. Frameless glass showers. GE Cafe appliances and range hood, gas range. Amazing tile work. 114 foot around private 6 foot deep pool with 110sqft grotto cave and slide! Home was completely remodeled in late 2020 no expenses spared. Horse Property! As you step inside, you are immediately greeted by the breathtaking beauty of the recently updated interior. The home features new cabinets and counters that exude a sleek and modern vibe. The kitchen is a chef's dream, boasting thick white and grey granite countertops that provide ample space for meal preparation and entertaining. The GE Cafe appliances, including a gas range, add a touch of sophistication and convenience

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3808 E Powell Way Gilbert, AZ 85298

$869,000

3 Beds

2 Baths

2,361 SqFt

Status Active

MLS # 6711636

Property Type Single Family Residence

Price Type --

***DESIRED SEVILLE GOLF COMMUNITY***ALMOST A 3/4 ACRE N/S LOT***METICULOUSLY KEPT***LOADED WITH UPGRADES***DECORATOR TOUCHES***OPEN FLOOR PLAN*2 LIVING AREAS+DEN*UPGRADED CABINETS*LARGE KITCHEN ISLAND*GRANITE COUNTERTOPS*NEW FLOORING*NEW ROOF*NEW WINDOWS&DOORS*AUTOMATIC/REMOTE WINDOW COVERINGS*SECURITY SYSTEM&CAMERAS*NEW FIXTURES*FRESH PAINT*OUTDOOR LIVING AT IT'S BEST!!!*COVERED PATIO*EXTENDED PAVERS*SPARKLING POOL*NEWER VARIABLE SPEED PUMP*ABOVE GROUND SPA*GAZEBO*NEW IRRIGATION&LANDSCAPE LIGHTING*LARGE GRASS AREA*GARDEN*MATURE LANDSCAPING*CITRUS TREES*EXTRA STORAGE*RV GATE*3 CAR GARAGE*EXPOY FLOORS*NEW WATER HEATER*WATER SOFTENER*OPTIONAL MEMBERSHIP TO COMMUNITY WATER PARK,RESTAURANT,GYM,TENNIS,PICKLEBALL&GOLF*THE LIST GOES ON,MUST SEE ALL THE HOME HAS TO OFFER*

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4689 Sharp Shooter Way Prescott, AZ 86301

$869,000

3 Beds

2 Baths

2,683 SqFt

Status Active

MLS # 6731833

Property Type Single Family Residence

Price Type --

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4032 S Pleasant Place Chandler, AZ 85248

$869,000

4 Beds

2.5 Baths

2,708 SqFt

Status Active

MLS # 6753592

Property Type Single Family Residence

Price Type --

Welcome to this beautifully maintained home perfectly situated in the master planned community Fulton Ranch. Offering 4 bedrooms + den + bonus room, brand new water heater, surround sound in family room and back yard patio. Just minutes away from local shops, restaurants, parks and top-rated schools. Whether you are starting a family or looking for a peaceful retreat, this home offers something for everyone. Don't miss the opportunity to live in a fantastic community with great neighbors and all amenities you need nearby!

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3628 E Weldon Avenue Phoenix, AZ 85018

$869,000

3 Beds

2 Baths

1,852 SqFt

Status Active

MLS # 6753668

Property Type Single Family Residence

Price Type --

Immaculate and move in ready 3 bedroom, 2 bath single story home located in the highly desired subdivision of Suncrest Estates. This beautiful home was meticulously landscaped and completely remodeled in 2024. This home features a new roof, new windows, open concept updated kitchen with stainless steel appliances, new cabinetry, quartz countertops, completely remodeled bathrooms, new paint, new wood look tile floors, new plumbing and lighting fixtures. Located on a quiet cul-de-sac lot in one of the most highly coveted areas in Phx! Easily the best overall value in Arcadia. Close by great restaurants, shopping, trails & Camelback Mountain.

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5361 W Arrowhead Drive Prescott, AZ 86305

$869,000

4 Beds

3 Baths

3,454 SqFt

Status Active

MLS # 6753709

Property Type Single Family Residence

Price Type --

Discover the tranquility of mountain living in this beautiful 4-bedroom, 3-bath home, set on 1.6 acres of stunning Ponderosa Pine covered forest in the lovely Highland Pines community. Boasting 3,454 square feet, this home features a finished walk-out basement, creating a versatile space for family, guests, or a private retreat. Step inside to find vaulted ceilings, an open floor plan, and expansive windows in every room, allowing you to enjoy panoramic forest views and abundant natural light. Gather around the cozy wood-burning fireplace, perfect for chilly mountain evenings. With ample space inside and out, this home is perfect for entertaining or simply relaxing in the beauty of nature. If you're searching for a peaceful mountain escape, this Highland Pines property is the one for you.

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1805 W Piedmont Road Phoenix, AZ 85041

$869,000

4 Beds

3 Baths

2,435 SqFt

Status Active

MLS # 6766989

Property Type Single Family Residence

Price Type --

Your private paradise on nearly an acre with NO HOA, moutain views and city services is here! This upgraded open concept/great room, 4 bed/3bath home is layed out for privacy. The 10' ceilings create an airy, welcoming feel. Solid-core, 8' shaker-style doors throughout. The expansive kitchen is a chef's delight with double ovens, cooktop and built-in microwave. Beautiful granite covers the expansive countertops and large island with breakfast bar. Improve your golf game on your 6-hole putting green and chipping pad. Backyard landscaped: expanded patio with pavers, walking path with easy access to putting green, vegitation. New water heater 2024. Step out your door and hit the South Mountain trails on foot, bike or horseback! Dont miss this gem! Easy access to the 202, I-17, Downtown and Sky Harbor airport.

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