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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2810 S 201st Drive Buckeye, AZ 85326

$864,900

3 Beds

2 Baths

2,706 SqFt

Status Active

MLS # 6777286

Property Type Single Family Residence

Price Type --

Gorgeous Southwestern Home on an Irrigated Acre, Located on a quiet, paved street. This Park like property has 7 Mature Trees offering abundant shade. This Pristine Property has never housed Farm Animals. Enjoy the benefits of owning your own Private Well. This Spacious Great Room Floorplan has Vaulted ceilings, Authentic Log Beams, an Entertainment Niche and Cozy BeeHive Fireplace. The Kitchen Features a Cooks' Nook, Counter Height Bar, Spacious Counter Space and Bountiful Cabinet Storage with a Bay Window area to allow for a Generous Size Table. 3 Oversized Bedrooms all with Large Walk-In Closets round out this homes Perfect Blend of Southwest Living. Enjoy your Morning Coffee, or watch Magical Sunsets Poolside listening to the Tranquil Water Fall. This home is your Perfect Getaway! Owning your Own Perfect Getaway.

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6603 W Via Dona Road Phoenix, AZ 85083

$864,800

3 Beds

2.5 Baths

2,398 SqFt

Status Active

MLS # 6737497

Property Type Single Family Residence

Price Type --

Gorgeous remodeled home with over $250K in improvements! Offering significant solar savings each month. Nestled in the sought-after community of Eagle Preserve at Boulder Mountain. Packed with quality finishes like new wood-look tile flooring throughout with new carpeting in the bedrooms, new baseboards, & recessed energy efficient LED lighting. Chef's kitchen with quartz counters, Wolf/Sub-Zero/Cove appliances, & RO System. Primary bedroom with an updated ensuite bath & walk-in closet. The backyard oasis complete with a sparkling pool with new equipment & fencing, turf, covered patio, & pavers is the ideal place to beat the heat. Also featured, 3-car split garage, new landscaping & irrigation system, New HVAC system, leased SOLAR, & an incredible North Phoenix location!

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2298 Aspen Run Pinetop-lakeside, AZ 85935

$864,000

4 Beds

3 Baths

2,260 SqFt

Status Active

MLS # 6730920

Property Type Single Family Residence

Price Type --

Escape to Mountain Luxury in Pinetop Indulge in the fine mountain living you've longed for with this breathtaking new construction cabin nestled in the heart of Pinetop's majestic White Mountains. This stunning retreat boasts four spacious bedrooms and three modern bathrooms, providing ample space for family and guests to unwind in comfort. As you step inside, the grandeur of deep vaulted ceilings with exposed truss beams greets you, framing a spectacular full custom tile fireplace that anchors the living space. The warmth of the huge barn wood accent wall is complemented by the beauty of waterproof engineered flooring throughout, crafting a comfortable, rustic and modern atmosphere. Gourmet experiences await in a state-of-the-art kitchen featuring (see supplement)

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20371 E Calle De Flores -- Queen Creek, AZ 85142

$863,900

3 Beds

2.5 Baths

3,024 SqFt

Status Active

MLS # 6709897

Property Type Single Family Residence

Price Type --

**REDUCED PRICE** Motivated Seller; Move-In Ready! Meticulous Maracay Home located in the exclusive Montelena Community. This elegant home offers a host of UPGRADED desirable features for comfortable living. Grab a book & relax on the large front porch patio that offers no direct sun. Open floorplan featuring 10' ceilings & lots of natural light and beautiful elegant design; GOURMET KITCHEN is the heart of the home featuring Tuscan lights, an oversized island w/ lots of granite counterspace, 5 burner gas cook top, tall cabinets, two wall ovens, butcher pantry, breakfast area; Huge Living room displays more natural light, a 3D wall with accent lighting & gas fireplace; surround sound; 12' SLIDING GLASS DOOR opens to a spectacular view of the pool/waterfall; Owner's suite is a serene retreat w/ plenty of sitting room; Oversized soaking tub, separate tub/shower, double sinks, large walk-in closet featuring new floor-to-ceiling storage shelving by Closets by Design & direct access to laundry room through walk-in closet; Laundry room set up w/ hanging racks, folding table, & extra cabinets; Secondary bedrooms w/ walk-in closets; Versatile flex room suitable for an office, workout room, or study. Backyard is an entertainer's dream with a GAZEBO adorned with party lights, built-in gas BBQ, gas firepit, and a pool with built-in heating/cooling system, and a soothing water feature.

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14861 N Skokie Court Phoenix, AZ 85022

$863,000

4 Beds

2.5 Baths

2,300 SqFt

Status Active

MLS # 6770221

Property Type Single Family Residence

Price Type --

Beautiful home located in the heart of the premier community of Moon Valley. This 4-bedroom, 2.5-bathroom home sits on a large lot with a huge backyard with a large grassy area, large pool, covered patio and a large RV gate and area for your toys. This gorgeous home has been totally remodeled. The spacious living room/great room has high-end hard wood looking vinyl flooring. The kitchen features a large island, granite counter tops and stainless-steel appliances. All bathrooms have been remodeled. Other upgrades include pool resurfacing with Pebble Tec and a ''Baja'' deck, new water heater, new windows and doors, new window covering including an electric closing shade in the great room, new front door, 50-gallon water heater AC/furnace and much more! Winter grass will be green soon

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35108 N 139th Way Scottsdale, AZ 85262

$862,000

4 Beds

3 Baths

3,582 SqFt

Status Active

MLS # 6720222

Property Type Single Family Residence

Price Type --

Experience the best of Scottsdale in this custom home with breathtaking views. The chef's kitchen with breakfast nook and walk-in pantry opens to a cozy yet spacious family room w/fireplace. There's a separate dining room too. The home offers 4 bedrooms plus an office, with the flexibility to transform spaces into additional office areas, a gym, a den, or extra bedrooms to suit your lifestyle. The split primary suite provides owner privacy and comfort. Wood and tile flooring in main living areas. Step outside to your own resort-style backyard, featuring a covered patio, built-in BBQ, Pebble-Tec pool, fire pit, turfed yard, and a rooftop deck. This property is ideal for horses, pets, and kids, with pipe rail fencing for added safety. Easy access to all Scottsdale amenities.

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1852 E Flintlock Way Chandler, AZ 85286

$862,000

5 Beds

3.5 Baths

4,106 SqFt

Status Active

MLS # 6780761

Property Type Single Family Residence

Price Type --

Gorgeous upgraded home on a huge premium lot with 5 BR+3.5 BA, Den, & a cozy loft, soaring ceilings as high as 22' with beautiful flooring throughout the house. This open floor plan offers both comfort and privacy. Kitchen is open and huge with 42'' Cherry cabinets, granite, pantry, breakfast area, a family size island with gas range. The Kitchen opens to a dine in area& a comfortable family room. The Covered patio with brand new epoxy flooring leads to the versatile backyard with a sparkling pool along with a huge yard for entertaining and playing. Dual Masters with one suite downstairs which is an ideal In-laws set up. Master suite upstairs is huge with an upgraded shower & a huge walk-in closet. House comes with 3 car garage with commercial style flooring with one garage offering... offering a raised ceiling. The prime location of this property will give you access to freeways, schools, dining, major medical and shopping areas.

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27603 N 73rd Drive Peoria, AZ 85383

$860,097

3 Beds

2.5 Baths

2,654 SqFt

Status Active

MLS # 6773071

Property Type Single Family Residence

Price Type --

This STUNNING NEW 2024 home on a premium lot w/mountain views is OVERFLOWING w/over $140k of DESIGNER upgrades! Professionally landscaped front yard w/faux grass and paver driveway! BEAUTIFUL GOURMET kitchen w/gas cooktop, quartz countertops, tiled backsplash, island w/breakfast bar + stainless appliance suite! Great room/dining room w/lots of windows! SPLIT primary bedroom suite w/LUXURIOUS ensuite bath w/HUGE walk-in shower! Separate office/flex space! Bring your own backyard design to this PRIVATE backyard w/large covered porch and create the oasis of your dreams! This property has too many upgrades to list here! Come see for yourself. Welcome HOME!

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22941 W Blue Sky Drive Wittmann, AZ 85361

$860,000

3 Beds

2 Baths

2,140 SqFt

Status Active

MLS # 6689563

Property Type Single Family Residence

Price Type --

Voted Best home on Tour! This 4-bedroom, 2-bathroom, 2-car garage property boasts a custom horse setup with 4 stalls featuring runouts, 3 turnouts, a circular concrete drive, and 3 RV gates with a 30 amp hookup. Ropers, there is NO room for a regulation arena on this property. The heated pool with a waterfall adds a touch of luxury. With no HOA restrictions, this property is ideal for horse enthusiasts. The seller has invested over $500K in upgrades, making it a remarkable find. The home sits on nearly 2 acres and includes 4 20X20 stalls with mats and waterers, a locking tack shed with a washer, its own water heater, a propane tank, and enclosed hay storage that holds a squeeze. Additionally, there is a shaded dog house with a run and auto water. The property features a covered 30X38 shade for your LQ or RV, 3 sprinklered turnouts with shade and water, each approximately 150X20, and a 120X110 lighted, sprinklered arena. For more details and before pictures, refer to MLS # 5763130 and the doc tab. There are 6 before photos included with the photos. At the end of the day when you are ready to kick back with a cold one, hang out with your friends by your heated pool and barbeque under the covered patio. And, your new home also features a newer A/C, newer roof, on-demand water heater, and split floorplan. There is a water softener, reverse osmosis, and a newer dishwasher, refrigerator, and washer and dryer. The pool equipment is also newer. The warranties include roof and A/C. So, the major upgrades are complete. The landscaping is on automatic waters and was all new about 5 years ago so it's mature and lush. There is also a variety of citrus trees. So, come and make this your own.

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2061 S High Sierra Court Show Low, AZ 85901

$860,000

3 Beds

2 Baths

2,071 SqFt

Status Active

MLS # 6723870

Property Type Single Family Residence

Price Type --

Your own private custom home awaits you in the gated community of Snow Creek, nestled in the cool Wht Mountains of AZ. this stunning 3 bedroom, 2 bath home spans 2,071 sq. ft. and is situated on a double lot totaling .86 of an acre. the home features exquisite custom rock work throughout both it's interior and exterior adding a unique charm. The spacious great room, complete with a cozy gas fireplace provides a welcoming space for gatherings. The large kitchen equipped with ample cabinets and counter space ensures that entertaining is a breeze. the homes split floor plan offers convenience and privacy with a Jack and Jill bath servicing two bedrooms. The large master bedroom is truly designed for ultimate relaxation. Oversized 2 car garage and gorgeous mountain view

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4561 E Lariat Lane Phoenix, AZ 85050

$860,000

5 Beds

3 Baths

3,082 SqFt

Status Active

MLS # 6757617

Property Type Single Family Residence

Price Type --

Don't miss this TW Lewis gem in the desirable Tatum highlands neighborhood with Trail paths and children's park. Walk into the beautiful open living room with sweeping staircase to second floor which has master bedroom and 3 additional bedrooms along with full bath. Bedroom with walk-in closet and full bath first floor as well. Beautiful large entertaining kitchen with granite and stainless-steel appliance opens to inviting den. Large back patio looks out to pool spa and resort like private back yard. Well maintained home with new roof, 2 new air conditioning units, new pool pumps and double oven all 2023. Additionally exterior painted 2020 and interior fully painted in 2024. This is a must see

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1807 W Sierra Sunset Trail Phoenix, AZ 85085

$860,000

4 Beds

3.5 Baths

2,968 SqFt

Status Active

MLS # 6762514

Property Type Single Family Residence

Price Type --

Stunning TW Lewis home on premium corner lot in the sought-after gated community of Sonoran Foothills in N. Phoenix. This super clean, move-in ready home features a large gourmet kitchen w/lots of cabinets, a breakfast island, in-wall oven/microwave combo plus desk/workstation. The spacious family room has a media wall w/ gas fireplace and direct access to the private covered patio & backyard with no visible neighbors. The master suite also has access to the backyard & the luxurious bathroom feat. dual vanities, deep soaking tub, tiled shower and BIG walk-in closet. The secondary bedrooms are split from the rest & include one ensuite & another is perfect for office w/ double doors & access to front courtyard. Friendly community has many activities, close to K-8, shopping, I-17/101 & TSMC.

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