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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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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753 E Mountain Sky Avenue Phoenix, AZ 85048

$860,000

6 Beds

4.5 Baths

3,432 SqFt

Status Active

MLS # 6764073

Property Type Single Family Residence

Price Type --

WOW! Fantastic floor plan. Spacious 6 bedroom (5 bedroom plus office) 1 bedroom down with en-suite bath. total of 4.5 baths. situated in an excellent foothills location backing to a private hillside preserve lot! Beautifully upgraded home with custom cabinetry at kitchen with soft-close hardware, granite countertops, stainless appliances. Double ovens, Elegant plantation shutters, travertine stone flooring, soft water system. Custom beverage center with built-in wine fridge. Balcony off master offer scenic views. Backyard is entertainers dream with sparkling pool, fireplace, built-in bbq and sitting area with pergola. Excellent views of private hilside preserve!

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8735 E Mustang Trail Scottsdale, AZ 85258

$860,000

3 Beds

2 Baths

1,698 SqFt

Status Active

MLS # 6782283

Property Type Single Family Residence

Price Type --

Welcome to this exquisitely-remodeled Spanish Modern home, where timeless warmth meets contemporary elegance. Tucked away in the quiet, northeast corner of McCormick Ranch, this 3/2/2 north/south single-family home is a masterpiece of design, blending cozy, inviting spaces with sophisticated finishes. Every room has been curated with a sense of luxurious, timeless design. Retreat to a sanctuary of calm in the primary suite with a spa-inspired en-suite bathroom and walk-in closet. Or step outside through any of the three large patio sliders into a private backyard with an oversized covered patio and a cozy fire pit area for evening gatherings under the stars. Upgrades include: Taj quartz countertops, large kitchen island, new cabinets and hardware, Roman plaster oven hood... new appliances, new lighting fixtures and fans, recessed LED lights, waterproof laminate flooring, new tile, new plumbing fixtures, laundry sink, freestanding soaking tub, walk-in shower, new bathtub in guest, Kohler plumbing fixtures in sinks/showers, fresh paint, new doors and hardware, new skylights, new roof foaming, newly-coated garage floor, new driveway, new paver back patio with new rock/gravel and new landscaping in backyard with new timer-controlled irrigation lines. All renovation work was performed by quality, licensed contractors and permitted/passed with the City of Scottsdale with zero failed inspections. Access to subdivision amenities is within walking distance, including biking/walking paths, tennis, pickleball courts, and a heated pool and spa. Located close to top medical facilities, schools, shopping, and dining, this home offers not just a place to live, but a place to thrive in style and comfort. Experience the essence of Spanish modern charm and make this dream home yours today.

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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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21487 E Arroyo Verde Drive Queen Creek, AZ 85142

$860,000

5 Beds

3 Baths

3,172 SqFt

Status Active

MLS # 6765985

Property Type Single Family Residence

Price Type --

Experience the perfect blend of luxury and comfort in this exceptional 5 bed/3 bath home in Hastings Farms. This spacious residence offers a thoughtfully designed interior & a resort-style backyard, ideal for hosting and relaxation. Upon entering, you'll be welcomed by abundant natural light and an open floor plan. The gourmet kitchen, complete with modern appliances, a double oven, expansive countertops, and a center island, is a dream for any culinary enthusiast. The five bedrooms provide flexibility for a home office or guest room, while the three stylishly appointed bathrooms, including a master ensuite, offer both convenience and elegance. The master suite features a generously sized walk-in closet, and the bonus room is perfect for creating the versatile space of your choice! 3-car tandem garage includes custom cabinets, plenty of storage space & overhead air pump. Backyard has it all - HUGE pool, cantilever ramada to extend covered patio, putt putt area, see through fencing to community greenbelt & plethora of citrus trees on RV gate side!

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13307 W Rincon Drive Sun City West, AZ 85375

$860,000

2 Beds

2.5 Baths

2,784 SqFt

Status Active

MLS # 6779212

Property Type Single Family Residence

Price Type --

Your Top Tier 3 wants in a home have arrived...Golf Course, Pool & 3-car garage. You won't be disappointed w/this Figueroa Model tucked inside the 45+ Gated Community of Corte Bella Country Club. This 2 bedroom suite plus Den, home is set up for the fussiest buyers w/plenty of rooms for entertainment. Primary suite has access to bk yard. The kitchen has SS appliances, butler pantry, walk-in pantry, breakfast bar & eat-in kitchen. Upscale outdoor living, entertaining patio & landscaping at its finest w/front courtyard & entertaining backyard w/a lazy river resort style lounge pool...bring your floaties. Perfectly positioned at the Signature 14th hole w/stunning sunset & mountain views. Updates include AC units, Epoxy garage floor, water heater, water conditioner & SOLAR Paid

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10851 E Le Marche Drive Scottsdale, AZ 85255

$860,000

2 Beds

2 Baths

1,936 SqFt

Status Active

MLS # 6763267

Property Type Single Family Residence

Price Type --

This spectacular home is located in McDowell Mountain Ranch's desirable, gated Castle Chase subdivision. Largest floor plan in Castle Chase. Lot offers a private setting w/ upgrades featuring an automated cantilevered patio shade (pergola-like structure) w/ remote and automated shade screen on the side and extended travertine patio w/ TV mount and peek-a-boo mountain views make this a great, low-maintenance space to relax and entertain. The impressive interior has been impeccably maintained by owner and is move-in ready. Functional, split floor plan offers 2 spacious bedrooms (primary bedroom has additional closets and sitting area), plus office w/ built-in desk and shelves, formal dining area, and living room. Plantation shutters throughout! Eat-in- kitchen w/ center island and breakfast bar, open to family room. The kitchen has an RO system and cabinets have soft close cabinetry and pull-out shelving. Updated light fixtures. Screen doors both in front & back for air flow on those lovely fall days. Roof replaced 2019. Water heater replaced 2022. Garage has cabinets, sink, and storage racks. Castle Chase offers its own private heated pool and spa, private workout facilities, and ramada. Perfect for a full-time resident or someone looking for a lock and leave property. Only minutes to West World, entertainment/events, fine dining, golf, hiking trails, and much more. Award-winning McDowell Mountain Ranch has a large range of luxury amenities within the community and nearby including two community parks featuring Pickleball, heated pool and spa, splash pad, basketball court, large grass area, and tennis courts. McDowell Sonoran Preserve and Trail system, McDowell Mountain Golf Club, City of Scottsdale Aquatic Center, library & schools and so much more...! Come fall in love with this community, then fall in love with this house.

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2018 E Avenida Del Sol -- Phoenix, AZ 85024

$860,000

5 Beds

3.5 Baths

3,978 SqFt

Status Active

MLS # 6779429

Property Type Single Family Residence

Price Type --

Be sure to check out this large 3978 sq ft 5 bedroom home with solar heated pool, hot tub and built in BBQ. The home is located in the community of Mountaingate North and nestled within the peaceful serene of the virtually adjacent mountains. Features include a downstairs master bedroom suite, cooled 3-car garage with storage cabinets and racks, outdoor fireplace, synthetic grass play area, fenced bool and hot tub, stainless steel appliances and a huge upstairs loft with its own large storage closet! The location just 3 doors East of the nearby mountain offers plenty of afternoon shade to enjoy the backyard during the warm summer months. The house has been freshly painted inside and awaits a new family to enjoy. Owner/Agent

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7296 E San Alfredo Drive Scottsdale, AZ 85258

Open House

$860,000

2 Beds

3 Baths

2,218 SqFt

Status Active

MLS # 6779525

Property Type Townhouse

Price Type --

Beautiful Gainey Village Casita Viento floorplan. Former model with 2 bedrooms, 3 baths, office/den with built ins. Granite slab designer fireplace, slate floors downstairs, hardwood upstairs. Wonderful kitchen with white cabinetry, double ovens and subzero refrigerator. Granite island and countertops ,soft close drawers, informal eating area . Upstairs includes a loft. Spacious primary bedroom with crown molding and primary bathroom with newer shower. Guest bedroom with full bath. Walk through French doors to a delightful yard with a beautiful fountain Greenbelt behind so no home behind you! One of the best casita lots! Mature landscaping plus lovely fountain. Near community pool /spa and pedestrian gate to go to restaurants , shops a few steps away . Great location!

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