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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845 W Edgemont Avenue Phoenix, AZ 85007

$852,500

4 Beds

3 Baths

2,926 SqFt

Status Active

MLS # 6746372

Property Type Single Family Residence

Price Type --

This home is on the Golf course of Encanto a 18 hole golf course. This home was built with a formal living room, formal dining area, large family room with lots of picture windows to the golf course. Large oversized kitchen with informal dining again with picture windows to the course. Master is in the front of the house facing North, other bedrooms face West or South. Two car garage, large lot, has been a rental with non smoking. Home has renters present currently till August 2025 Please do not disturb

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10134 E Talon Avenue Mesa, AZ 85212

$852,000

5 Beds

3.5 Baths

3,422 SqFt

Status Active

MLS # 6750874

Property Type Single Family Residence

Price Type --

Experience luxury living in this stunning Toll Brothers home located in the prestigious Cadence community, Mesa, AZ.

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18083 W Amber Drive Goodyear, AZ 85338

$850,000

4 Beds

3 Baths

2,766 SqFt

Status Active

MLS # 6771003

Property Type Single Family Residence

Price Type --

BRAND NEW Construction w/ Custom-Quality Upgrades! This beautiful Modern Farmhouse is located in an AMAZING location on 1 ACRE of FENCED Horse Property. Gourmet Kitchen w/ WOLF Appliances, high-end Cabinets w/ 42'' uppers, White Quartz Countertops, 36'' WOLF Cooktop & Range, Built-in Stainless-Steel pull-down Microwave & Wood Plank Tile Floors. Stunning Master Bathroom w/ Freestanding Soaking Tub, BEACH ENTRY Shower & Double Vanities. Exceptional Energy Efficient - boasting Spray Foam Insulation, Premium Trane AC units & High-end Windows. Superior Construction & Craftmanship includes Premium Roofing System, Premium Synthetic Stucco & more! $5,000 to Buyer at Close of Escrow which shall be used towards Buyer installing a water filtration system. Estimated completion date in Feb/March.

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8746 E Vía De Viva Street Scottsdale, AZ 85258

$850,000

4 Beds

3 Baths

1,995 SqFt

Status Active

MLS # 6783941

Property Type Townhouse

Price Type --

Welcome to this exceptional, fully remodeled 4-bedroom, 3-full bathroom mid-century modern gem! Thoughtfully designed with a seamless flow, this open concept home offers perfect harmony between living, dining, and kitchen spaces. You'll find stunning mid-century cabinetry paired with rich granite countertops, creating a stylish and inviting atmosphere. The spacious primary bedroom suite has tons of closet space and stunning bath with extra-long counters and expansive lighted mirrors. The home boasts two additional large bedrooms and a versatile bonus room that open onto a grand outdoor patio, complete with new contemporary shade sails—perfect for entertaining or relaxing. The fourth bedroom is ideal for a home office, offering privacy from the main living areas. Every detail exudes sophistication, from the extra-large format tile flooring throughout to the brand-new appliances, lighting fixtures, ceiling fans, and plumbing fixtures. The upgrades include new doors, hardware, skylights, roof foaming, and landscaped backyard with timer-controlled irrigation linesall completed by licensed contractors with full city permits. Enjoy community perks just a short walk away, including a heated pool, spa, clubhouse, and free RV parking. This prime location puts you close to top medical facilities, schools, shopping, and dining, with popular destinations like Salt River Fields, McCormick-Stillman Railroad Park, Ritz-Carlton PV Resort, and the Palmeraie Shops only minutes away. Don't miss the chance to own this meticulously crafted home, where mid-century charm meets modern luxury in the heart of Scottsdale!

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8565 E Vía De La Escuela Street Scottsdale, AZ 85258

$850,000

3 Beds

2 Baths

1,700 SqFt

Status Active

MLS # 6779002

Property Type Single Family Residence

Price Type --

Hard to find great room floor plan located on a private north/south cul-de-sac lot, with a pool. Very well kept, one owner property with some recent updates that include travertine flooring, stacked quartz fireplace, and a beautiful custom front door. The heart of this home is the spacious chef's kitchen that provides tons of storage space, and boasts newer GE appliances. Formal dining and bar seating make this a great space for entertaining, with french door access out to the covered patio and yard. Huge laundry room. Immaculate and insulated garage with more storage and epoxy floor. New toilets, tankless water heater, and pool filter in 2023. Prime McCormick Ranch location near parks, greenbelt, top rated schools, retail/entertainment at the Pavilions, Talking Stick, and spring training

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22685 N 225th Avenue Surprise, AZ 85387

$850,000

4 Beds

2.5 Baths

3,250 SqFt

Status Active Under Contract

MLS # 6771635

Property Type Single Family Residence

Price Type --

A beautiful 4 bed, 2.5 bath residence in Surprise is now for sale! Discover a spacious open floor plan w/tile flooring, modern light fixtures, and neutral palette throughout. The fabulous kitchen is equipped w/everything you'll need for home cooking, white cabinetry w/crown moulding, a walk-in pantry, quartz counters, tile backsplash, stainless steel appliances, and an island complete w/a breakfast bar. You'll love the primary bedroom, featuring soft carpet, private outdoor access, a walk-in closet, and a lavish ensuite w/dual sinks & a freestanding tub. Also including a large covered patio and tons of space for a pool or guest house, this home is a dream come true! Act now before it's gone! Home has two large garages both with additional storage space built in. Quality new construction with standard one year builder warranty.

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8732 E Valley Vista Drive Scottsdale, AZ 85250

$850,000

3 Beds

2 Baths

1,518 SqFt

Status Active

MLS # 6750641

Property Type Single Family Residence

Price Type --

Welcome to 8732 E Valley Vista Dr, a beautifully updated gem nestled in the heart of Scottsdale, AZ. This inviting residence offers a perfect blend of contemporary comfort and classic charm, situated in a serene and desirable neighborhood. This home provides ample space for both relaxation and entertainment. The open-concept floor plan seamlessly connects the living, dining, and kitchen areas, making it ideal for gatherings with family and friends. The recently remodeled kitchen is a culinary enthusiast's dream, featuring sleek countertops, modern cabinetry, and top-of-the-line appliances. Enjoy preparing meals with ease and style in this bright, functional space. The home includes 3 well-appointed bedrooms, each offering generous closet space and natural light. The primary suite is a true retreat, complete with a luxurious en-suite bathroom for your relaxation and comfort. Step outside to your private backyard sanctuary, designed for both leisure and entertaining. The beautifully landscaped yard includes a stunning pool and spa, featuring lighting that illuminates the space with a captivating glow. Enjoy the convenience of controlling the lighting and spa temperature right from your smartphone, allowing you to set the perfect ambiance at your fingertips. Whether you're hosting a soirée or relaxing under the stars, you can easily adjust colors, brightness, and lighting/heating timers to create the ideal atmosphere. Situated in the sought-after Scottsdale community, this home offers easy access to local amenities, including shopping, dining, and entertainment options. Enjoy the convenience of being close to major roads and top-rated schools. This residence combines luxury with functionality, providing a tranquil retreat in one of Scottsdale's most coveted neighborhoods. Don't miss the opportunity to make this exceptional property your new home!

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31416 N 166th Place Scottsdale, AZ 85262

$850,000

3 Beds

2.5 Baths

3,340 SqFt

Status Active

MLS # 6654176

Property Type Single Family Residence

Price Type --

Are you looking for views, peace, privacy, and luxury all at an affordable price? Welcome to one of North Scottsdale's finest custom homes with no hoa, horse privileges, room for toys, and space! Beautiful custom home on over an acre features 3 bedrooms, 2.5 baths, an Office (which could be a 4th bedroom) and game room. Travertine flooring throughout, gourmet kitchen with stainless steel appliances, granite countertops and beautiful cabinets; also has a large island, a breakfast room and opens to a great room with a fireplace. The large sliding glass doors open all the way into the wall from the great room to an extra large covered patio with pavers to enjoy the majestic views of the mountains. Extensive landscaping upgrades, fencing, and easy care vegetation. Check out the video tour!!

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42008 N Astoria Way Anthem, AZ 85086

$850,000

4 Beds

3.5 Baths

3,364 SqFt

Status Active

MLS # 6664607

Property Type Single Family Residence

Price Type --

This Anthem Country Club 4 Bedroom features a guest casita with a full bathroom and private entrance. Enjoy a serene front courtyard with a soothing water fountain. Inside, the home boasts neutral colors throughout complemented by18-inch diagonal tile and textured carpeting. The kitchen is a chef's delight, equipped with a skylight, stainless steel appliances, double oven, microwave, gas cooktop, granite countertops, raised cabinetry, a breakfast bar, and a generously sized walk-in pantry. With a split floor plan including three bedrooms plus a den, privacy is ensured. Additional highlights include a Jack and Jill bathroom and built-in garage cabinets. Outside, savor views of the desert wash and Daisy Mountain. Buyer to verify all information.

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36444 S Us Highway 85 -- Unit 13 Buckeye, AZ 85326

$850,000

4 Beds

2.5 Baths

2,028 SqFt

Status Active

MLS # 6719101

Property Type Single Family Residence

Price Type --

Embrace the allure of magnificent sunsets, glass-smooth water for skiing, & miles of wilderness for ATV riding. Lakeside Ski Village is a private, gated enclave with 21 homes on 2 tournament ski lakes, with 2 regulation slalom courses & jump ramp. Enjoy oversized garages, a climate-controlled RV garage with 220V power, & full home reverse osmosis water filtration, plus NEW HVAC. This home includes a covered dock w/ a boat lift. Lakeside is the only ski community in AZ with an on-site gas dock, making your lake adventures hassle-free. With the lowest HOA fees of any AZ tournament lake, it includes an on-site caretaker for the common area. Don't miss this exceptional opportunity.

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3212 E Constance Way Phoenix, AZ 85042

$850,000

3 Beds

2.5 Baths

2,588 SqFt

Status Active

MLS # 6725328

Property Type Single Family Residence

Price Type --

Gated community at the base of South Mountain with a cool green common area for getting in your steps and playing for kids and dogs! Quiet interior lot with views of South Mountain, trails are steps from your door for hiking and mountain biking the miles of trails at So Mtn Preserve and the canals. Central location minutes to the airport, downtown, ASU and East and West Valley. Impressive entry with brick driveway, stone rotunda with massive iron gated door! 20 inch travertine tile, 8 foot doors, 10 foot coffered ceilings with double crown molding, carved granite gas fireplace, art niches, and wood plantation shutters throughout! Gourmet kitchen with a floorplan perfect for entertaining. Patios provide outdoor enjoyment off of all the main rooms including primary master suite! 3car garag Central vac, soft water and RO drinking water filtration. 11 premium ceiling fans. Epoxy garage floors and lemon and lime tree in backyard!

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10838 N 37th Place Phoenix, AZ 85028

$850,000

5 Beds

3 Baths

2,436 SqFt

Status Active

MLS # 6732188

Property Type Single Family Residence

Price Type --

Welcome To Your Dream Oasis! Discover this beautifully remodeled gem situated on an oversized lot in a cul-de-sac. This home boasts an inviting bright white kitchen that opens to an expansive dining and living areas, perfect for entertaining. Enjoy the beauty and comfort of wood floors throughout and stylish quartz countertops. Spacious Laundry Room/Butler's Pantry makes organizing a breeze and has plenty of room for an extra refrigerator. Spend your evenings in this lush backyard oasis by the custom stone fireplace after you've dined on the covered patio. The NEWLY BUILT GUEST HOUSE is Ideal for additional income or extra housing for family members. RV Parking behind the electric gate accommodates all your toys with ease. This one has it all! Don't wait!

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