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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36627 N 18th Drive Phoenix, AZ 85086

$844,900

3 Beds

2 Baths

2,246 SqFt

Status Active

MLS # 6759814

Property Type Single Family Residence

Price Type --

Experience the essence of Southwest charm on this 1-ac Desert Hills property! This beautifully rebuilt 3-bdrm home, completed in 2022, boasts all the right finishing touches, meticulously chosen to create the feel of a brand-new custom home but with yard improvements including a pool & turf. Step into an expansive open concept living space that flows into a gourmet kitchen, featuring custom cabinetry, stainless-steel appliances, and a large island with granite counter tops. The primary suite includes a spacious walk-in closet and a private exit to the backyard oasis. Outside, you'll find a tranquil retreat with a covered patio in site of mountain vistas! Enjoy the easy-care turf lawn, fully fenced pool and a yard with ample room for additional improvements! Private well. create a perfect backdrop for both relaxation and entertainment. After a refreshing swim, unwind in the nearby sauna, or enjoy quiet moments under the charming gazebo. The fully block-fenced backyard ensures privacy and serenity for all your outdoor gatherings. Perfectly located near an array of shopping, dining, and recreational amenities, this home offers the ideal blend of natural beauty and modern conveniencetruly the best of Southwest living.

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26158 N 96th Drive Peoria, AZ 85383

$844,000

4 Beds

3 Baths

2,354 SqFt

Status Active

MLS # 6725121

Property Type Single Family Residence

Price Type --

One of only 72 homes in this stunning gated community. Enjoy your NEW, beautiful home in Querencia! This single-level home with 4 bedrooms and 2.5 bathrooms boasts an entertainment-ready backyard. Featuring a great room and split floor plan, an expanded garage, and a cul-de-sac corner lot location, this home truly has it all. Don't miss the opportunity to make this your dream residence! Walk to Great Hearts and BASIS Peoria super close.

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5825 N 107th Lane Phoenix, AZ 85037

$844,000

3 Beds

2.5 Baths

2,524 SqFt

Status Active

MLS # 6781894

Property Type Single Family Residence

Price Type --

This gorgeous home strikes a perfect balance of charm and modern elegance! Starting with a 4-car/RV garage, RV gate, & stone accents. Spacious open-concept floor plan boasts wood-look tile flooring & bountiful natural light promoting a homely ambiance. Chef's kitchen gleams w/stainless steel appliances, recessed lighting, a walk-in pantry, white cabinets w/crown molding, sleek quartz counters, tile backsplash, & a prep island w/a breakfast bar. Large main retreat is a true sanctuary that promises rest & relaxation! Plush carpet & an ensuite offering dual sinks, quartz vanity, a glass-enclosed shower, & a walk-in closet complete the picture! Versatile den w/French doors is ideal for work/play. Escape the hustle & bustle in the HUGE backyard w/a relaxing covered patio & artificial turf.

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7272 E Gainey Ranch Road Unit 110 Scottsdale, AZ 85258

$843,000

2 Beds

2 Baths

1,544 SqFt

Status Active

MLS # 6779795

Property Type Townhouse

Price Type --

Discover the perfect blend of comfort and style in this inviting 2-bedroom, 2-bathroom condo, located within the prestigious gated community of Gainey Ranch. This immaculate single-level residence boasts beautiful wood floors, plantation shutters and features Maytag appliances, ensuring both elegance and functionality. Enjoy the luxury of a direct entry 2-car garage. The versatile layout includes a dining area or office space, as well as an eat-in kitchen ideal for casual meals and gatherings. Step outside to your private covered patio, where a calming water feature adds tranquility to your outdoor experience. The Pavilions community has a sparkling pool and relaxing spa. The master Gainey Ranch community includes tennis & pickleball courts, extensive gym, 25 meter pool & clubhouse.

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18856 E Aubrey Glen Road Queen Creek, AZ 85142

$842,188

3 Beds

3.5 Baths

3,130 SqFt

Status Active

MLS # 6625124

Property Type Single Family Residence

Price Type --

MLS#6625124 VIRTUALLY STAGED PHOTOS ADDED. Welcome to Belmont at Legado Summit! This grand 1-story home is greets you with a porch that leads into a spacious foyer. As you enter, you'll find yourself in an open-concept area that seamlessly combines the kitchen, great room, dining room, and a covered patio. On one side of the home, there is a2-car garage, 2 bedrooms with ensuite full bathrooms, and a storage room. On the other side, you'll find a 2-car garage, laundry room, and a luxurious primary suite. The primary suite boasts a spacious bedroom, a beautiful bathroom & walk in closet. Structural options include: RV gate in backyard, multi slide door at great room, 2 car garage addition, re-plumb for future utility sink and laundry and garage, and gas line for future outdoor kitchen.

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22631 E San Tan Boulevard Queen Creek, AZ 85142

$841,990

3 Beds

2.5 Baths

3,131 SqFt

Status Active

MLS # 6784636

Property Type Single Family Residence

Price Type --

Up to 3% of base price or total purchase price, whichever is less, is available through preferred lender. The Enchantment Series is nestled in a private gated enclave within the popular Harvest community, just steps from swimming pools, a catch-and-release lake, and a beautiful park. Enjoy the perfect balance of tranquility and convenience, close to shopping and entertainment. The home features an oversized kitchen with a spacious island and pantry, ideal for hosting or simply unwinding. Its entertainer's dream layout includes an expansive L-shaped patio, perfect for indoor-outdoor living. Don't miss this exceptional opportunity.

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14674 W Pasadena Avenue Litchfield Park, AZ 85340

$840,000

5 Beds

4.5 Baths

3,910 SqFt

Status Active

MLS # 6772144

Property Type Single Family Residence

Price Type --

Prepare to be wowed by this ABSOLUTELY GORGEOUS former model home in Litchfield Park! This stunning 5-bedroom, 4.5-bath beauty boasts 3,910 sq. ft. of thoughtfully designed living space, including a spacious great room, formal dining area, and a versatile downstairs den that can serve as an office, playroom, or workout space. An additional upstairs loft provides even more flexible living options! Perfect for guests or multi-generational living, the one-bedroom suite on the main level includes a private bath and kitchenette for added convenience. The gourmet kitchen is a chef's dream, featuring elegant cabinetry, granite countertops, a gas cooktop, stainless steel appliances, a wide island with a breakfast bar, a convenient butler's area in the kitchen and a massive walk-in pantry, this home offers both style and expectational storage solutions. Step outside through the beautiful glass sliding doors into a low-maintenance backyard oasis with a paver patio, outdoor kitchen, artificial turf, fire pit, and a pergola-covered sitting area ideal for relaxing or entertaining. Upstairs, you'll find a luxurious primary retreat with dual vanities, a spa-like separate tub and shower, plus three additional bedrooms. All bedrooms feature spacious walk-in closets, and the abundance of storage throughout the home is truly unbeatable. This home is perfectly located near the Loop 303 and I-10 freeways, offering easy access to tons of shopping, entertainment, hiking, and biking trails. This is truly a great place to live!

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7272 E Gainey Ranch Road Unit 109 Scottsdale, AZ 85258

New

$840,000

2 Beds

2 Baths

1,393 SqFt

Status Active

MLS # 6784859

Property Type Townhouse

Price Type --

Beautiful updated home in one of the best and highly sought after communities and in the heart of Scottsdale! Located at the Pavilions at Gainey Ranch, this home is close to the newly completed Estate Club which includes tennis and pickleball courts, olympic size pool , media room, bar, amazing gym and more!! An absolute top notch facility! Community has 24/7 guard gated security as well! A beautiful golf course meanders throughout the entire development and the community is close to vast shopping, plentiful dining, and tremendous recreation of all sorts. The home itself boasts newer flooring and recent upgrades throughout including a custom walk- in closet in the master bedroom. Lots of upgrades. Balconies with a babbling brook below. Must see. Beautiful updated home in one of the best and highly sought after communities in the heart of Scottsdale! Located at the Pavilions at Gainey Ranch, this home is close to the newly completed Estate Club which includes tennis and pickleball courts, Olympic Size pool , media room, bar, and an amazing gym and more!! An absolute top notch facility! Community has 24/7 guard gated security as well! A beautiful golf course meanders throughout the entire development and the community is close to vast shopping, plentiful dining, and tremendous recreation of all sorts. The home itself boasts newer flooring and recent upgrades throughout including a custom walk- in closet in the master bedroom. Newer lighting, countertops, tankless water heater, and an entire home treatment system. From the beautiful balcony off of the Kitchen and living room you can sit in your own peaceful oasis surrounded by a multitude of lovely trees with the sounds of singing birds and overlooking the babbling brook and pond below. A must See!!

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491 E Vermont Drive Gilbert, AZ 85295

$840,000

3 Beds

3.5 Baths

3,696 SqFt

Status Active

MLS # 6769096

Property Type Single Family Residence

Price Type --

Huge Price Adjustment for a swimming pool & extras! 2 Master bedrooms upstairs (split floor plan); 1400 sqft Basement (1 bedroom and 1 gym/studio room) and a large entertainment room in basement; a 3-car garage and a manicured landscape in a highly sought after Jakes Ranch gated community built by TW Lewis. Large living & dining room with entertainment niches will greet you upon entering. Abundant natural light filled the spaces, complemented by a blend of tile & hardwood flooring, fresh neutral paint, and dual pane windows. Chef's kitchen offers recessed lighting, built-in appliances, ample cabinets & cupboards adorned with crown molding, granite counters, tile backsplash, desk area, and a prep island with a breakfast bar. Let's not forget about the breakfast nook with a lovely bay wi

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491 E Twelve Oaks Drive Flagstaff, AZ 86005

$840,000

4 Beds

3 Baths

2,049 SqFt

Status Active

MLS # 6772013

Property Type Single Family Residence

Price Type --

This house has it all! Standing tall with spectacular views, adorned with mature ponderosa and blue spruce, a lush backyard, and the perfect front porch for rocking chairs. Inside, you're welcomed with a warm stone fireplace, new light fixtures and new cohesive flooring throughout. The kitchen boasts stainless steel Frigidaire appliances, new disposal, new quartz countertops and stylish backsplash. Vaulted ceilings in the primary bedroom lit by chandelier gives an opulent vibe, doubled by the gas fireplace to set the tone just right for those lazy Sunday mornings. A full en suite is ready to host your next spa-like experience with soaking tub, dual sink and glass block for privacy. The extra large fourth bedroom above the garage can double as a second living room, playroom, hobby room or guest space. New windows! Secure an offer today and move in by the holidays!

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16686 S 18th Way Phoenix, AZ 85048

$840,000

4 Beds

2.5 Baths

2,516 SqFt

Status Active

MLS # 6784161

Property Type Single Family Residence

Price Type --

Rare single level 4-bedroom, 2.5-bath home on the prestigious Troon-managed Foothills Golf Course offers breathtaking views of South Mountain and our Arizona sunsets, with a resort-style pool and expansive cool decking. The open-concept layout features a spacious great room, separate living and dining areas, ideal for entertaining. The updated kitchen is a chef's delight featuring double ovens, granite counters and underlit cabinetry. Enjoy the split floor plan and elegant plantation shutters and fresh Rhino Shield exterior paint w/25 year guarantee. With a whole house water purifier, new modern style flat tile roof, 3-car garage w/hanging storage racks & epoxy coated floors, AND located in the gorgeous Ahwatukee Foothills, this home combines comfort and luxury in one stunning package!

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1512 W Ardmore Road Phoenix, AZ 85041

$840,000

5 Beds

3 Baths

3,308 SqFt

Status Active

MLS # 6717611

Property Type Single Family Residence

Price Type --

This is your Dream Home! Escape the City life in this absolutely spectacular spacious Dream Home which spans over 3,300 sqft. Nestled in a prime location at the foot of the South Mountain hiking trails in the exclusive gated Commons at South Mountain community. As you enter this well-appointed home through the gated courtyard, you are greeted by abundant space and beauty with a formal front room, a large great room, and an open floor plan. The delightful well-appointed island kitchen and built-ins, seamlessly opens to the family room, creating a harmonious flow throughout the home. Whip up Gourmet meals on your gas cooktop, surrounded by beautiful dark granite counters, designer cabinetry, and a Large center island as the perfect space for entertaining. Whether in the formal dining area, or the off kitchen breakfast nook, relax and enjoy your culinary delights. Each of the 5 spacious bedrooms are well laid out with high ceilings, with one separated from the others, making for a quiet in-home office or guest room. The Master bedroom leaves nothing to want for with its large western facing windows and a spa-like en-suite bathroom for the ultimate in luxury and privacy. There is also an added bonus space where family members can relax and enjoy an additional layer of peace and quiet. This East-facing home allows for great ambient lighting throughout the day, with a spacious covered patio that greets you with stunning views of the nearby mountains and front row seats for our world class Arizona sunsets. This home backs to a private community park, providing additional privacy and natural beauty. An RV gate and drive through 3rd-bay garage make storing your toys simple. Beautiful custom pavers weave throughout the maintenance-free landscape on all parking and walkway areas. Don't miss the opportunity to own this exceptional property with its stunning views and premium amenities. Experience the true essence of luxurious living! Motivated Seller! Bring Your Best Offer. This stunning is now available at a reduced price and the seller is motivated to sell. Don't miss this opportunity to own a beautiful property at a fantastic price. Submit your best offer today!

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