Mortgage Myths: Here’s Why You Don’t Need a Full 20 Percent Down Payment

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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8518 E Wood Drive Scottsdale, AZ 85260

$3,399,000
5 Beds
4.5 Baths
4,931 SqFt
Status Active Under Contract
MLS # 6722523
Property Type Single Family Residence
Price Type --
Incredible SoHome Scottsdale Designed Custom Home on a Full Acre Lot, Fresh Remodel From Floor to Ceiling. 5 bedrooms plus a bonus/playroom plus office & workout space, 4.5 baths 3 car garage move in ready and no HOA! Some of the amazing upgrades include: 3 large Andersen Multi slide door, new Milgard windows throughout, new roof, all new flooring, fresh paint inside/out, quartz countertops, new plumbing fixtures, carpet, cabinets, custom front metal door, light fixtures, hardware... everything is new. Open floor plan has lots of natural light and open entertaining spaces. Large kitchen with 11 foot island, and gas (propane) cooktop. Laundry Room with doggy spa. Full acre lot with mountain views and mature landscaping, new sod and lots of room to build garage or guest house.

24614 S 183rd Place Gilbert, AZ 85298

$3,396,000
7 Beds
6 Baths
7,076 SqFt
Status Active
MLS # 6765928
Property Type Single Family Residence
Price Type --
Experience luxury in this custom-built 7-bed, 6-bath estate on a one-acre lot within a gated community, offering breathtaking San Tan Mountain views. The 5,876 sq.ft. MAIN HOUSE features 5 spacious bedrooms, a game room, and an office, while the 1,200 sq. ft., 2-bedroom GUEST HOUSE is ideal for visitors or extended family. Step inside to find luxury at every turn, from the grand iron glass door to the sleek 100'' electric fireplace, wine cellar, 10'x16' pocket patio door, and windows with dual-shade blinds THE CHEF'S KITCHEN is designed for culinary excellence, with Thermador appliances, a Sub-Zero fridge, 3-slab quartzite countertops, a walk-in pantry, large storage, and a separate BUTLER'S KITCHEN. THE MASTER RETREAT includes a large sitting area, a spa-like bath with a freestanding soaking tub and walk-in shower, and a custom-designed closet with a marble-topped island, soft-close drawers, and a washer/dryer hookup. All large bedrooms feature walk-in closets, with one offering an ensuite. The laundry room is prepped for a dog-wash station. The backyard boasts an oversized POOL, heated spa, and firepit. THE 4-CAR GARAGE includes an electric vehicle charging station, epoxy floors, and tall roll-up doors. With space for additions like an RV garage or sports court, this estate offers endless potential. Conveniently located near top-rated schools, Seville Golf Community, San Tan Loop 202, and Gilbert Regional Park, this luxury home is a one-of-a-kind opportunity.

4849 N Camelback Ridge Road Scottsdale, AZ 85251

$3,395,000
2 Beds
3 Baths
2,294 SqFt
Status Active
MLS # 6681501
Property Type Apartment
Price Type --
This unique loft style home features 10' ceilings in the living area with spacious indoor/outdoor living and a lower garden/yard. This home is exceptional with its soaring ceilings and phenomenal views of Camelback Mountain. Featuring 1 bedroom, 2 full baths, a den and 2 reserved parking spaces. Tucked at the base of Camelback Mountain, Ascent is a new, private gated residential enclave adjacent to The Phoenician Resort - one of Arizona's premier luxury resorts. Home designs feature contemporary architecture integrating warm, natural materials, expansive windows, stacking door systems opening to a large outdoor patio with fire feature and BBQ Thoughtfully designed by Nelsen Architects and Vallone Interior Design. Luxury finishes include exquisite Bulthaup Kitchens, hardwood floors, .....

11142 N Viento Court Fountain Hills, AZ 85268

$3,395,000
3 Beds
3 Baths
4,100 SqFt
Status Active
MLS # 6762634
Property Type Single Family Residence
Price Type --
This property is the perfect soft contemporary, empty nester, ONE LEVEL home you've been waiting for. Absolutely captivating and unobstructed airliner views from Four Peaks, to the Fountain to Camelback Mountain and city lights galore! This tastefully designed ridgetop 2022 build is a manageable and beautiful 3 bedroom, three bathroom open concept (great room) layout perfect for those seeking a fabulous entertaining space without superfluous square footage. Gorgeous kitchen and finishes, with a stunning 20-foot beamed ceiling and 20' retractable slider in the great room for views and indoor/outdoor living. See the 2-car garage and a massive 35' deep RV / boat garage perfect for the toys. The travertine pool deck, hot tub and negative edge pool maximize the sunset view experience.

6230 E Calle Del Norte -- Scottsdale, AZ 85251

$3,395,000
4 Beds
3.5 Baths
3,962 SqFt
Status Active
MLS # 6770883
Property Type Single Family Residence
Price Type --
This beautiful sprawling ranch has a perfect open floor plan and loads of charm and character. The upscale island kitchen has double ovens, double dishwashers, warming drawer, custom cabinetry, and a breakfast bar, the great room is lined with french doors creating a bright sun filled space, the formal living and dining rooms are great for intimate family gatherings as well as large scale entertaining, there's a fantastic custom built home office, and the impressive primary suite has an extra large bath. Sitting in a highly sought after Arcadia neighborhood, the oversized lot houses a gorgeous pool, built-in barbecue, large covered patio, and super mature, lush grounds. This home is wonderful as is, yet it has endless potential to go to the next level!

10800 E Cactus Road Unit 58 Scottsdale, AZ 85259

$3,395,000 - 5Br/5Ba -  for Sale in Cactus Gates, Scottsdale
Open House
$3,395,000
5 Beds
4.5 Baths
4,117 SqFt
Status Active
MLS # 6768905
Property Type Single Family Residence
Price Type --
Updated with the finest finishes & amenities, and featuring over an acre lot - this is the one you've been waiting for all summer to be finished! The current owner originally built this home, bought it back from the people he sold it to, and made it even better! No detail was left out...from the unique sunken poolside BBQ with built-in bar stools to the soaking tub with a gas fireplace, bubble chandelier and picture window for ambiance. The formal dining room has mountain views and the custom social room boasts two cooled wine walls, built-in buffet and access to the oversized covered patio and rear yard for easy entertaining. The rear yard living space boasts a poolside ramada, shade trees, tons of real grass, a pickle ball court/ sport court, children's play area with swing set and a gorgeous pool with water features. The custom step-down BBQ area features a BBQ and wet sink and has a custom pergola shade structure complete with party lights for nighttime fun in the pool. An oversized covered patio has multiple areas for seating, and easy access to the home from the kitchen, family room, pool bath area, social room and primary bedroom. Wood floors, soaring ceilings and fresh paint set the stage for the rest of this amazing home. The beautifully appointed kitchen opens to the large family room which features a gorgeous 6' fireplace and stacking sliders to open the entire room to the outdoor living space. Light fixtures & fans from Valley Light Gallery and custom cabinets are found throughout the home, as well as beautiful slab Quartzite countertops and top tier plumbing fixtures. Contemporary tile was used to create custom kitchen and bathroom finishes as well as the fireplace surrounds. The exclusive 65-lot gated community of Cactus Gates has retained its privacy and charm since it was built, with many original home owners still residing in their custom homes to this day. Being near schools, parks, hiking trails, shopping, restaurants and so much more makes this neighborhood desirable and hard to get into because the homes for sale in it are few and far between. Closely associated with Taliesin, don't miss the Frank Lloyd Wright influence on a few of the homes as you drive the subdivision!

8537 E Los Gatos Drive Scottsdale, AZ 85255

$3,390,000
5 Beds
4.5 Baths
4,590 SqFt
Status Active
MLS # 6714679
Property Type Single Family Residence
Price Type --
Experience luxury living in the exclusive gated community of Los Gatos, North Scottsdale. Designed by renowned builder Geoffrey Edmonds, this home features a charming front courtyard and a meticulously crafted floor plan that provides an open and flowing main living space, ideal for daily living and entertaining friends and family. The light-filled interiors boast expansive windows with views of the landscaped backyard. The large eat-in kitchen is equipped with wood floors, wood beams, an island with a sink, extensive granite countertops, six-burner gas range, side-by-side refrigerator and freezer, and a warming oven, all seamlessly connecting to the family room with a fireplace. A formal dining room offers additional dining options. The principal suite, located apart from the ... three guest bedrooms, includes a sitting area with a fireplace. A separate casita with a refrigerator and microwave enhances guest privacy. Large multi panel glass doors lead to patios, both covered and uncovered, perfect for Arizona's outdoor living lifestyle. The sprawling backyard features lush green grass, a pool with a water feature, a spa, an outdoor kitchen with a built-in BBQ and refrigerator, and a gas fire pit. The north/south orientation boasts a panoramic view of the McDowell Mountains and captures sunsets and city lights.

10025 N 78th Place Scottsdale, AZ 85258

$3,390,000 - 4Br/5Ba -  for Sale in Gainey Ranch, Scottsdale
Open House
$3,390,000
4 Beds
4.5 Baths
4,483 SqFt
Status Active
MLS # 6738053
Property Type Single Family Residence
Price Type --
Showcasing over $350,000 in recent enhancements, this 4 bed/4.5 bath home, with additional large bonus/flex/game room, is located in the gated North Meadow I section of Gainey Ranch. Set on a prime golf course lot with stunning views of the 6th hole of the Dunes course, this property epitomizes luxury living. The gourmet kitchen is a chef's paradise, featuring high-end appliances and custom cabinetry. Step outside to discover a beautifully landscaped oasis that includes a sparkling pool, hot tub, fire bowls, built-in BBQ, and outdoor patio. Residents also enjoy access to the Gainey Estate Club, which offers state-of-the-art fitness equipment, pickleball, tennis, lap pool, and spa facilities.

10629 E Troon North Drive Scottsdale, AZ 85262

$3,380,000
5 Beds
7 Baths
7,443 SqFt
Status Active
MLS # 6666657
Property Type Single Family Residence
Price Type --
Welcome to your dream oasis in the heart of the luxurious gated community of Talus at Troon North. This stunning Italian-inspired Custom Home is a masterpiece of architectural elegance and timeless design. Nestled on an expansive ~1-acre corner lot, this home enjoys the utmost privacy within a serene cul-de-sac setting. As you approach the residence you are greeted by a grand gated entry courtyard adorned with two majestic fountains and lush landscaping, setting the tone for the opulence that awaits inside. With a spacious 7,443 SF of living space, this five-bedroom, seven-bath estate offers an impressive array of features and amenities. The main level of the home boasts a functional & well-thought-out floor plan. Three generous bedrooms PLUS 420SF Casita plus Office (CLICK ''MORE'')... Four bedrooms on main level plus a stunning ensuite office w/ closet, private patio and calming water feature, all ensure ample space for family and guests. The upstairs area is dedicated to entertainment, featuring a media/game room with an exterior balcony that provides breathtaking views. This upstairs compound has bath, deck, closet & kitchenette= BR5. For those seeking additional privacy, an ensuite guest casita with a kitchenette, closet and private entrance can be found off the charming front courtyard. This home is a paradise for those who love to entertain. The kitchen seamlessly connects to the family room, complete with a wet bar and convenient access to the wine cellar, which is large enough to accommodate a tasting table. The kitchen itself is a chef's dream, featuring top-of-the-line appliances, including a Viking gas cooktop, two Wolf wall ovens, two Asko dishwashers, three sinks, and dual Sub Zero fridge/freezers. The master suite is a sanctuary of luxury, occupying its own private wing of the home. It includes a cozy sitting room with a fireplace, a sumptuous bathroom highlighted by a sunken jetted tub framed with Cantera stone columns and an inviting fireplace. Additionally, there is a safe room and even a hookup for a washer/dryer in one of the three walk-in closets, providing ultimate convenience. Every inch of this residence exudes elegance and sophistication. It is loaded with first-class amenities, including fresh interior paint and new carpet, a domed entry ceiling, an exotic pool and spa surrounded by travertine pavers (recently refinished), a three-car garage with an extra detached bay for a total of four car garages, and a total of five fireplaces throughout the home for added warmth and charm. Cantera stone accents adorn both the interior and exterior, while polished travertine flooring and electronic shades add to the overall sense of luxury. This home is simply impressive and offers a lifestyle of grandeur, elegance, and sophistication. Don't miss the opportunity to make this exquisite Italian-inspired residence your own, and experience the epitome of luxury living in the exclusive Talus at Troon North community.

6436 E Clinton Street Scottsdale, AZ 85254

$3,371,250
5 Beds
5.5 Baths
5,071 SqFt
Status Active
MLS # 6716201
Property Type Single Family Residence
Price Type --
NEW from Thomas James Homes with an opportunity to select some interior finishes during early stages of construction! This house has a great address, great schools and great views. Sitting in the highly desirable Scottsdale neighborhood, this beautiful 5 bedroom, 5.5 bathroom is the definition of exceptional design. Wide plank wood flooring, decorative ceiling and wall treatments, including beams and wood paneling, impressive custom lighting, outstanding millwork, stone and tile accents, a gorgeous floor to ceiling fireplace, shaker cabinetry and a 4-car garage are just a sampling of the outstanding finishes going into the home. The large single story open concept floorplan is expertly crafted with a large interior courtyard leading to the home's entrance. Inside you'll find a large great room and luxury kitchen joined by a large quartz countertop island. The grand suite hosts a large his and hers walk-in closet and a spa like bathroom with a freestanding soaking tub and walk-in shower. The secondary bedrooms throughout the home have en-suite bathrooms. In addition to the bedrooms, you'll find ample added living space with a private office and a kitchen prep area adjoining a bonus room and a game room. Home will feature fully landscaped front and back yards with a pool and spa, providing great Arizona outdoor living space. Expected completion in Summer of 2025.

5215 E Lafayette Boulevard Phoenix, AZ 85018

$3,369,000
5 Beds
5.5 Baths
5,209 SqFt
Status Active
MLS # 6775398
Property Type Single Family Residence
Price Type --
Welcome to a rare mid-century modern retreat on a huge 36,440 sq. ft. lot updated to todays standards. This 4,305-square-foot main house, plus an additional 904-square-foot guest house, offers four bedrooms and 4.5 baths in the main home, brand new roof and high-efficiency AC units, both with a 10-year warranty. The open layout, floor-to-ceiling glass walls, and iconic architectural lines draw in natural light and frame stunning views of entire Camelback Mountain. The guest house is equipped with a full bath, kitchenette, and private entrance. The expansive backyard is ready for gatherings, with a bocce ball court, sand volleyball court, peaceful pavilion and firepit. Original Architecture done by George Kenneth Rubel.

13023 N 68th Street Scottsdale, AZ 85254

$3,350,000
5 Beds
5.5 Baths
5,071 SqFt
Status Active
MLS # 6752069
Property Type Single Family Residence
Price Type --
Unique opportunity to unlock the advantages of buying an in-progress home built by Thomas James Homes. When purchasing this home, you will benefit from preferred pricing, design personalization, a guaranteed delivery, and more. Estimated home completion Spring 2025. Great address, great schools! Sitting in the highly desirable Sweetwater Corridor in Central Scottsdale, this beautiful 5 bedroom, 5.5 bathroom modern farmhouse is the definition of exceptional design. Wide plank wood flooring, decorative ceiling and wall treatments, including beams and wood paneling, impressive custom lighting, outstanding millwork, stone and tile accents, a gorgeous floor to ceiling fireplace, shaker cabinetry and a 4-car garage are just a sampling of the outstanding finishes going into the home. The large single story open concept floorplan is expertly crafted for modern living with a large interior courtyard leading to the home's entrance. Inside you'll find a large great room and luxury kitchen joined by a large quartz countertop island. The grand suite hosts a large his and hers walk-in closet and a spa like bathroom with a freestanding soaking tub and walk-in shower. The secondary bedrooms throughout the home have en-suite bathrooms. In addition to the bedrooms, you'll find ample added living space with a private office, gym and a kitchen prep area adjoining the dining room and a bonus room. Home will feature fully landscaped front and back yards, providing great Arizona outdoor living space. This home is minutes from dining, shopping and more.

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