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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7161 E Rancho Vista Drive Unit 6001 Scottsdale, AZ 85251

$2,950,000

4 Beds

2 Baths

2,590 SqFt

Status Active

MLS # 6760219

Property Type Apartment

Price Type --

This is it. Welcome to the most incredible Optima Camelview condominium to ever be offered on the re-sale market. Designed & originally owned by the developer of this state of the art award winning community. Out of 688 units, this exquisite residence was their choice. Boasting 4 Bedrooms, 2 Baths, 2,590 sqft, ~1000 sqft of both covered and uncovered terrace space & the most breathtaking Camelback Mountain & McDowell Mountain Views. This unit features a fantastic open floor plan, endless floor-to-ceiling glass, 3 Patio/Terraces (perfect for relaxing & entertaining), a natural gas piped in bbq, fire pit and fire place, designer finishes through-out, automated blinds & so much more. The master suite is extremely spacious w/ a huge walk in closet (w/ it's own window!) & a very large bath.

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10040 E Happy Valley Road Unit 301 Scottsdale, AZ 85255

$2,950,000

4 Beds

4 Baths

4,632 SqFt

Status Active

MLS # 6764421

Property Type Single Family Residence

Price Type --

A rare opportunity awaits with IMMEDIATE GOLF MEMBERSHIP AT CLOSE OF ESCROW in the prestigious guard-gated community of Desert Highlands. The monthly HOA dues conveniently include member golf fees. This 4-bedroom home, including a detached casita, is perfectly nestled along the 4th fairway of the world-renowned Jack Nicklaus Signature Golf Course, offering breathtaking views of both the course and surrounding mountains. From the moment you arrive, the captivating curb appeal draws you in, and as you step through the door, you're welcomed by an atmosphere of elegance, tranquility, and seamless functionality. Private backyard retreat with pool/ spa, large covered patio, fire pit with seating is a perfect sanctuary for entertaining year round, providing the ultimate living experience.

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9027 N 82nd Street Scottsdale, AZ 85258

$2,950,000

5 Beds

3.5 Baths

4,364 SqFt

Status Active

MLS # 6781793

Property Type Single Family Residence

Price Type --

MUST SEE!!! McCormick Ranch culdesac home on oversized lot (one of the largest in entire neighborhood) that has been completely reimagined & remodeled with a modern floor plan. The single level home offers a 888 sq ft guest home with full kitchen, laundry, & 10 foot ceilings. The main home offers luxury, convenience, & designer touches. Large chefs kitchen with Thermador appliances, including bonus butlers pantry & butlers fridge, water filtration & water bottle filler, built in espresso maker, & oversized quartz waterfall island. Super sized utility room with double washer/dryer & custom lockers & storage. Primary suite with oversized shower, dual shower system & large soaker tub. Open great room with floor to ceiling wood burning fireplace, surround sound & smart features throughout

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5430 E Royal Palm Road Paradise Valley, AZ 85253

$2,950,000

5 Beds

3 Baths

2,733 SqFt

Status Active

MLS # 6779945

Property Type Single Family Residence

Price Type --

One acre + North/south lot close to Paradise Valley Country Club. 3 C Schools. Survey is included and located in document tab. House is a tear down and value is in the land. Property has all utilities - Sewer has been brought to corner of property. Great views- non-hillside lot. Do not walk property without permission. Buyer to do due diligence before writing offer. Owner/agent. Carry is possible with 25% down, 10% interest.

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6501 E Willow Springs Lane Cave Creek, AZ 85331

$2,950,000

4 Beds

3 Baths

3,400 SqFt

Status Active

MLS # 6703214

Property Type Single Family Residence

Price Type --

Welcome to this stunning contemporary Home on 4+ acres nestled amidst picturesque mountain ranges! A nearly new Home, this property offers both luxury and serenity in an Estate Homes area with no HOA restrictions. Collectors and hobbyists will love the 56' pull-through RV GARAGE and 4 large car bays. Modern finishes, abundant natural light, and thoughtful design elements extend throughout. FURNISHINGS are available separately. Enjoy indoor-outdoor living with a telescoping wall of glass in the Great room and a well-appointed kitchen with a waterfall quartz island. The Owner's suite is a luxurious retreat, featuring a spa-like bathroom and private patio. Outside, a large covered patio provides shade for entertaining, while the expansive land offers endless possibilities for customization. Would you add a guest casita, pool, spa, pickleball, an arena, or a barn? Relish the peaceful small-town lifestyle while still enjoying city water and paved roads. Nearby Cave Creek offers shopping, dining, and entertainment. Don't miss this extraordinary opportunity to make this property your own and start living the life you've always dreamed of.

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6936 E 1st Street Scottsdale, AZ 85251

$2,950,000

2 Beds

2.5 Baths

3,000 SqFt

Status Active

MLS # 6692878

Property Type Townhouse

Price Type --

Nestled in Arizona's most sought-after city, The NINES are a new collection of residences in Old Town Scottsdale brought to you by Two Hawks Design and Development. This custom home offers 3,000 SF of living space, 2 bed, 2.5 bath, 1 bonus room, a 2-car garage, and NO HOA FEES!!! Sleek modern architecture opens to three light-filled levels of refined interior luxury. This home offers expansive windows, a private backyard, a rooftop terrace, 2 additional outdoor patios, and bespoke details and finishes. This custom contemporary home invokes a simple refined style of living with unbeatable proximity to Scottsdale's premier lifestyle amenities. Discover fine dining, high end retail, and the Scottsdale Arts District just steps from your door.

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9290 E Thompson Peak Parkway Unit 113 Scottsdale, AZ 85255

$2,950,000

5 Beds

4.5 Baths

4,917 SqFt

Status Active

MLS # 6743770

Property Type Single Family Residence

Price Type --

Located within the premier guard-gated community of The Country Club at DC Ranch, this custom-built estate spans over 4,900 sqft of elegant, thoughtfully designed living space, offering a harmonious blend of modern sophistication and timeless charm. Upon entry, you are greeted by meticulously manicured landscaping and a grand entrance through custom iron double doors. This highly desirable, single level split floorplan seamlessly connects the expansive great room, adorned with soaring ceilings, a cozy fireplace, and views into the backyard. The chef's kitchen is equipped with stainless steel Thermador appliances including dual ovens and a 5-burner induction cooktop, a butcher block island, granite countertops, and large walk-in pantry. The luxurious primary suite features a spa-like bathroom with a soaking tub, dual vanities, a large tiled walk-in shower, and private access to the backyard. Additional amenities include pre-wired surround sound throughout the home, a den which could serve as a home theater, 3 bedrooms and 2 full bathrooms on the East side of the home, as well as a detached casita. The south facing backyard serves as your own private oasis, where a resort-style pool and spa are surrounded by lush landscaping and serene mountain and golf course views. The outdoor kitchen, fire pit, and expansive covered patio create an ideal setting for alfresco dining and entertaining year-round. With its prime location within the DC Ranch neighborhood, this residence offers a lifestyle of upscale amenities and convenience. The community offers 33 miles of manicured paths and trails, 47 community pocket parks, 2 community centers, and is located adjacent to the McDowell Sonoran Preserve and just 5 minutes north of the 101 Freeway in North Scottsdale. The property is also conveniently located within walking distance of Market Street's retail shops and restaurants. Membership to the Country Club at DC Ranch is available by separate application, approval, and membership fee.

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3562 E Presidio Circle Mesa, AZ 85213

$2,950,000

8 Beds

7 Baths

9,419 SqFt

Status Active Under Contract

MLS # 6772866

Property Type Single Family Residence

Price Type --

Welcome to this breathtaking 8 bedroom, 7 bathroom estate in the prestigious Montana Dorado neighborhood, spanning an impressive 9419 square feet. A dramatic double staircase and designer lighting greet you upon entry, setting the stage for the luxury that unfolds. To the left, a formal living room, and to the right, a dining room capable of hosting a 16-person table, showcase the home's grandeur. High-end tile guides you to an expansive family room with 22' ceilings and a striking floor-to-ceiling brick fireplace. The chef's dream kitchen features a large granite-topped center island, breakfast nook, and premium appliances including Sub-Zero and Wolf, complemented by a large butler's pantry and wine cooler. Pocket sliding glass doors open to a covered patio and a backyard oasis with a lengthy pool, slide, waterfall, swim-up bar, jacuzzi, and a step-down BBQ area, perfect for entertaining. Enjoy two glass fire pits, an in-ground trampoline, and a putting green, all with the privacy of no backyard neighbors. The home also boasts an office, workout studio with a dual head steam shower, game room with kitchenette, and two generous laundry rooms. Security is paramount with commercial steel exterior doors, hardwood 8' interior doors, and a home security system with cameras. The 4-6 car garage features EV Charging, built-in cabinets, epoxy floors, and a mini split room. An RV gate adds to the convenience. This home is a masterpiece of design and functionality, offering unparalleled luxury and comfort.

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9125 N Lava Bluff Trail Fountain Hills, AZ 85268

Open House

$2,950,000

4 Beds

4.5 Baths

4,253 SqFt

Status Active

MLS # 6632276

Property Type Single Family Residence

Price Type --

*** SPECTACULAR VIEWS*** of Four Peaks & surrounding mountains, this STUNNING FireRock home is ideally situated looking out over 2 golf course fairways & a LAKE! The ULTIMATE in soft Contemporary living w/a GREAT Room highlighted by 14ft beamed ceilings, a 2-way Stone Fireplace & floor to ceiling windows to enjoy EXTRAORDINARY VIEWS all around! Main house is approx. 3,851sf PLUS approx. 402sf in a GUEST CASITA. This den could be a media/theater room! This Chef's kitchen boasts Quartz countertops, Custom Designed Cabinetry, & a Wolf induction Cooktop & Oven. A gorgeous spacious Primary Suite which has dual vanities, a sep. shower & tub & a customized walk-in closet. EPITOME of RESORT STYLE LIVING w/ OUTSTANDING VIEWS, pool,spa & built-in BBQ! Beautiful Porcelain 24 x 48 tile floors have now replaced the carpeted secondary bedrooms and all porcelain 24 x 48 tile floors throughout refinished 6/24. Additionally, there is an anti-crack membrane to help prevent the porcelain tile floors cracking or breaking!

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30 Navajo Trail Sedona, AZ 86351

Open House

$2,949,900

5 Beds

4 Baths

4,760 SqFt

Status Active

MLS # 6753405

Property Type Single Family Residence

Price Type --

RED ROCK VIEWS!!! This 5 bedroom, 4 bathroom, plus Arizona Room, 1.3 acre property is located in a gated community and has been remodeled with all details in mind. Easy to navigate floor plan, vaulted ceilings with wood ceilings/beams, copper accents throughout (including sinks and tubs) and all on one level. HEATED 6 CAR GARAGE. Main house offers 4,295 sqft, Pecan Double Front Door with copper inserts, Living & Family Room each with gas hand cut stone Fireplaces, Formal & Informal Dining Room, Laundry Room in both Guest Suite and Primary Bedroom, 4 additional Bedrooms are split from Primary Bedroom, Bar with 2 Fridges & Wine Chiller and Gourmet Kitchen includes Subzero Refrigerator, Wolf Stove, Dishwasher, Island & Breakfast Bar. Garage features parking. for 4 Cars (heated) and Copper Garage Doors. Casita offers 457 sqft, Rooftop Deck with BREATHTAKING PANORAMIC VIEWS,Kitchen includes Subzero Refrigerator, Wolf Stove, Dishwasher, Island & Breakfast Bar. Garage features parking for 4 Cars and Copper Garage Doors. Casita offers 457 sqft, Rooftop Deck with BREATHTAKING PANORAMIC VIEWS, Kitchenette. Circular Driveway can take you secondary driveway to the back yard and Casita or to the Courtyard, both with Copper Gates. Driveway provides lots of parking options or hosting or family gatherings.

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12641 E Shadow Ridge Drive Scottsdale, AZ 85255

$2,944,900

4 Beds

4.5 Baths

4,190 SqFt

Status Active

MLS # 6717144

Property Type Single Family Residence

Price Type --

TO BE BUILT opportunity. Estimated completion 20 months from contract. New gated community by Camelot Homes... Featuring sweeping mountain vistas and pristine desert surroundings, Shadow Ridge is the ultimate Scottsdale sanctuary. Boasting spacious lots, this follow-up to our award-winning White Horse and Bronco communities combines bright, contemporary design with timeless indoor-outdoor appeal, all in a highly-desirable location a stones throw from Tom's Thumb trailhead. Price is not final. Additional options to be added later for final price.

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39347 N Old Stage Road Cave Creek, AZ 85331

$2,925,000

3 Beds

3.5 Baths

3,711 SqFt

Status Active

MLS # 6560312

Property Type Single Family Residence

Price Type --

Premier Offering, Pre-Construction. Nestled in the hillside above and just beyond Ranho Mañana, you'll find 'The Village at Go John Canyon' by Del Rey Development. A hidden gem, a secluded enclave of fine custom homes. Each estate parcel is over 4.35 acres and borders the Desert Foothills Land Trust with direct, private trail access to the Cave Creek Regional Park. Here you'll find pure paradise with over 3000 acres of hiking, mountain biking and horseback riding. Enhanced by nature, each select residence affords unparalleled views and total privacy in a peaceful mountain paradise. Del Rey offers stylish architecture and each home is delivered complete with heated pool and landscape.

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