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.

Click Here to See What Your Home is Worth

Listing types.

For Sale

For Rent

Land

Multifamily

Commercial

Location Search Nearby

BedsAny1+2+3+4+5+6+

BathsAny1+2+3+4+5+6+

Price MinAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Price MaxAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Advanced Options

Property TypeAnyApartmentManufactured HomeSingle Family ResidenceTownhouseTwin Home

School District

Address, MLS# or Keyword

Home SizeAny600 ft2800 ft21,000 ft21,200 ft21,400 ft21,600 ft21,800 ft22,000 ft22,200 ft22,400 ft22,600 ft22,800 ft23,000 ft23,500 ft24,000 ft24,500 ft25,000 ft25,500 ft26,000 ft2

YearAny2024+2023+2022+2021+2020+2019+2018+2017+2016+2015+2014+2013+2012+2011+2010+2009+2008+2007+2006+2005+2004+2003+2002+2001+2000+1999+1998+1997+1996+1995+1994+1993+1992+1991+1990+1980+1970+1960+1950+1940+1930+

Distressed

Open House

Location Search Nearby

BedsAny1+2+3+4+5+6+

BathsAny1+2+3+4+5+6+

Price MinAny$500$600$700$800$900$1,000$1,100$1,200$1,300$1,500$1,600$1,700$1,800$1,900$2,000$2,250$2,500$2,750$3,000$3,250$3,500$3,750$4,000$4,500$5,000$5,500$6,000$6,500$7,000$7,500$8,000$8,500$9,000$9,500$10,000

Price MaxAny$500$600$700$800$900$1,000$1,100$1,200$1,300$1,500$1,600$1,700$1,800$1,900$2,000$2,250$2,500$2,750$3,000$3,250$3,500$3,750$4,000$4,500$5,000$5,500$6,000$6,500$7,000$7,500$8,000$8,500$9,000$9,500$10,000

Advanced Options

Property TypeAnyApartmentManufactured HomeSingle Family ResidenceTownhouseTwin Home

School District

Address, MLS# or Keyword

Home SizeAny600 ft2800 ft21,000 ft21,200 ft21,400 ft21,600 ft21,800 ft22,000 ft22,200 ft22,400 ft22,600 ft22,800 ft23,000 ft23,500 ft24,000 ft24,500 ft25,000 ft25,500 ft26,000 ft2

YearAny2024+2023+2022+2021+2020+2019+2018+2017+2016+2015+2014+2013+2012+2011+2010+2009+2008+2007+2006+2005+2004+2003+2002+2001+2000+1999+1998+1997+1996+1995+1994+1993+1992+1991+1990+1980+1970+1960+1950+1940+1930+

Location Search Nearby

Lot SizeAny1+ Acres2+ Acres3+ Acres4+ Acres5+ Acres6+ Acres7+ Acres8+ Acres9+ Acres10+ Acres20+ Acres30+ Acres40+ Acres50+ Acres

Price MinAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Price MaxAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Advanced Options

Neighborhood

Address, MLS# or Keyword

Location Search Nearby

Price MinAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Price MaxAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Advanced Options

School District

Address, MLS# or Keyword

YearAny2024+2023+2022+2021+2020+2019+2018+2017+2016+2015+2014+2013+2012+2011+2010+2009+2008+2007+2006+2005+2004+2003+2002+2001+2000+1999+1998+1997+1996+1995+1994+1993+1992+1991+1990+1980+1970+1960+1950+1940+1930+

Location Search Nearby

Lot SizeAny1+ Acres2+ Acres3+ Acres4+ Acres5+ Acres6+ Acres7+ Acres8+ Acres9+ Acres10+ Acres20+ Acres30+ Acres40+ Acres50+ Acres

Price MinAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Price MaxAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Advanced Options

Address, MLS# or Keyword

YearAny2024+2023+2022+2021+2020+2019+2018+2017+2016+2015+2014+2013+2012+2011+2010+2009+2008+2007+2006+2005+2004+2003+2002+2001+2000+1999+1998+1997+1996+1995+1994+1993+1992+1991+1990+1980+1970+1960+1950+1940+1930+

View As: Thumbnails List

Sort by: Select Price, Low to High Price, High to Low Newer Listings First Older Listings First Open House Date

32185 N 129 Avenue Peoria, AZ 85383

$635,000

4 Beds

3 Baths

2,509 SqFt

Status Active Under Contract

MLS # 6779598

Property Type Single Family Residence

Price Type --

Shea homes former Hope model with pre-paid solar is ready for you to make it ''Home!'' This 2,509 sq/ft home features the ''kitchen-centric'' floorplan that was designed for entertaining to the max! This lightly lived in, 4 bedrooms and 3 full bath home has designer touches including wood flooring, custom built ins, surround sound inside/out, ceiling fans, and window treatments throughout. The chef's kitchen features SS appliances & hood, pass through bar and massive quartz island with room to seat all your guests inside and out! Step outside to the professionally landscaped backyard with stunning mountain views and built in BBQ and fireplace. Please see attached options list for details on all upgrades. Rated the top master planned community several years in a row, Vistancia Village offers an unparallel lifestyle that includes pickleball, tennis, golf, 3 swimming pools, trails, parks, clubs and classes for all interests and a large offering of community events! Perfectly situated off the 303 freeway, enjoy easy access to shopping and dining!

View Property

16525 W Sheridan Street Goodyear, AZ 85395

$635,000

2 Beds

2.5 Baths

2,066 SqFt

Status Active Under Contract

MLS # 6745341

Property Type Single Family Residence

Price Type --

Paid off solar! Beautiful, very well maintained home in Pebble Creek golf Course community! New top of the line AC unit with a 10 year warranty. Enjoy low maintenance backyard, with brand new pavers and turf! Corner lot with great curb appeal, epoxy floors in 2.5 car garage. Bonus versatile room which can be used as office/ den or spare room. Two large master suites on opposite ends of house. Enjoy all this beautiful gated community has to offer, including pools, club house, restaurants/bar, coffee shop etc.

View Property

10034 E Pantera Avenue Mesa, AZ 85212

New

$635,000

3 Beds

2 Baths

2,417 SqFt

Status Active

MLS # 6783523

Property Type Single Family Residence

Price Type --

Don't miss out on the chance to own this impeccably maintained, modern single-story home nestled in the sought-after Gilbert School District. With three bedrooms and a versatile den or office featuring stylish barn doors, this home seamlessly combines elegance and practicality. Step into the outdoor haven, complete with a pristine pool and spa, complemented by a generously sized covered patio—perfect for leisure and entertaining. Inside, the 10-foot ceilings create an airy atmosphere, highlighting a meticulously remodeled kitchen that exudes contemporary charm. The primary suite, strategically situated for privacy, boasts an expansive bay window, separate tub and shower, and dual sinks.

View Property

14200 W Village Parkway Unit 2128 Litchfield Park, AZ 85340

$635,000

2 Beds

2 Baths

1,896 SqFt

Status Active

MLS # 6744120

Property Type Townhouse

Price Type --

Nestled within the impressive gated Wigwam Golf Community, this single-story townhome is a haven of elegance and comfort. With two spacious bedrooms, a versatile den, and a thoughtful layout, this home offers a unique blend of style and functionality. Upon entering, you are greeted by a warm, inviting living area that flows seamlessly into a well-appointed kitchen. The kitchen, equipped with modern appliances and ample counter space, is perfect for both casual meals and entertaining guests. The two bedrooms offer a tranquil retreat, each spacious and filled with natural light. The master suite is particularly impressive, featuring ample storage and a luxurious bathroom that promises relaxation. Adding to the home's appeal is a versatile den, which could serve as a home office... a library, or a cozy entertainment room. This additional space provides flexibility to cater to your lifestyle needs. Outside, the property is equally inspiring. The meticulously maintained landscape adds to the home's curb appeal, while the community's amenities, including the renowned Wigwam Golf Course, promise a lifestyle of leisure and convenience. This townhome is more than just a place to live, it's a sanctuary where comfort meets elegance, making it a perfect place to call home.

View Property

2209 E Windsor Avenue Phoenix, AZ 85006

$635,000

3 Beds

3 Baths

1,913 SqFt

Status Active

MLS # 6723859

Property Type Single Family Residence

Price Type --

What a GEM! Comfort meets modern elegance in this beautiful home nestled on a large lot. Featuring a manicured landscape w/natural grass & mature trees, it offers a tranquil setting. Discover a desirable open layout paired with chic light fixtures, neutral palette, & tile flooring w/plush carpet in bedrooms. The kitchen boasts SS appliances, quartz counters, subway tile backsplash, white shaker cabinets, and an island w/breakfast bar. Two main bedrooms! One includes French doors to the back, and both feature a barn door that opens to the ensuite with dual sinks & a walk-in closet. You'll LOVE the peaceful backyard! A covered patio, artificial turf, elevated paver patio, & a hot tub complete the picture. PLUS! This value has a 2-car garage & 2 RV gates on both sides of the house. Just WOW!

View Property

22353 N 99th Lane Peoria, AZ 85383

$635,000

3 Beds

2 Baths

1,898 SqFt

Status Active

MLS # 6728823

Property Type Single Family Residence

Price Type --

This METICULOUSLY CARED FOR and IMMACULATELY KEPT home with GREAT ROOM floor plan will PROVIDE a SPECIAL PLACE for COMFORT and DAILY LIVING but ALSO a PLACE for ENJOYMENT and ENTERTAINMENT*You have YOUR OWN PRIVATE POOL with GREENBELT VIEWS rather than back yard neighbors, as well as the DESIRABLE MEADOWS' COMMUNITY PICKLE BALL COURTS, POOL, SPA, and SPRAWLING PARK only a few doors away*Your KITCHEN has OVERSIZED ISLAND, GAS STOVE, R/O, refrigerator included, and PANTRY*CONVENIENT BUILT IN STUDY CENTER*LARGE OWNER SUITE is split and you can APPRECIATE the added 4-ft extension*This NEWER BUILT HOME has updated CEILING FANS and PENDANT lighting, NEST thermostat, BLINK exterior CAMERAS, and ORANGE and LEMON tree planted in 2023*COME BY and SEE why YOU WILL WANT TO CALL THIS PLACE YOUR ''HOME

View Property

6225 E Carolina Drive Scottsdale, AZ 85254

$635,000

3 Beds

2 Baths

1,415 SqFt

Status Active

MLS # 6733040

Property Type Single Family Residence

Price Type --

Welcome to this charming single-story home boasting fresh interior and exterior paint that accentuates its bright and airy ambiance. The kitchen features stainless steel appliances including a range and dishwasher, complemented by beautifully painted cabinets and quartz countertops that provide ample workspace. With three bedrooms and two baths, this home offers both comfort and functionality. Enjoy entertaining in the spacious living areas complete with a cozy fireplace and luxury vinyl plank flooring throughout. Outside, a fenced pool awaits in the private backyard, perfect for relaxing or hosting gatherings. This home combines modern upgrades with classic charm, making it an ideal retreat for any homeowner.

View Property

3993 W Talc Drive San Tan Valley, AZ 85144

$635,000

4 Beds

3.5 Baths

2,900 SqFt

Status Active

MLS # 6745758

Property Type Single Family Residence

Price Type --

MOVE-IN READY, better than a new build or spec home. This 4 bed, 3.5 bath with 4 car garage dream home is waiting for you! Custom features include tile plank flooring throughout, kitchen with backsplash, custom cabinets with pull-out drawers, quartzite countertops, gas chef range and beverage fridge. Master suite with walk-in closet, master bathroom features a large walk-in shower with custom tile surround, free-standing tub, vessel sinks with his and her vanities and faucets. All upgrades done by an interior designer. Large bedrooms and one w/private bath, walk-in closet. Bedrooms are split from the master with a large bonus room. Sliding wall of glass from great room that leads out to the extended patio. Private backyard with no two stories behind you.

View Property

20750 N 87th Street Unit 2139 Scottsdale, AZ 85255

$635,000

2 Beds

2 Baths

1,356 SqFt

Status Active

MLS # 6743827

Property Type Townhouse

Price Type --

Amazing townhome near McDowell Mountain Preserve! Welcome to this beautifully updated two-bedroom, two-bath townhome featuring a two-car garage. The living room boasts a beautiful fireplace with elegant stone accents, creating a warm and inviting atmosphere. Step outside to a large, open patio, perfect for relaxing or entertaining. The modern kitchen is a chef's dream, equipped with stainless steel appliances, stunning granite countertops, and a convenient breakfast bar. Enjoy meals in the adjacent formal dining area, enhanced with updated fixtures that add a touch of sophistication. The large master bedroom offers a private balcony, providing a serene retreat with views of the surrounding area. Inside laundry adds convenience, making daily chores a breeze. Located just steps away from the McDowell Mountain Preserve, and minutes from Scottsdale's shopping and dining, this townhome offers easy access to outdoor adventures and breathtaking scenery. Experience the perfect blend of comfort, style, and location in this must-see home!

View Property

15492 W Campbell Avenue Goodyear, AZ 85395

$635,000

5 Beds

3.5 Baths

3,900 SqFt

Status Active

MLS # 6755869

Property Type Single Family Residence

Price Type --

Basement homes are not synonymous with Arizona. Welcome to Palm Valley Living at it's finest! This well appointed home has 5 bedrooms 3.5 bathrooms with 3900 sq ft for your enjoyment. 3 car garage and a neutral pallet makes this one a winner!

View Property

12122 N Finch Drive Fountain Hills, AZ 85268

$635,000

3 Beds

2 Baths

1,794 SqFt

Status Active

MLS # 6753161

Property Type Single Family Residence

Price Type --

Super clean and well maintained 3 bedroom, 2 bath patio home in the Morningside at Lakeside community.You will love the bonus room off Primary Bedroom too. Home has newer windows, updated kitchen & bathrooms. Vaulted ceilings make it feel much larger than it is. Private fenced backyard with trees. Attached 2 car garage with new epoxy flooring & direct access to home. Polished Travertine tile throughout, No Carpet. Low maintenance yard and home. Perfect for lock and leave or full time residence. Close to the Fountain park, hiking trails, dog park, skate park. Community features a heated community pool, spa, ramada plus a small picnic park.

View Property

2618 N 68th Place Scottsdale, AZ 85257

$635,000

3 Beds

2 Baths

1,667 SqFt

Status Active

MLS # 6770473

Property Type Single Family Residence

Price Type --

Welcome to this charming and updated 3-bedroom, 2-bathroom home located in the desirable Inmar Terrace community in South Scottsdale. Updates include: New Kitchen and Bathroom cabinets/countertops. New kitchen appliances. New showers. New tile flooring through out, no carpet! New paint inside and outside and a remodeled backyard. With just under 1,700 square feet of living space, this home is perfect for a small family looking for both comfort and convenience. The spacious floor plan includes a bright living area, a modern kitchen, and well-sized bedrooms, making it an ideal space for both everyday living and entertaining. The property features a large carport, providing extra parking for your vehicles or guests. Located close to some of Scottsdale's best entertainment, shopping, and dining options, this home offers a perfect blend of suburban peace and urban accessibility

View Property