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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4817 W Stargazer Place Laveen, AZ 85339

$609,995

3 Beds

3 Baths

2,510 SqFt

Status Active

MLS # 6684076

Property Type Single Family Residence

Price Type --

The single-story Dominic plan offers an open, inviting layout and ample living space. At the heart of the home is a spacious great room that flows into an impressive gourmet kitchen with a center island, quartz counter tops, dual pantries and a generous breakfast nook. A luxurious primary suite showcases an immense walk-in closet and a private bath with Deluxe walk-in shower, a covered patio invites relaxation, a study and a teen room, and a third side turn garage bay.

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4816 W Stargazer Place Laveen, AZ 85339

$609,995

4 Beds

3 Baths

2,630 SqFt

Status Active

MLS # 6691847

Property Type Single Family Residence

Price Type --

An inviting covered porch welcomes guests to the charming Pomona plan. A spacious great room is at the heart of the open layout, adjacent to a roomy nook and an impressive gourmet kitchen with a walk-in pantry and center island. This home offers a study.. The lavish primary suite offers a generous walk-in closet and a private bath with double sinks and deluxe tub and shower. A convenient laundry and covered patio are also included.

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10430 S 48th Glen Laveen, AZ 85339

$609,995

3 Beds

2.5 Baths

2,390 SqFt

Status Active

MLS # 6704814

Property Type Single Family Residence

Price Type --

The Deacon plan includes an attached RV garage, plus two tandem garage bays! Inside, a well-appointed gourmet kitchen with a walk-in pantry, quartz counters, and Shaker cabinets is flanked by a great room and a dining room with covered patio access. You'll also appreciate an elegant primary suite with a private deluxe bathroom with seperate drop in tub bathroom and ample walk-in closet space. A mudroom, a convenient laundry and a flex room will complete the plan.

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10434 S 48th Glen Laveen, AZ 85339

$609,995

4 Beds

3 Baths

2,630 SqFt

Status Active

MLS # 6719435

Property Type Single Family Residence

Price Type --

An inviting covered porch welcomes guests to the charming Pomona plan. A spacious great room is at the heart of the open layout, adjacent to a roomy nook and an impressive Gourmet Kitchen with 42'' white cabinets, quartz counters, matte black fixtures throughout, a walk-in pantry, center island, and 10' ceilings. There is stone tile throughout, with carpeted bedrooms. This home will be built with a study. The lavish primary suite offers a generous walk-in closet, private bath #2 w/double sinks, deluxe walk-in shower with rain. A convenient laundry room, tankless water heater, covered patio, and 8' garage doors, are also included.

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4829 W Stargazer Place Laveen, AZ 85339

$609,995

3 Beds

2.5 Baths

2,390 SqFt

Status Active

MLS # 6720292

Property Type Single Family Residence

Price Type --

The Deacon plan includes an attached RV garage, plus two tandem garage bays! Inside, a well-appointed gourmet kitchen with a walk-in pantry, quartz counters and shaker style cabinets is flanked by a great room and a dining room with covered patio access including a center meet door. You'll also appreciate an elegant primary suite with a private deluxe bathroom with oversized walk-in shower and ample walk-in closet space. A mudroom, a convenient laundry and a flex room will complete the plan.

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23942 N 171st Drive Surprise, AZ 85387

$609,995

4 Beds

3 Baths

2,630 SqFt

Status Active

MLS # 6645243

Property Type Single Family Residence

Price Type --

Welcome to Estates at Asante , a beautiful community with surrounding views. Look no further as this community offers only single-story homes. Step inside and you'll be greeted by the popular spacious Pomona floor plan. Very airy, open and bright. Perfect for entertaining with he multi slide off the great room and outdoor patio to bring outdoor living inside .Kitchen island awaits the family chef to enjoy the amazing kitchen island and abundance of cabinets. Set up 4 bedrooms, 3 bath, study and 3 car garage. Your dream home is here.

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1865 S 231st Lane Buckeye, AZ 85326

$609,995

5 Beds

3 Baths

3,112 SqFt

Status Active Under Contract

MLS # 6773421

Property Type Single Family Residence

Price Type --

Spectacular and spacious 2-story home in Sundance of Buckeye. Homes sits on one of the largest lots in the neighborhood. Completely remodeled with tons of upgrades. OWNED 42-panel solar system that saves $$$ on electric bills. The home offers ultimate privacy with no rear neighbors due to the common area behind the lot. With low property taxes and HOA fees, this luxurious home is also cost-effective. See the list of upgrades in the docs tab...TOO MANY to list here. Don't miss out on this extraordinary property that blends luxury, modern amenities, and functionality in a peaceful, private setting. Don't miss this one!

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37735 W Padilla Street Maricopa, AZ 85138

$609,990

4 Beds

3 Baths

2,756 SqFt

Status Active

MLS # 6762778

Property Type Single Family Residence

Price Type --

Move in FAST to this completed home! Say hello to luxury, Maricopa! This beautiful Jerome floorplan features an expansive great room with 10ft ceiling and a 15ft multi slider allowing for indoor outdoor living. The stunning kitchen is appointed with stacked cabinetry, matte black hardware, gas stove top, and double ovens! Relax in your Primary with Ultra Spa Shower and large walk-in closet. Your FIVE CAR GARAGE is perfect to store everything! With 8,750 sq ft homesites, come see why K. Hovnanian is the First Name in Lasting Value! ^^Up to 6% of Base Price can be applied towards closing cost and/or short-long term interest rate buydowns when choosing our preferred Lender. Additional eligibility and limited time restrictions apply.

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3936 E Terrel Street San Tan Valley, AZ 85143

$609,990

4 Beds

3 Baths

2,175 SqFt

Status Active

MLS # 6778908

Property Type Single Family Residence

Price Type --

This home has it all with room for all of your toys! Popular Wayfarer plan features it's own RV garage. This home is situated in the amenity rich community of Bella Vista Farms. Residents enjoy an amenity-rich lifestyle with exclusive access to an onsite swimming pool, picnic area, splash park, playground, basketball court, volleyball court and greenbelt. The local area is host to the San Tan Regional Park, where locals enjoy biking, hiking, horseback riding and more. A public report is available on the Arizona Department of Real Estate website.

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16683 W Saguaro Park Lane Surprise, AZ 85387

$609,990

4 Beds

3 Baths

2,605 SqFt

Status Active

MLS # 6745142

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.'' Discover the sophistication of the Coventry floorplan, offering 4 bedrooms, 3 baths, and an additional kitchen with living space. Noteworthy structural details include a step-free shower, 8' interior doors, and a spacious 3-car garage. The home is further enhanced with built-in appliances, quartz kitchen countertops, a gas-ready kitchen, a BBQ-ready backyard, and a laundry area equipped for a gas dryer.

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5317 W Rainwater Drive Laveen, AZ 85339

$609,990

5 Beds

3.5 Baths

3,550 SqFt

Status Active

MLS # 6769244

Property Type Single Family Residence

Price Type --

MLS#6769244 January Completion! Discover The Turquoise at Tierra Montana Encore, a spacious two-story home that greets you with a charming front porch entry. Upon entering, you're welcomed by a light-filled foyer that leads to a versatile study. Entertain in the formal dining room, then flow seamlessly into the open kitchen, casual dining area, and gathering room. The private owner's suite offers a luxurious retreat with a spa-like bath and a large walk-in closet. Upstairs, you'll find four additional bedrooms, two full baths, and a generous loft, perfect for family living or recreation. Structural options include: tub at owners bath, garage service door, paver front porch, laundry room sink.

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37630 W Padilla Street Maricopa, AZ 85138

$609,990

4 Beds

3 Baths

2,765 SqFt

Status Active

MLS # 6749647

Property Type Single Family Residence

Price Type --

Move in FAST to this completed home! Say hello to luxury, Maricopa! The captivating Jerome floorplan features an expansive great room, 15ft multi slider, home office, and stunning kitchen appointed with stacked cabinetry, gas stove top, double ovens, and matte black hardware! Relax in your freestanding tub, host on the patio, or take out the toys from your FIVE CAR GARAGE! With 10ft ceilings, 8ft doors, and 8,750 sq ft homesites, come see why K. Hovnanian is the First Name in Lasting Value! ^^^Up to 6% of Base Price can be applied towards closing cost and/or short-long term interest rate buydowns when choosing our preferred Lender. Additional eligibility and limited time restrictions apply.

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