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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4901 W Hunter Trail San Tan Valley, AZ 85143

$566,090
5 Beds
3 Baths
2,926 SqFt
Status Active
MLS # 6778084
Property Type Single Family Residence
Price Type --
Elite community with a lot of amenities! The perfect blend of functionality comes to life. This stunning home boasts 5 bedrooms, 3 baths, bonus space, office and walk-in closets, ensuring that there's room for everyone. The island takes center stage, serving as a social hub where family and friends can gather. Whether you're preparing a gourmet meal or enjoying a family breakfast, the kitchen is designed to be a culinary haven. dark cabinets, granite counter tops with a generous amount of wood look tile! Stepping outside, the 3-panel sliding glass door offers an additional living space that seamlessly extends the indoor experience. Each of our homes is built with innovative, energy-efficient features designed to help you enjoy more savings, better health, real comfort and peace of mind.

11942 W Parkway Lane Avondale, AZ 85323

$565,995
4 Beds
3 Baths
2,570 SqFt
Status Active
MLS # 6741439
Property Type Single Family Residence
Price Type --
Discover this impressive Celeste home, ready for quick move-in! Included features: a covered entry; a spacious study; a gourmet kitchen boasting 42'' cabinets, quartz countertops, stainless-steel appliances, a center island and a generous walk-in pantry; an inviting nook with center-meet patio doors; an elegant great room; a secluded primary suite offering an oversized walk-in closet and a private bath with double sinks; three secondary bedrooms; two additional baths; a central laundry and a relaxing covered patio. This home also showcases dramatic 10' ceilings, wood laminate flooring, cultured marble bath countertops, ceiling fan prewiring and extra windows in select rooms, front yard landscaping and concrete pavers at the walkway and driveway.

12011 W Parkway Lane Avondale, AZ 85323

$565,995
4 Beds
3 Baths
2,570 SqFt
Status Active
MLS # 6741404
Property Type Single Family Residence
Price Type --
Explore this stunning Celeste home, ready for quick move-in on a homesite boasting driveway pavers and front yard landscaping. Included features: an inviting covered entry; a quiet study; a gourmet kitchen offering 42'' cabinets, quartz countertops, stainless-steel appliances, a double oven, a walk-in pantry and a center island; an open dining area; an immense great room boasting center-meet doors leading onto a relaxing covered patio; an impressive primary suite showcasing a large walk-in closet and a private bath with cultured marble countertops; a convenient laundry; a mudroom and a 3-car garage. This home also offers stone tile flooring, tray ceilings, additional windows and ceiling fan prewiring in select rooms as well as airy 10' ceilings throughout.

4010 S 178th Lane Goodyear, AZ 85338

$565,588
4 Beds
3.5 Baths
2,639 SqFt
Status Active
MLS # 6768888
Property Type Single Family Residence
Price Type --
Ready for quick move in! Welcome to the Juniper Floor Plan, a magnificent single-story haven meticulously designed to offer space, comfort, and versatility. Boasting an expansive 2639 square feet, this home provides a seamless fusion of elegance and practicality. Discover the allure of 4 beautifully appointed bedrooms, each offering a serene sanctuary for rest and rejuvenation. The Owners Suite stands out as a true retreat, featuring a walk-in closet that keeps your belongings organized and easily accessible. ALWAYS BUILT W/SPRAY FOAM INSULATION & TANKLESS WATER HEATER!!

13747 W Nogales Drive Sun City West, AZ 85375

$565,500
2 Beds
2 Baths
1,837 SqFt
Status Active
MLS # 6734640
Property Type Single Family Residence
Price Type --
Presenting the San Ysidro Model home, a masterpiece of elegance and refined taste, situated on a corner lot within the serene, gated community of Corte Bella. This home spans 1,837 sq ft and features two spacious bedrooms and two luxurious bathrooms,+ large den/office tailored for both enchanting entertainment and peaceful relaxation. The heart of this home offers a chef's dream kitchen, fully upgraded with stainless steel appliances, granite countertops, a center island, and an ample pantry. The primary suite offers a sanctuary-like experience with bay windows, modernized flooring, a large walk-in closet, and a private water closet with double sinks. The accompanying bedroom and bathroom continue the theme of luxury with updated fixtures, and new installations. Expansive connections between the great room, den/office with custom French doors, dining, and kitchen areas showcase the carefully selected neutral tile flooring throughout, reflecting a tastefully designed interior. This exceptional property is now available for sale, ready to fulfill your dream of sophisticated yet practical living.

10909 E Silvertree Drive Sun Lakes, AZ 85248

$565,444
2 Beds
2 Baths
1,833 SqFt
Status Active Under Contract
MLS # 6777341
Property Type Single Family Residence
Price Type --
Looking for a private, gated, community with access to 2 golf courses, 2 club houses, 3 community pools/spas, 2 restaurants, many pickle ball courts, and more? Well, look no further. This home has many updated features including, but not limited to, HVAC in 2024, updated kitchen with all new appliances, cabinets updated with paint, euro soft close hinges & hardware in 2023, Whole home salt free filter system in 2024, and updated plumbing fixtures in 2024. There's also a private front courtyard for relaxing as well as a covered patio in the private backyard. There are ceiling fans in the great room, both bedrooms and the breakfast nook off the kitchen. This home also has a two car garage and a golf cart garage. Stop by and see if this is just the home you've been looking for. Thank you.

30133 N 172nd Street Rio Verde, AZ 85263

$565,000
3 Beds
2 Baths
1,637 SqFt
Status Active Under Contract
MLS # 6771208
Property Type Single Family Residence
Price Type --
Stunning views of Four Peaks, Weaver's Needle, and the Superstitions are the backdrop of this 1.059 acre property. The 3 bedroom, 2 bathroom split floor plan is move-in ready, lightly lived-in, and only 2 years old. The home is centered around a spacious great room, offers 9+ ft ceilings, and energy-efficient dual-pane low-e windows. The kitchen is beautifully designed with quartz countertops, upgraded cabinetry, and tile backsplash. Upgrades include 12ft sliding doors, spray foam insulation, upgraded doors throughout, enhanced desert landscaping, custom paver patio, retaining wall, and gutters. Step outside to a covered patio and enjoy the beautiful scenery. Ask about the guaranteed water through EPCOR's Rio Verde Foothills Standpipe project.

23074 E Desert Spoon Drive Queen Creek, AZ 85142

$565,000
3 Beds
2 Baths
2,381 SqFt
Status Active
MLS # 6769675
Property Type Single Family Residence
Price Type --
Discover this exceptional single-level residence featuring 3 bedrooms plus a versatile den, ideally situated just a block away from the community pool, splash pad, and parks perfect for leisure and entertainment. Upon entering, you are welcomed by an inviting open floor plan that harmoniously connects the living, dining, and kitchen areas, providing an ideal space for both entertaining and everyday living. The bright living area is enhanced by large windows and a sliding glass door that floods the space with natural light. The modern kitchen is designed for both functionality and style, showcasing sleek countertops, ample cabinetry, and a central island that serves as a perfect gathering spot for casual meals or socializing with guests. Step outside to a blank canvas backyard, offering endless possibilities for creating your personal outdoor retreat. This space is perfect for entertaining, gardening, or simply enjoying the tranquility of your surroundings. Seize this opportunity to reside in the highly sought-after Meridian community, where convenience meets elegance. Don't miss the potential this beautiful home has to offer!

1749 Silver Spur Circle Clarkdale, AZ 86324

$565,000
2 Beds
2 Baths
1,715 SqFt
Status Active
MLS # 6767718
Property Type Single Family Residence
Price Type --
Discover your dream home with unparalleled charm and comfort! This property offers a unique blend of elegance and privacy, perfectly situated on an expansive 1/2 acre lot for ultimate seclusion with the option for an additional 1/2 acre. Imagine cozy evenings by the fireplace, and waking up every day to a magnificent view of the Red Rocks that never fails to inspire. One of this property's unique highlight is an exquisite imported, hand-peeled and stained log ramada with elegant pavers and a six-person hot tub, perfect for outdoor relaxation or entertaining guests. Whether you're seeking tranquility or a place to entertain, this home provides the perfect backdrop for all your aspirations. Step through a charming front door courtyard, adorned with a decorative steel gate, setting the scene for a warm welcome. Beyond the front, discover a fully gated fenced backyard offering privacy. Embrace the sophistication of 9 ft ceilings and charming bullnose corners throughout plus the elegance of ceramic flooring, with cozy carpeted bedrooms for ultimate comfort. Gather around the stunning Southwestern-style glass-enclosed propane fireplace, complete with a mantel, hearth, and beautifully crafted faux logs that evoke a cozy atmosphere. Adjacent to the hearth, a full-length sitting bench offers a perfect spot to relax and enjoy the warmth. This exquisite property boasts a kitchen that is a culinary enthusiast's delight, featuring ample counter space, an abundance of cabinets, and a convenient breakfast bar. A spacious pantry complements the setup, ensuring you have all the storage you need. Enjoy leisurely breakfasts in the adjoining breakfast nook, a perfect spot for morning routines. The heart of the home shines with tubular skylights in the kitchen, laundry, and oversized tiled walk-in shower. Split bedroom plan that promises both privacy and comfort. Enjoy the seamless indoor-outdoor flow, with glass patio doors leading off both the dining room and master bedroom onto spacious patios. Peace of mind with newer appliances, including a dishwasher, hot water heater, washer, and dryer, ensuring modern comfort and convenience. The property boasts a fully functional sprinkler system equipped with new valves, a system water shut off, and a sprinkler control panel for easy plant maintenance. Additionally, enjoy peace of mind with new garage door springs enhancing safety and reliability. A custom designed elevated lot to not only enhance the views but to accommodate runoff and prevent erosion. This unique home is surrounded by hand-placed native rock lining the front and back ditches, offering a distinct and harmonious landscape design. The rip-rapped berms elegantly frame the remaining sides, enhancing both functionality and aesthetics. Additionally, the property features attractive rock-lined drainage swails, providing efficient water management while adding to the overall charm. This property is a perfect blend of thoughtful design and natural allure. Thoughtfully designed exteriors featuring a delightful wraparound sidewalk leading to one porch, complemented by hand-placed steppingstones guiding you to the opposite porch. This property boasts an oversized 2-car garage featuring pull-down concealed wooden steps for full attic access, offering ample storage and convenience. The approach to this home is nothing short of impressive, featuring a commercial-grade compacted gravel path that seamlessly transitions into a wide concrete driveway.

4517 W Bluefield Avenue Glendale, AZ 85308

$565,000
3 Beds
2 Baths
2,080 SqFt
Status Active
MLS # 6704844
Property Type Single Family Residence
Price Type --
Gorgeous home with a pool & golf course views! Boasting real wood flooring throughout & vaulted ceilings. Bright, open kitchen with white cabinetry, granite countertops, stainless steel appliances, island, & RO System. Enjoy privacy with a split floor plan. 2 newly remodeled with updated vanities & modern showers/tubs. Backyard oasis offers a sparkling pool with new pump, covered patio, green space, & pavers. Also featured, a 2-car garage, new water heater, & a new washer & dryer. Seated on a lot backing the golf course with view fencing, you'll love living in this ulta-private community with amenities like a pool, spa, clubhouse, and convenient access to Tanger Outlets, Westgate Entertainment District, State Farm Stadium, shopping, dining, and more - the options are endless!

2814 S Fossil Creek Lane Flagstaff, AZ 86001

$565,000
2 Beds
2 Baths
1,710 SqFt
Status Active
MLS # 6739279
Property Type Single Family Residence
Price Type --
Welcome home! This bright and cheery 3-bedroom, 2.5-bathroom home is fully furnished, boasting a thoughtful and cozi layout. The sunny living room welcomes you as you enter the home, with a comfortably sized powder room conveniently tucked away beneath the staircase. The dining room seamlessly combines with the kitchen, which features stainless steel appliances and a convenient breakfast bar for casual dining... The ample primary suite offers a peaceful escape with its well-appointed design-including plenty of room for a work station, treadmill or reading nook. A great feature of this home is the 2-car tandem garage, providing substantial space for your vehicles and additional storage needs. The backyard is surrounded by privacy fencing, complete with a paved patio area - perfect for ent

5497 S Joshua Tree Lane Gilbert, AZ 85298

$565,000
4 Beds
3 Baths
1,840 SqFt
Status Active
MLS # 6746360
Property Type Single Family Residence
Price Type --
Discover this impeccably maintained 4-bedroom, 3-bathroom home with an inviting open concept floor plan, nestled in the prestigious Bridge community. The updated kitchen features a natural gas oven/stove, a new microwave, a dishwasher, and a triple filtration system. This well-designed space seamlessly transitions into the dining and living areas, perfect for modern living. The extended garage offers ample space for large vehicles or additional storage. Professionally installed pavers adorn the side of the home, leading to a beautifully landscaped backyard. Enjoy a versatile outdoor area with a 16' x 2.5' planting bed, a 5' x 11' paved storage area, a covered patio, and a built-in gas hookup for your grill. Additional highlights include an owned water softener, stylish floating flooring in the master bedroom, a custom-designed screen door at the front entry, and a security system ready for reactivation. Experience the exceptional features of this home firsthand.

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