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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860 E Paradise Lane Phoenix, AZ 85022

$559,900
3 Beds
2 Baths
1,786 SqFt
Status Active
MLS # 6741464
Property Type Single Family Residence
Price Type --
*HOME INTERIOR IS BEING PROFESSIONALLY PATCHED AND PAINTED IN NEXT 2 VWEEKS!*Exceptional value on this turn-key, fully remodeled desert ranch home. Greentrails is special enclave in Moon Valley that offers outdoor enthusiasts walking/jogging paths and access to mountain trails right inside the community, along with a private park, playground and sprawling greenbelt just steps away. This home captures the essence of AZ living with gorgeous surroundings, remodeled interiors and charming outdoor spaces, located on a cul-de-sac lot. Exceptional curb appeal with easy-care landscaping, slump block exterior and entry courtyard. The fresh remodel brings luxe finishes and modern appeal, in an open floorplan. Wood plank tile flooring is paired with neutral paint throughout. The updated kitchen features white shaker-style cabinetry, stainless steel appliances, granite counters and a breakfast bar. This home features an open floorplan and no interior steps. Retreat to the split primary suite which opens to the rear patio and features a large walk-in closet and remodeled private bath with fully-tiled shower, double sink vanity, dual flush toilet and tile flooring. The hall bath is also fully-remodeled. All bedrooms have closet organizing systems and ceiling fans. Whether you are dipping into the renovated pool ('20) or entertaining under the spacious covered patio, you'll find that the rear yard offers opportunities for year-round enjoyment. The pie-shaped lot provides room for potentially adding a casita, which is now legal in Phoenix. A side parking slab leads to an RV gate and gravel parking area beyond. Home is located in the Paradise Valley school district and is nearby many local staples/destinations along with the best culinary, retail, and entertainment epicenters.

10129 S 43rd Lane Laveen, AZ 85339

$559,900
4 Beds
2.5 Baths
2,539 SqFt
Status Active
MLS # 6752936
Property Type Single Family Residence
Price Type --
Custom home in the gated community of Vaquero Estates with mountain views & breathtaking sunsets! Light & bright open concept floor plan features soaring ceilings, well-maintained tile flooring & carpeting in all the right places. The chef's kitchen boasts granite counters, an island with a breakfast bar, stainless steel appliances, reverse osmosis, & opens to the family room - ideal for entertaining. Primary retreat is split from guest bedrooms for ultimate privacy. Impressive bath has dual sinks, free standing tub, & walk in shower. Enjoy the AZ heat in your incredible backyard with a large covered patio (35' x 12'), turf, & mature landscaping. Also featured, a 2-car garage. You'll love this private community with an amazing central location minutes to schools, shopping, dining, & more!

7032 S 38 Place Phoenix, AZ 85042

$559,900
3 Beds
2 Baths
1,766 SqFt
Status Active
MLS # 6757238
Property Type Single Family Residence
Price Type --
Here's an opportunity to live in the charming, gated golf course community of The Pines at the Raven. Breathtaking golf course & mountain views. This single level home with 3 bedrooms, 2 bathrooms with a desirable split floorplan, is located in a cul-de-sac backing to beautiful golf course. Chef's kitchen is open to the family room. Ceramic tile in the entire house. Fireplace in the great room and much more! Community Amenities Include Pool/Spa. Close to Restaurants, Shops, Golf, freeways and Airport,

22510 E Via Las Brisas -- Queen Creek, AZ 85142

$559,900
4 Beds
2 Baths
2,202 SqFt
Status Active
MLS # 6775767
Property Type Single Family Residence
Price Type --
The search is finally over! This stunning 4-bedroom, 2-bath residence features a 2-car garage, tasteful brick accents, and a welcoming front porch. Has both an office and team room. Discover a spacious great room with high ceilings, Brand new carpet and paint throughout. Kitchen comes with granite counters, abundant wood cabinetry with crown molding, pendant/recessed lighting, stainless steel appliances, a walk-in pantry, and an island with a breakfast bar for casual meals. You'll also find a cozy den ideal for an office or lounge. The primary bedroom offers plush carpeting, an ensuite with double vanities, a soaking tub, and a walk-in closet. Enjoy outdoor moments in the quaint backyard, showcasing a covered patio, pristine artificial turf, and a refreshing pool.

11520 E Kiva Avenue Mesa, AZ 85209

$559,900
2 Beds
2.5 Baths
1,993 SqFt
Status Active
MLS # 6776202
Property Type Single Family Residence
Price Type --
Welcome to the highly desirable Adult Community of Sunland Spring Village, where your retirement home becomes a reality! Discover this gorgeous home, boasting stone accents, a desert front yard, a 2-car plus a golf cart garage, and an inviting front patio. The lovely interior impresses you with a spacious living/dining room, vaulted ceilings, designer paint, a kitchen hutch, and wood-look tile flooring. Kitchen is fully equipped with ample counter space, panel lighting, wood cabinetry, and a breakfast nook with a bay window. The primary retreat has tray ceilings, plush carpeting, an immaculate ensuite with dual sinks, and a walk-in closet. Attached workshop for your creativity! Unwind under the covered patio in the tranquil backyard with artificial turf and colorful vegetation. Act NOW!!

9812 E Pampa Avenue Mesa, AZ 85212

$559,900
5 Beds
2 Baths
2,472 SqFt
Status Active Under Contract
MLS # 6752414
Property Type Single Family Residence
Price Type --
This 5 bedroom single level home is ready for new owners! With an oversized guest quarters/living space this property is perfect for multi generational living or an oversized office/game room. Equipped with NEW AC Units and a bright open floor plan you will love the layout of this well cared for home. The kitchen has a large island, tons of cabinet space and a large dining table for gathering. With a walk in pantry and oversized laundry there's plenty of room for storage. The oversized 3 car garage is air conditioned and has plenty of room for a workshop or gym. In the backyard you'll find a covered patio, garden with citrus and pomegranates, a water retention system and irrigation, as well as chicken coop! With quick freeway access you will love this location!

22408 N Las Vegas Drive Sun City West, AZ 85375

$559,900
2 Beds
2 Baths
2,033 SqFt
Status Active
MLS # 6745215
Property Type Single Family Residence
Price Type --
Step inside this beautifully updated 2-bedroom plus a den, home in the sought-after Sun City West community. Freshly painted throughout & featuring brand-new wood-look tile flooring in the main living areas. The kitchen is showcasing sleek quartz countertops, white wood shaker cabinetry, chic shiplap backsplash & stainless steel appliances. The primary suite is boasting a generous walk-in closet & plush new carpet. The bathroom features unique mosaic tile, a black vanity, & a quartz countertop, creating a sophisticated & spa-like environment. The spacious 2 car garage is equipped w/ ample storage cabinets. The backyard has a covered patio, ideal for relaxing & enjoying the beautiful desert landscaping that surrounds it. To top it all off, this home also features a brand-new roof & HVAC.

4125 W Bradshaw Creek Lane New River, AZ 85087

$559,900 - 4Br/3Ba -  for Sale in Circle Mountain Ranch, New River
Open House
$559,900
4 Beds
3 Baths
1,851 SqFt
Status Active
MLS # 6770710
Property Type Single Family Residence
Price Type --
Welcome to Circle Mountain Ranch. This Stunning 2019 Built Single Story Home Features a Pool and Split Floor Plan. Upon Arrival You Are Greeted with a Professionally Landscaped Yard, Paver Driveway and Gorgeous Entry. This Home Has 4 Bedrooms and 3 Bathrooms, and Just Over 1850 Sq Ft. The 2.5 Car Tandem Garage with Built In Ceiling Storage and Water Softener is Sure to Wow! The Kitchen Features Quartz Countertops, Dark Cabinets, Stainless Steel Appliances, Gas Stove and Full Pantry. The Primary Suite Offers Upgraded Luxury Vinyl Flooring, Full Bathroom with Separate Tub and Shower, Oversized Closet and Access to the Patio and Pool. Enjoy the Pool and Turf Area to Cool Off and Enjoy The Beautiful Views Anthem Community Has to Offer. Enjoy the Amenities Anthem has to offer - walking/hiking paths, parks, shopping, dining, golf & more all with EZ freeway access.

20713 N 59th Drive Glendale, AZ 85308

$559,900 - 4Br/2Ba -  for Sale in Tuscany Point, Glendale
Open House
$559,900
4 Beds
2 Baths
1,854 SqFt
Status Active
MLS # 6745509
Property Type Single Family Residence
Price Type --
Beautiful, well kept home conveniently located in the Tuscany Point neighborhood in Arrowhead Ranch. This home has mountain and lake views and sits near the golf course! The home has been updated over the years with too many upgrades to list! An open concept kitchen, grey cabinets, stainless steel appliances, wood like tile, and a newly remodeled master bathroom (2021) that includes a walk in shower and a free standing tub! The paved backyard has a sparkling play pool (resurfaced in 2020) with a waterfall and room to entertain! Owned soft water system (2023) and leased Solar panel with fixed rate! Lots of easy to maintain landscape and great neighborhood! Schedule a showing today!

13029 W Campbell Avenue Litchfield Park, AZ 85340

$559,500
5 Beds
3 Baths
2,779 SqFt
Status Active
MLS # 6782606
Property Type Single Family Residence
Price Type --
Your beautiful 5 bedroom, 3-bathroom home awaits you in the sought after Wigwam Creek South neighborhood! The inviting courtyard is perfect for sitting outside on those cooler AZ nights. When entering the home, you walk into the formal living room & dining room great for holiday gatherings. Step inside to an open-concept layout, where a bright great room flows into a lovely kitchen with stainless steel appliances, plenty of cabinets, Corian countertops, an island perfect for entertaining & porcelain sink with window above looking out to the backyard. The bedroom downstairs with a full bath is perfect for guests. The laundry room is downstairs with cabinets & attached countertop space. Going up the beautiful wood banister stairs you will find 4 more bedrooms including the owner's suite. The spacious owner's suite includes a living/sitting room, walk-in closet and an en-suite bath with a soaking tub and large walk-in shower with sitting area. Loft/landing area upstairs makes for a great desk station Outside, enjoy a landscaped backyard with a covered patio, grass and raised flower beds, ideal for relaxation. Bring your toys there is plenty of space with the RV gate and 3 car garage. This home is located near top-rated schools, freeways, parks, shopping & dining.

9006 W Luke Avenue Glendale, AZ 85305

$559,500
4 Beds
2 Baths
1,725 SqFt
Status Active
MLS # 6777178
Property Type Single Family Residence
Price Type --
BEST HOUSE ON TOUR! Stunning, brand new on corner lot, lightly lived in, 4 bed/2 bath/2 car garage, fully furnished gem in the highly sought after StoneHaven community. Inside, feel the bright and welcoming atmosphere of the open concept, split floor plan. Everything in this house is brand new. Kitchen boasts a center island, granite countertops, deep/wide ss sink, gas stove, Frigidaire double doors top/freezer bottom refrig, W/I pantry, Whirlpool dishwasher and built in microwave. The LR has big screen TV, projector w/hide away screen and an electric fireplace. The primary suite has double sinks, granite countertops, W/I closet, W/I shower, private toilet and linen closets. Garage has a Nordic Track workout center, Echelon stationary bike, tankless Rheem hot water heater & is equipped w/EV charging plug. Full house sec syst included. Community offers a pool, walking/biking paths, parks, playgrounds etc. Minutes away from Westgate Entertainment Center, State Farm Stadium, shopping, restaurants etc.... This house is a must see; don't miss it. HAVE YOUR AGENT REACH OUT FOR INFORMATION ON $7500 IN PREFERRED LENDER CREDITS ON THIS HOME.

7835 E Lakeview Avenue Mesa, AZ 85209

$559,500
2 Beds
2 Baths
1,946 SqFt
Status Active
MLS # 6760616
Property Type Single Family Residence
Price Type --
Location, check; Views, check! 2 bed/2 bath golf home with 2023 roof located a short walk to the restaurant, Pro Shop and community amenities. Watch the golfers on Hole No. 1, wind down the day with views of community ponds, or sip coffee as the sun rises over the Superstition Mtns. The original owners created unique customizations including custom wood valences over several windows, built-in Mahogany china hutch in formal dining room, Mahogany shelving surrounding the family room's electric fireplace, oak plank flooring with accents, plantation shutters, unique attic feature, extended garage and many more. As you enter from the extended north-facing covered patio and through the stained-glass windowed front door, you're greeted by a vaulted living room which gives access to the central formal dining room with striking views of the golf course. The kitchen, which provides plenty of counter & cabinet space, is brightened from the south-facing golf course window. Entertain for any occasion, whether it's BBQing in the backyard, unwinding at the high-top table overlooking golf course, casual meal at the eat-in kitchen area, or a beautiful dinner in the formal dining room. The spacious primary bedroom with south-facing windows provides space for a king bed & multiple dressers including the private bathroom featuring dual sink vanity, private room with marble walk-in shower and stool as well as extra-large walk-in closet. Visiting guests will appreciate the privacy of the guest bedroom split from the primary bedroom and the guest bathroom featuring tub/shower combo is right next door. Just off the kitchen is the spacious laundry room featuring cabinets and counterspace for home office, craft or sewing room. The south-facing back covered patio features beautiful golf course views as well as the community ponds with color changing lighted water fountains. The extended double garage features cabinets and closet. Make this home your own and start enjoying the benefits of living on SVE's beautiful golf course. The saying there is something for everyone is true in this 55+ amenity-packed community. The community also has a public golf course, restaurant, pickleball courts, tennis courts, state-of-the-art gym, beautiful woodshop, library, computer club, stitcher's room, two swimming pools and a lap pool, two hot-tubs and Clubs for all interest and hobbies.

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