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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9660 S Centennial Road Apache Junction, AZ 85120

New

$559,490

4 Beds

3 Baths

2,264 SqFt

Status Active

MLS # 6786636

Property Type Single Family Residence

Price Type --

Welcome to Blossom Rock! The east valley's newest master planned community. With views of the Superstition Mountains and a wealth of amenities currently in the making including three community parks, dozens of neighborhood parks, a community school, miles of trails, beautiful lakes, and indoor and outdoor gathering spaces all meant to serve as the backdrop of the calendar of signature events and annual celebrations currently being created. A copy of the public report can be found on the AZ Dept of Real Estate's website.

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4069 W Nora Drive San Tan Valley, AZ 85144

Open House

$559,465

4 Beds

3.5 Baths

2,762 SqFt

Status Active

MLS # 6723176

Property Type Single Family Residence

Price Type --

Beautiful new build with no one behind you and views to the San Tan mountains. Gourmet kitchen layout, stainless steel appliances, 8' Interior doors.

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26191 S 228th Street Queen Creek, AZ 85142

$559,222

3 Beds

2.5 Baths

1,956 SqFt

Status Active

MLS # 6743326

Property Type Single Family Residence

Price Type --

This home offers 1954 sq ft, 3 bedrooms, 2.5 baths, enclosed study, and 2 car garage. Professionally designed with gourmet kitchen includ GE appliances and refrigerator, upgraded plank tile flooring, and finishes through out. Our homes include 10 ft ceilings, 2x6 construction, and amazing warranty service. Make new friends in the highly desirable community of Harvest, offering 2 pools, catch and release fishing, parks, splash pads, and walking trails.

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28289 N 134th Avenue Peoria, AZ 85383

New

$559,179

3 Beds

2 Baths

1,821 SqFt

Status Active

MLS # 6786784

Property Type Single Family Residence

Price Type --

A soon to be complete single-story Copper with a Mid-Century Modern exterior elevation style. This 3-bedroom home plus a flex room offers 2 baths and a 2 car garage. The kitchen features stainless steel appliances and stylish grey tone cabinetry and beautiful white quartz countertops. Throughout the home, find upgraded baseboards and wood-like tile. The home and community are at the base of a mountain and are near Vistancia. Home warranty included.

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12311 W Parkway Lane Avondale, AZ 85323

$559,000

4 Beds

3 Baths

2,272 SqFt

Status Active

MLS # 6782987

Property Type Single Family Residence

Price Type --

4 bedrooms and 3 baths, including one with private hallway and bath, perfect for family or guests. This high-end home stands apart in a class of its own with 10' ceilings, expansive living with an open concept and impressive windows that spill the beautiful Arizona sunshine onto the upgraded tile floors. The incredible Gourmet Kitchen has a classy look with shaker cabinets, gas cooktop with GE Stainless steel appliances, quartz countertops, tiled backsplash and oversized islands gives you a culinary kitchen fit for a chef. The luxuries continue on the outside as the covered outdoor patio extends onto an oversized lot with tons of room for outdoor fun. The 16' slider opens to beautiful Arizona outdoor living. 2X6 CONSTRUCTION; EXTENDED NEW HOME WARRANTY.

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5752 N Luna Drive Eloy, AZ 85131

New

$559,000

2 Beds

2.5 Baths

2,009 SqFt

Status Active

MLS # 6786684

Property Type Single Family Residence

Price Type --

. *This Designer Home* has just received special pricing to move fast! The home is complete and ready for an immediate move in, is one of our most popular floor plans. With a spacious Kitchen & raised height ceilings, you won't believe its only 2009sf; it is beautifully upgraded with well thought out finishing touches selected by our design team. Robson Ranch was voted one of the top 50 best master planned communities in the county by Where to Retire magazine. Robson Ranch is centrally located between Phoenix and Tucson and offers world-Class, resort-style amenities including: New Clubhouse w/Ballroom/Auditorium, Championship Golf, Heated Indoor and Outdoor Pools, 16 Pickleball Courts, Tennis, Fitness & Creative Arts Centers, Restaurant, Softball Fields, Dog Park & Much more.

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12406 W Cougar Drive Sun City West, AZ 85375

$559,000

3 Beds

2 Baths

2,864 SqFt

Status Active

MLS # 6701498

Property Type Single Family Residence

Price Type --

Discover the allure of this charming single-story sanctuary! Captivating front yard featuring a 2 car garage, enclosed patio, & manicures desert landscape with irrigation and accent lighting. Inside, the comfortable living/dining showcases bay windows. The spacious family room enjoys wood-look tile flooring, high ceilings, & arcadia door to the backyard, perfect for merging indoor & outdoor activities. End your gatherings in the centrally located formal dining room w/modern light fixtures. You'll love the meticulously designed kitchen that includes recessed lights, shaker cabinets, mosaic backsplash, granite counters, & skylights. Additional den, next to the family room, ideal for a game or crafting room. The bonus room can be used as a guest bedroom or office. The main bedroom boasts tile floors, bay windows, a sitting area, walk-in closet, & lavish ensuite. Be dazzled by the large outstanding backyard and enjoy the relaxing covered patio, extended seating areas, delightful landscaping, paver pathways, stone features, iron fencing & wonderful views of the 18th hole of Stardust Golf Course. This gem won't last for long!

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116 N 3rd Street Tombstone, AZ 85638

$559,000

3 Beds

3 Baths

1,404 SqFt

Status Active

MLS # 6746565

Property Type Single Family Residence

Price Type --

INVESTORS WELCOME!! THIS HOME HAS 3 - 1 BEDROOM UNITS FULLY FURNISHED FOR SHORT OR LONG TERM RENTAL OR PERSONAL LIVING PURPOSES. VERY COMFORTABLE RANCH STYLE HOME IN ''THE TOWN TOO TOUGH TO DIE''! QUIET STREET, WALK 3 BLOCKS TO ALL THE FUN IN ALLEN STREET! COVERED RV PARKING IS AN ADDITIONAL BONUS OR INCOME PRODUCING BENEFIT! OFF STREET PARKING AVAILABLE FOR GUESTS. WATCH THE BIRDS & ANIMAL PARADE JUST A STONE'S THROW FROM THE GORGEOUS GAZEBO WITH ''FIRE PIT/GRILL'' IN THE BACK YARD. LOWER LIVING SPACE COMES WITH ACCESS TO A MINE AND POSSIBLE GHOST.

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43154 N Outer Banks Drive Anthem, AZ 85086

$559,000

4 Beds

2 Baths

2,153 SqFt

Status Active

MLS # 6753584

Property Type Single Family Residence

Price Type --

Discover this stunning Tuscan-style home, featuring 3 bedrooms plus a den and breathtaking mountain views. Designed with elegance and comfort in mind, this residence offers a formal living room and dining room, perfect for entertaining, while the spacious great-room provides a welcoming space for everyday family living. The home showcases luxurious travertine flooring throughout, complemented by granite countertops and a travertine and marble backsplash in the kitchen, creating a seamless blend of style and sophistication. You'll love the location of this home as it is close to dining, shopping and entertainment not to mention the community pools, parks and clubhouse that are waiting just for you.

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2417 W Gambit Trail Phoenix, AZ 85085

$559,000

4 Beds

2.5 Baths

2,045 SqFt

Status Active

MLS # 6758138

Property Type Single Family Residence

Price Type --

AMAZING REMODELED HOME! MOVE IN TODAY! 4BD/2.5BA Brand New flooring throughout the entire home! Brand new, stainless steel appliances! New AC, New, fresh interior paint. Priced to Sell! This one won't last!

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5521 W Butler Drive Chandler, AZ 85226

$559,000

3 Beds

3 Baths

1,410 SqFt

Status Active

MLS # 6767050

Property Type Single Family Residence

Price Type --

Totally upgraded from top to toe ,in and out the last 2 yrs! Quartz counters in kitchen and island bar, all new appliances, Vaulted ceiling, fireplace and wood shutter in great room with access to side yard for early morning coffee. New air conditioner ,new water heater, new shingles, new windows and doors. Pavers front & back 3 bedrooms,3 bath rooms. Downstairs bedroom accesses 3/4 bath...ideal guest room! Cozy loft upstairs. Balcony too. Generous oasis back yard with diving pool, pavers tiled patios and tile surrounding pool! Grassy turf in the right places front and back for low maintenance.. The sparkling diving pool is so refreshing. Extra lighting invites you out after dark to enjoy and entertain . Extra pavers, RV gate and storage shed. A home to enjoy ...

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3834 E Cavalry Court Gilbert, AZ 85297

$559,000

5 Beds

3 Baths

2,160 SqFt

Status Active

MLS # 6769305

Property Type Single Family Residence

Price Type --

UPDATED TO FIVE BEDROOMS AND THREE BATHROOMS, GREAT POWER RANCH COMMUNITY, HOME SITS ON A PRIVATE CUL DE SAC, FIRST FLOOR HAS A BEDROOM, FULL BATHROOM, FAMILY ROOM AND SPACIOUS KITCHEN WITH ALL APPLIANCES AND CENTER ISLAND, MASTER SUITE HAS A PRIVATE BATH WITH SEPARATE TUB/SHOWER, DUAL SINKS, AND A WALKIN CLOSET, BACKYARD HAS COVERED PATIO AND A LARGE GRASSY AREA, GARAGE AND LAUNDRY ROOM HAVE CABINETS, COMMUNITY POOLS, CLUBHOUSE, POND AMD MANY PARKS AND WALKING PATHS, TWO NEW A/Cs IN 2021 AND A NEWER WATER HEATER, NICELY LANDSCAPED FRONT YARD AND PRIVACY IN BACKYARD,

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