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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14108 W Lisbon Lane Surprise, AZ 85379

$559,000

5 Beds

3 Baths

3,675 SqFt

Status Active Under Contract

MLS # 6742027

Property Type Single Family Residence

Price Type --

Discover this HUGE beautifully remodeled 5 bed 3 bath gem nestled in the heart of Surprise. As you pull up, you'll notice a 3 car garage with extra parking in front of a RV gate that has a gigantic concrete pad that extends to the back of the property. There, you'll find a HUGE covered patio, tastefully designed low maintenance yard and a gas stub for your future BBQ. As you step inside you'll be greeted by a great room that seamlessly connects to a beautifully updated kitchen, huge family room with surround sound and a bathroom and bedroom that would be perfect for a mother-in-law setup or office. Upstairs, you'll find an oversized loft perfect for family or game nights, HUGE master bedroom with a HUGE walk in closet, 3 other bedrooms with walk in closets and a bathroom Recent updates include new interior and exterior paint, new flooring, new quartz countertops, new baseboards, tile backsplash in the kitchen, ceiling fans, fixtures, etc.. With all the space and parking, this home would make a great multi-generation setup or a perfect Family forever home. Come take a look before it's gone!

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19930 N Hidden Ridge Drive Surprise, AZ 85374

$559,000

3 Beds

2 Baths

2,282 SqFt

Status Active Under Contract

MLS # 6764033

Property Type Single Family Residence

Price Type --

Beautiful Split 3 BR Stonecrest On Quiet Cul de Sac. w/No Neighbors Behind, SELLING TURNKEY PREFERRED. Courtyard Entry w/Pavers & Beveled Glass Door. Concrete Texture On Drive, Walks, & Patio. Vaulted Ceilings In Living/Dining. Windows Replaced w/Anderson Windows. Fans & Beautiful Light Fixtures. New Trane HVAC 2023. Whole House Water Filtration System. Kitch.w/Newer Appl.,Cherry Cabs. w/Pull-Outs, Granite, Instant Hot, Backsplash, & Cab.Lighting. Updated Guest Bath. Both Baths w/Toto Toilets. Large Cov,d. Patio ++Pagoda & Awesome Waterfall. Fencing On 3 Sides. Garage w/Attached Cabs.,Workbench, Sink & Textured Floor. Vacation Mailbox. This Home Is Quality & One Of The Best,''FOR SALE'', In ''THE GRAND.'' Leased Solar. 4 Golf Courses, Plus Amenities Galore! Come Join The Fun & Lifestyle.

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8884 E Arizona Park Place Scottsdale, AZ 85260

Open House

New

$559,000

2 Beds

2 Baths

1,446 SqFt

Status Active

MLS # 6785528

Property Type Single Family Residence

Price Type --

Charming and Well-Kept 2-Bedroom + Den in a Prime Location! Welcome to 8884 E Arizona Park Pl, a delightful home full of potential! This 2-bedroom, 2-bathroom residence, complete with a versatile den, offers 1,446 sq ft of comfortable living space. Thoughtfully designed, the home features a welcoming layout that is both functional and inviting. The well-kept kitchen and living areas are ideal for entertaining or everyday living, while the primary suite provides a peaceful retreat with a private bath. The backyard is low-maintenance and ready for your personal touch—perfect for enjoying Arizona evenings. Located in a desirable neighborhood close to Scottsdale Quarter, TPC etc... this charming property is ready to welcome its next owner.

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6560 N Loma Court Casa Grande, AZ 85194

Open House

$559,000

3 Beds

2 Baths

2,032 SqFt

Status Active

MLS # 6785782

Property Type Single Family Residence

Price Type --

Welcome to this beautiful brand new 3-bedroom, 2-bath home in Chaparral Estates! 2,032 sq. ft. on approximately half an acre, this property includes a spacious 3-car garage and is set in a quiet cul-de-sac with stunning mountain views. Kitchen: Quartz countertops, large entertainment island, white cabinetry with nickel hardware, and stainless steel appliances. Tile plank flooring runs thru high traffic areas & carpeted bedrooms. Primary Suite: Features a ceiling fan, double vanity, and a relaxing garden tub. Hall Bath: Includes double sinks for added convenience. Exterior painted with stylish gray tones with an all-tile roof for durability. A low HOA allows flexibility for storing boats, RVs & Toys, ready for immediate occupancy.

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2663 W Kilarea Avenue Mesa, AZ 85202

Open House

$559,000

3 Beds

2 Baths

1,638 SqFt

Status Active

MLS # 6764485

Property Type Single Family Residence

Price Type --

Welcome to PRIME Dobson Ranch living! Nestled in one of Mesa's most desirable master-planned communities, this charming home offers the perfect balance of comfort and convenience. Step inside to be greeted by an open, sun-drenched layout, where natural light pours through every corner. The updated kitchen is a chef's oasis, featuring sleek white quartz countertops, stylish herringbone subway tile backsplash, modern cabinets, and stainless steel appliances. Newer wood floors flow throughout the home, providing a warm and inviting touch to go along with the newly painted to perfection interior walls and split master bedroom design. Relax in your private courtyard or take advantage of the oversized driveway and 2-car garage. The backyard is an entertainer's paradise with a sparkling diving pool, freshly refinished pool deck and a shaded pergola ideal for Arizona evenings. Dobson Ranch amenities include community pools, parks, pickleball courts, and so much more. With easy access to Hwy 101, Hwy 60, and just minutes from ASU, Tempe Town Lake, South Scottsdale, and the thriving Chandler tech corridor, you're never far from the best of the East Valley. This home is a rare find! Don't miss this opportunity - Come see your new home today!

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4702 E Laredo Lane Cave Creek, AZ 85331

Open House

$559,000

2 Beds

2 Baths

1,456 SqFt

Status Active

MLS # 6765456

Property Type Single Family Residence

Price Type --

Gorgeous home with a LARGE PRIVATE BACKYARD with MOUNTAIN VIEWS! Single Story 2 bedroom and OVERSIZED OFFICE/DEN. PERFECT FOR WORKING FROM HOME!! ***Space can be converted into a 3 bedroom plus a den*** Granite countertops and stainless steel appliances in kitchen. Travertine flooring in kitchen, dining, living and den areas. Bedrooms are carpeted. Plantation shutters throughout the home. Tranquil back yard with flagstone, built in BBQ, fire pit, waterfall and above ground spa, view fencing. Surround sound in great room/dining area and den. COME SEE IT BEFORE IT'S GONE!

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14823 W El Cortez Place Surprise, AZ 85387

$558,961

3 Beds

2.5 Baths

2,594 SqFt

Status Active

MLS # 6747471

Property Type Single Family Residence

Price Type --

Oxford plan with expected completion in November. Have toys? This home has a 4-car tandem garage. Professionally designed with quartz countertops, wood-look tile, light gray cabinets, etc. Located in beautiful Miravida surrounded by mountains and many neighborhood amenities like playgrounds, pickleball courts, and picnic areas.

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14189 W Sand Hills Road Surprise, AZ 85387

$558,688

3 Beds

2.5 Baths

2,226 SqFt

Status Active

MLS # 6758381

Property Type Single Family Residence

Price Type --

MLS#6758381 January Completion! The 50RM1 floorplan at Rancho Mercado combines functionality with elegance. Step into the foyer and discover an inviting open-concept design that effortlessly connects a spacious gathering room, dining area, and gourmet kitchen. The outdoor living area is perfect for al fresco dining and memorable family moments. The owner's suite, thoughtfully tucked away for privacy, features double vanities and a large walk-in closet, adding a touch of sophistication to this stunning home. Structural options include: alternate A/C Location.

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4008 E Cholla Canyon Drive Phoenix, AZ 85044

$558,500

4 Beds

2 Baths

2,098 SqFt

Status Active

MLS # 6732455

Property Type Single Family Residence

Price Type --

LOCATION LOCATION LOCATION! RIGHT OFF THE I10 AND LOOP 202, .THIS GORGEOUS HOUSE IS FULLY UPGRADED INCLUDING NEW PAINT, NEW CARPET AND TILE, NEW BLINDS, NEW CEILING FANS, NEW MIRRORS IN THE BATHROOM AND LIGHT FIXTURES, NEW BATH AND KITCHEN FAUCETS, NEW HARDWARE, NEW TOILETS, NEW APPLIANCES EXCEPT THE REFRIGERATOR WHICH IS ONE YEAR OLD, NEW A/C, NEW ROOF, ALL NEW LANDSCAPING WITH NEW IRRIGATION, NEW GARAGE DOOR AND THE LIST GOES ON!

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1401 E Osborn Road Phoenix, AZ 85014

$558,000

3 Beds

2 Baths

1,921 SqFt

Status Active

MLS # 6667358

Property Type Single Family Residence

Price Type --

This beautiful 1947 home in Ashby place neighborhood is in the heart of Phoenix just north of Cheery Lynn Historic District. Nicely updated with brand new dual pane energy efficient windows throughout entire house, fresh interior and exterior paint, new shower tile, granite countertops and stainless steel appliances in kitchen, new roof in 2022. Detached carport, shop/storage. Solar lease. Close to Phoenix Country Club, Phoenix Children's Hospital, quaint eateries, freeways 51 and 10 freeways. You don't want to miss out on this lovely home.

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2527 W Brookhart Way Phoenix, AZ 85085

$558,000

3 Beds

2.5 Baths

2,446 SqFt

Status Active Under Contract

MLS # 6736947

Property Type Single Family Residence

Price Type --

Wake up to beautiful mountain views from the primary suite of your new home, where convenience meets natural beauty! There are 3 spacious bedrooms upstairs and an office conveniently located downstairs—perfect for work-from-home days or a hobby space. Don't forget the fantastic pool out back complete with a calming water feature. There's easy access to the AZ Canal Trail System, Deem Hills Rec Area, and the Sonoran Nature Preserve. On the filp-side you're close to shopping and entertainment with the Norterra Entertainment District just two miles away. Dive in, relax, and enjoy the sunny side of life in this wonderful home!

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16412 W Avenida Del Sol -- Surprise, AZ 85387

$557,995

3 Beds

2.5 Baths

2,260 SqFt

Status Active

MLS # 6686256

Property Type Single Family Residence

Price Type --

3 Bed 2.5 bath Elevation C Approximately 2,260 SQ FT. Gourmet kitchen with 42'' white upper Cabinets with 2-1/2'' molding and Quartz counter tops Gas cook top Range. Master bath Walk-in Shower, 3 Car Garage and garage Service door, 10Ft Tray Ceiling at extended entry. Has Tile Wood Laminate through out and Carpet in Bedrooms.

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