2 Major Myths Holding Back Home Buyers

2 Major Myths Holding Back Home Buyers | Simplifying The Market

Urban Institute recently released a report entitled, “Barriers to Accessing Homeownership,” which revealed that eighty percent of consumers either are unaware of how much lenders require for a down payment or believe all lenders require a down payment above 5 percent.”

Myth #1: “I Need a 20% Down Payment”

Buyers often overestimate the down payment funds needed to qualify for a home loan. According to the same report:

Consumers are often unaware of the option to take out low-down-payment mortgages. Only 19% of consumers believe lenders would make loans with a down payment of 5% or less… While 15% believe lenders require a 20% down payment, and 30% believe lenders expect a 20% down payment.”

These numbers do not differ much between non-owners and homeowners; 39% of non-owners believe they need more than 20% for a down payment and 30% of homeowners believe they need more than 20% for a down payment.

While many believe that they need at least 20% down to buy their dream home, they do not realize that programs are available that allow them to put down as little as 3%. Many renters may actually be able to enter the housing market sooner than they ever imagined with programs that have emerged allowing less cash out of pocket.

Myth #2: “I Need a 780 FICO® Score or Higher to Buy”

Similar to the down payment, many either don’t know or are misinformed about what FICO® score is necessary to qualify.

Many Americans believe a ‘good’ credit score is 780 or higher.

To help debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.

2 Major Myths Holding Back Home Buyers | Simplifying The Market

As you can see in the chart above, 53.5% of approved mortgages had a credit score of 600-749.

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream home may already be within your reach.

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6659 E Indian Bend Road Paradise Valley, AZ 85253

$18,974,888
8 Beds
16 Baths
26,393 SqFt
Status Active
MLS # 5725463
Property Type Single Family - Detached
Experience this brand new, meticulously designed custom estate, under construction for the past 10 consecutive years, located in the safety & privacy of an exclusive guard-gated community. Enjoy a large acreage estate feel, with low maintenance, energy-efficient, inexpensive upkeep. This 8 bed, 16 bath unique layout offers large living on a smaller footprint with refined elegance & unparalleled construction quality. Save years of construction with the ability to select your own finishes. A magnificent piece of design & architecture offering an abundance of amenities: 20-car collector's garage, 2 separate guest houses, floating dining room, indoor pool, swim up bar, multipurpose shooting range, bank vault, salon, wine tasting room & cellar, home theater, indoor/outdoor living areas & more!

5335 N Invergordon Road Paradise Valley, AZ 85253

$16,950,000
6 Beds
13 Baths
25,851 SqFt
Status Active
MLS # 5676395
Property Type Single Family - Detached
Simple words cannot describe an estate of this stature. The polished elegance and imposing beauty are what movies are made of, and it's easy to imagine many a movie being filmed in this magnificent showpiece. The rooms are so luxurious and so unique, it's impossible to convey the grandeur without seemingly exaggerating, and to say that this mansion is constructed with quality materials is a massive understatement, as it has been built with commercial standards and engineering that are rarely, if ever, seen in residential construction. If that doesn't get your attention, the 25-person elevator sure will, serving as a focal point so spectacular that it will take your breath away. Impeccable custom design adorns every inch of this palatial residence, including a full home theatre, lavish two

8055 N Mummy Mountain Road Paradise Valley, AZ 85253

$16,500,000
7 Beds
12 Baths
25,416 SqFt
Status Active
MLS # 5165200
Property Type Single Family - Detached
Lush, mature landscaping, hand-laid stone walls, and artistic wrought iron accents line the guest drive of this impressive 5-acre Mediterranean estate. Architecturally designed by Erik Peterson and custom built by Desert Star Construction, this magnificent estate boasts 7 bedrooms, 12 bathrooms, a detached 2-bedroom guesthouse, a free-standing 1,800 square foot fitness facility, a tennis court and more than 25,000 square feet of incomparable Arizona living. Showcasing the very best in home entertainment, this grand estate's lower level is comprised of a private theater with tiered seating, ultra modern music room with pro lighting package, a recording studio and a custom-designed instrument showroom.

8100 N 68th Street Paradise Valley, AZ 85253

$16,500,000
5 Beds
7.5 Baths
17,912 SqFt
Status Active
MLS # 5701342
Property Type Single Family - Detached
Romantic Urban Villa in the heart of Paradise Valley. This palatial Mediterranean estate is a master class in what can be achieved with the worlds finest materials, a renowned team of artisans, and an unlimited budget.Designed by Juan Sandoval following the format of 17th Century Colonial architecture, but with every modern convenience. This magnificent home is unparalleled in its construction quality and architectural precision. Every 2 acre part of this estate was designed and built in over a ten year period. Two spectacular central courtyards. One for gardens and fountains, the other for a stunning 60X60 foot pool. The design of the home guarantees beauty from every room, and a level of security unmatched by even the most advanced technology. DO NOT MISS MOTION VIDEO!

New River AZ 85087

$16,000,000
4 Beds
2 Baths
19,161 SqFt
Status Active
MLS # 5584412
Property Type Single Family - Detached
AMAZING OPPORTUNITY TO OWN 32 ACRES TOTAL NORTH OF ANTHEM OUTLETS. BORDERS I17 FRONTAGE ROAD. C3 Zoning. Fantastic location. Please DO NOT bother anyone on property. Recent appraisal meets value. Willing to sell 8 Acres South of Nursery separately. Seller will finance! Thank you.

19920 W Verde Hills Drive Wickenburg, AZ 85390

$14,900,000
3 Beds
3.5 Baths
5,365 SqFt
Status Active
MLS # 5685013
Property Type Single Family - Detached
Powell Ranch sits on a plateau providing 360 views, with 538 deeded acres and grazing leases from the state on over 2,200 contiguous acres (all fenced). Designed by architect Bill Otwell, the 5,365 SF Santa Fe style main house with 3BR/3.5BA, office and media room is constructed of 18 thick adobe walls covered with cement plaster. 9'+ ceilings are unique - stripped Aspen poles above giant pine beams, 4 fireplaces, 3 fountains & lush landscaping. 1,066 SF guesthouse is 2BR/1BA; 2,200 SF detached garage/workshop fits 3 cars, RV, storage and 1/2 BA. Equestrian facilities include a large arena, 4 outdoor stalls/corrals w/auto water (3 shaded), covered hay storage, tack room, horse wash, and 60' round breaking pen. See Documents section for details.

5335 N Wilkinson Road Paradise Valley, AZ 85253

$14,800,000
7 Beds
12 Baths
15,381 SqFt
Status Active
MLS # 5579913
Property Type Single Family - Detached
Bramasole: Enjoy your own resort! Privacy, luxury & relaxation in the heart of the Valley. Situated on 4.5 acres of lush landscaping boasting over 15,000 SF of elegance featuring a 3,000-bottle wine cellar, chef's kitchen, library, high-tech media room, exercise room, and an oversized 9 car garage! The outdoor oasis rivals any resort. Dip into your beautiful saltwater pool & spa, entertain with seating for 120 of your closest friends while floating in your 150,000 gallon lazy river with a 30 FT water slide, rope swing, splash pad, volleyball court, firepits and putting green. Enjoy your outdoor commercial kitchen, his & her locker rooms and a separate guest house, in addition to a caretakers cottage with an additional garage! Your dream estate awaits YOU...

5290 E Exeter Boulevard Phoenix, AZ 85018

$13,950,000
10 Beds
12.5 Baths
18,900 SqFt
Status Active
MLS # 5541378
Property Type Single Family - Detached
Taliesin trained and renowned architect, George Christensen is responsible for the design of this timeless home. On 5 acres, this estate is comprised of 4 separate structures including the 12,000 sf main house, a 3,500 sf guest house, a 1,900 sf office and a 1,500 sf gym and caretaker cottage. The main house has 6 bedroom suites 7.5 baths. Finishes like hand applied plaster walls, wide-plank white oak wood flooring, reclaimed beams, Hopes steel windows and doors, and multiple fireplaces set the stage for comfortable elegance and easy living. The open kitchen includes La Cornue and Viking appliances; creamy marble countertops, and the finest custom cabinetry. A formal living room and dining room create perfect settings for entertaining, while the very large family room is adjacent to

7004 N Invergordon Road Paradise Valley, AZ 85253

$13,950,000
6 Beds
10 Baths
15,000 SqFt
Status Active
MLS # 5716629
Property Type Single Family - Detached
This sprawling, private appx 5 acre mountainside estate boasts 15,000+ square feet & offers 6 bdrm suites, 10 baths & includes almost every imaginable detail to class & quality one could dream of. Exquisitely appointed with custom light fixtures; beautiful flooring throughout; stone carved Italian marble columns; incredible chef's kitchen; butler pantry; game room; wine tasting room & storage room for 1400+ bottles; custom office; sound proof 12 seat home theater; private gym; oversized pool w/see through viewing area from lower level family/game room; fire pots; a beautiful mountainside waterfall & a separate guest/housekeeper/chef quarters.This estate features incredible indoor/outdoor entertaining with absolutely amazing southern views & some of the best sunrise and sunsets in all of AZ

9625 E Aw Tillinghast Road Scottsdale, AZ 85262

$12,500,000
6 Beds
8 Baths
11,250 SqFt
Status Active
MLS # 5689418
Property Type Single Family - Detached
Timeless contemporary estate that was inspired with an unlimited budget, a blank canvas for architectural creativity and a one-of-a-kind site with views of the entire southern horizon. A visionary and profound architectural statement with intersecting radial and linear forms built to commercial construction standards. The pioneering roof design features 'folded plates' of copper that perfectly blend the home into the natural desert surroundings. Interior details include Hope Steel doors, limestone flooring, dry-stacked sandstone fireplace surrounds and custom copper details and trim around every window, doorway and wall. The site provides 270 degree, top-of-the-world sunset, city light and mountain views from 16 hilltop acres at the apex of Lone Mountain in Scottsdale's Desert Mountain.

5901 E Valley Vista Lane Paradise Valley, AZ 85253

$12,488,000
8 Beds
10 Baths
14,274 SqFt
Status Active
MLS # 5706859
Property Type Single Family - Detached
This romantic 14,275 sq ft Spanish Colonial Estate on 2.53 acres with superb views of Camelback Mountain harmoniously blends graceful architecture,expert craftsmanship and unsurpassed handcrafted detail. Hand-hewn stone and wood pegged plank hardwood floors, 19ft ceilings with 2,000lb Oregon beams,leaded glass windows, hand-forged ironwork + hand carved cabinetry complement luxuriously comfortable indoor living. Private grounds of this gated estate add spellbinding allure with 8 fountains, a stone aqueduct with cascading waterfall, 9 fireplaces, elegant pool, sport court and specimen plantings. Other features include savant control system, 8 exquisite bedrooms with 2 bedroom guesthouse, media room, 2 libraries, exercise, game and wine rooms. A $3+ million expansion was completed in 2013.

5515 N Saguaro Road Paradise Valley, AZ 85253

$11,800,000
5 Beds
8 Baths
10,084 SqFt
Status Active
MLS # 5217219
Property Type Single Family - Detached
VIEWS & LOCATION! Great value at the base of Camelback Mountain with STUNNING views in all directions! This is a rare chance to own approx 9 AC in Paradise Valley's premier location! Built by Nance Construction, with over 10,000 SF. Great care went into the architectural details & decorative finishes to create a gracious home that quietly speaks of harmony of materials enriched by contrast of textures including fabulous tile, wood & plaster details. Graceful floor plan with 5 bedrooms, 8 baths, 8 fireplaces indoors & out, study, media room & an expansive master suite w/ a balcony running the length of the entire top floor for spectacular mountain views. Lush grounds with 8 serene patios, gorgeous Lapis blue pool, additional water features, fire pit, Ramada & a separate one bedroom casita.

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