2 Major Myths Holding Back Home Buyers

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.

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.

What’s Your Home Worth?

Search for Your New Home

Listing types.

For Sale

For Rent

Land

Location Search Nearby

BedsAny1+2+3+4+5+6+

BathsAny1+2+3+4+5+6+

Price MinAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Price MaxAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Advanced Options

Property TypeAnyApartmentManufactured HomeSingle Family ResidenceTownhouseTwin Home

School District

Address, MLS# or Keyword

Home SizeAny600 ft2800 ft21,000 ft21,200 ft21,400 ft21,600 ft21,800 ft22,000 ft22,200 ft22,400 ft22,600 ft22,800 ft23,000 ft23,500 ft24,000 ft24,500 ft25,000 ft25,500 ft26,000 ft2

YearAny2024+2023+2022+2021+2020+2019+2018+2017+2016+2015+2014+2013+2012+2011+2010+2009+2008+2007+2006+2005+2004+2003+2002+2001+2000+1999+1998+1997+1996+1995+1994+1993+1992+1991+1990+1980+1970+1960+1950+1940+1930+

Distressed

Open House

Location Search Nearby

BedsAny1+2+3+4+5+6+

BathsAny1+2+3+4+5+6+

Price MinAny$500$600$700$800$900$1,000$1,100$1,200$1,300$1,500$1,600$1,700$1,800$1,900$2,000$2,250$2,500$2,750$3,000$3,250$3,500$3,750$4,000$4,500$5,000$5,500$6,000$6,500$7,000$7,500$8,000$8,500$9,000$9,500$10,000

Price MaxAny$500$600$700$800$900$1,000$1,100$1,200$1,300$1,500$1,600$1,700$1,800$1,900$2,000$2,250$2,500$2,750$3,000$3,250$3,500$3,750$4,000$4,500$5,000$5,500$6,000$6,500$7,000$7,500$8,000$8,500$9,000$9,500$10,000

Advanced Options

Property TypeAnyApartmentManufactured HomeSingle Family ResidenceTownhouseTwin Home

School District

Address, MLS# or Keyword

Home SizeAny600 ft2800 ft21,000 ft21,200 ft21,400 ft21,600 ft21,800 ft22,000 ft22,200 ft22,400 ft22,600 ft22,800 ft23,000 ft23,500 ft24,000 ft24,500 ft25,000 ft25,500 ft26,000 ft2

YearAny2024+2023+2022+2021+2020+2019+2018+2017+2016+2015+2014+2013+2012+2011+2010+2009+2008+2007+2006+2005+2004+2003+2002+2001+2000+1999+1998+1997+1996+1995+1994+1993+1992+1991+1990+1980+1970+1960+1950+1940+1930+

Location Search Nearby

Lot SizeAny1+ Acres2+ Acres3+ Acres4+ Acres5+ Acres6+ Acres7+ Acres8+ Acres9+ Acres10+ Acres20+ Acres30+ Acres40+ Acres50+ Acres

Price MinAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Price MaxAny$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000$1,800,000$1,900,000$2,000,000$2,250,000$2,500,000$2,750,000$3,000,000$3,250,000$3,500,000$3,750,000$4,000,000$4,500,000$5,000,000$6,000,000$8,000,000$10,000,000$15,000,000

Advanced Options

Neighborhood

Address, MLS# or Keyword

View As: Thumbnails List

Sort by: Select Price, Low to High Price, High to Low Newer Listings First Older Listings First Open House Date

17041 W Artesia Drive Surprise, AZ 85387

$529,900

2 Beds

2 Baths

1,854 SqFt

Status Active

MLS # 6684543

Property Type Single Family Residence

Price Type --

Popular Desert Rose floorpan with its kitchen open to the living space and generous kitchen counters & island provides the open floorpan you desire for entertaining. A charming nook for your morning breakfast and a separate dining area for diner overlooking the expansive back yard. Master bedroom has a walk-in shower and large walk in closet. The hallway is wide and there are two closets for linens and other storage. This home has been used sparingly and gently as a winter retreat. The furnishings are included at no additional charge (*see some exclusions) so you may make this your own retreat.

View Property

2033 Jones Pass -- Overgaard, AZ 85933

$529,900

3 Beds

2 Baths

2,011 SqFt

Status Active

MLS # 6689874

Property Type Single Family Residence

Price Type --

Seclusion in the Towing Tall Pines! Located in the desirable section 31 area of Heber-Overgaard. This beautiful mountain home offers 3BDR, 2BA, granite countertops, hickory cabinetry, large pantry w/additional refrigerator & freezer, wood floors, separate dining room, central heat & Pellet stove, 3rd BDR can be used as an office or TV room. For the music lover, enjoy surround sound inside & out. The outside offers no maintenance siding, large covered front & rear decks, 2 car attached garage, 2 car detached garage or workshop, detached 18' carport ideal for RV storage, fully fenced back yard and so much more. New roof installed 2023. No HOA and plenty of space to bring the toys for everyone to enjoy! Call Today!!

View Property

2047 E Rice Drive Tempe, AZ 85283

$529,900

3 Beds

2 Baths

1,652 SqFt

Status Active

MLS # 6697041

Property Type Single Family Residence

Price Type --

Welcome to your dream single-story home with a complete top-to-bottom remodel! This stunning residence boasts a fresh and modern aesthetic that will take your breath away. The kitchen and bathrooms feature elegant quartz countertops, a beautiful and durable addition. Stainless steel appliances make meal preparation and entertaining a delight. This single-story gem offers a turnkey opportunity to live in style and comfort. With a meticulous remodel and attention to detail, it's a rare find. Don't miss out on the chance to call this house your home! New Flooring & Baseboards, new sliding doos : Stunning new flooring throughout the home.

View Property

43 W Castle Rock Road San Tan Valley, AZ 85143

$529,900

4 Beds

3 Baths

2,826 SqFt

Status Active

MLS # 6695848

Property Type Single Family Residence

Price Type --

Welcome to your dream home at Johnson Ranch! This stunning property boasts a versatile layout with a downstairs bedroom and bathroom, ideal for guests or in-law quarters, while the expansive loft upstairs offers additional space for relaxation and entertainment. The soaring vaulted ceilings enhance the sense of space and airiness throughout. Step into your own private oasis in the backyard, complete with a sparkling diving pool, basketball court for friendly competitions, and a cozy firepit area perfect for gathering under the stars. The chef's kitchen is a culinary delight, featuring granite countertops, an island, top-of-the-line Whirlpool appliances including a double oven and gas cooktop, ample pantry space, and more. CLICK MORE Retreat to the luxurious master suite with its charming barn door entry to that ensuite with dual sinks, separate shower and tub, and a generously sized closet. Outside, enjoy the low-maintenance Arizona backyard with its self-cleaning pool, extended covered patio, and convenient storage shed. Recent updates include the interior paint(2021), and the exterior (2018), ensuring a fresh and modern aesthetic. Experience the best of Johnson Ranch living with access to community amenities such as pools, sports courts, playgrounds, parks, and scenic walking trails. Conveniently located just minutes away from dining and entertainment options in the vibrant Central Queen Creek area. Don't miss the opportunity to make this your forever home!

View Property

26842 N 173rd Drive Surprise, AZ 85387

New

$529,900

4 Beds

2 Baths

2,180 SqFt

Status Active

MLS # 6707542

Property Type Single Family Residence

Price Type --

This former model home in Cortana at Desert Oasis offers 4 bedrooms & 2 baths in 2180 SqFt with an open great room layout and split bedrooms. The kitchen features white cabinetry with crown molding, granite counters, stainless appliances including a gas range, pantry, and island with stainless undermount sink and breakfast bar. Sliding doors lead out from the great room to the covered patio, extended paver patio and a low-maintenance backyard with single story neighbors and artificial turf for kids and pets to play on. The spacious primary bedroom has an en-suite bath with dual sink vanity, oversized shower, and walk-in closet. Other features include a 2 car garage, community pool, and walking distance to one of many community parks and Desert Oasis Elementary. See today!

View Property

418 N Sicily Place Chandler, AZ 85226

New

$529,900

4 Beds

2 Baths

1,920 SqFt

Status Active

MLS # 6707017

Property Type Single Family Residence

Price Type --

Original owners, in this lovely 4 bedroom, 2 bath home perfectly situated at the end of a cul-de-sac. Large drive way with RV gate. Enter thru the front door and you'll notice the high vaulted ceilings! Pass on by to the family room, kitchen area and be amazed. Open concept kitchen with white cabinets, gas range/oven, SS appliances, & a large island. Family room boost a gas fireplace and offers natural lighting with a skylight. Primary Suite offers a large living area, separate shower & tub, dual sinks, vanity & a walk in closet. The 2 1/2 car garage offers extra storage & a wall AC unit. Grass backyard, with a large covered patio & 2 storage sheds. This home is close to Chandler Mall and all it has to offer. Lots of restaurants and shopping within 5 minutes.

View Property

10412 E Nacoma Drive Sun Lakes, AZ 85248

New

$529,900

2 Beds

2.5 Baths

2,119 SqFt

Status Active

MLS # 6707631

Property Type Single Family Residence

Price Type --

Nestled in the quaint GATED COMMUNITY of Ironwood this Paloma model has 2 bdrms-both are ENSUITES + a den/office + 2.5 BATHS + a GOLF CART GARAGE for the perfect amount of space w/lots of NATURAL LIGHT & PLANTATION SHUTTERS. The kitchen was updated w/QUARTZ countertops & has a COOKTOP w/wall ovens + a wet bar off the power room. Generous living & dining rooms + cozy family room & eat-in kitchen allows plenty of space for entertaining. Huge primary bdrm has 2 BIG CLOSETS & sep exit to patio & primary bath has been REMODELED w/ a spacious WALK-IN SHOWER. Tons of STORAGE & a laundry sink in the laundry rm. Cov'd patio in PRIVATE back yard w/ lemon, naval & AZ sweet citrus trees. Newer exterior paint (2022) brand new water heater (2024) EPOXY flooring in EXTENDED DEPTH garage. HVAC (2015)

View Property

516 N Leoma Lane Chandler, AZ 85225

$529,900

3 Beds

2 Baths

1,982 SqFt

Status Active

MLS # 6695111

Property Type Single Family Residence

Price Type --

Experience the lavish life in Chandler with this 3 bed 2 bath palace fit for a king (or queen)! The freshly painted walls will make you feel like you're living in a magically bright cloud, while the quartz countertops and stainless steel appliances in the updated kitchen will turn you into a professional chef (in your dreams). And if that's not impressive enough, the cabinets have also been painted with love and care to give you all the storage space you'll ever need. With new flooring and carpet throughout, your feet won't know what hit them - except for pure luxury. Plus, say goodbye to high energy bills and hello to saving money and the planet with the owned solar panels. Don't miss out on living in a fancy-schmancy home with all the modern bells and whistles (and no, we're not talking about doorbells and fire alarms).

View Property

5495 Desert Willow Loop Sierra Vista, AZ 85635

$529,900

4 Beds

3 Baths

2,593 SqFt

Status Active

MLS # 6632246

Property Type Single Family Residence

Price Type --

Step into luxury with this 4 bed, 3 bath split floorplan home that seamlessly combines style with comfort. In a quiet double cul-de-sac neighborhood, this home features an open floor plan with wood plank tile and plenty of natural light. Enjoy a beautiful kitchen with quartz countertops, stainless-steel appliances, and soft water throughout the home. The large master suite features a large walk-in double shower, walk-in closet, and a large sitting room. The guest suite also features a large private walk-in shower. This home boasts an oversized 3 car garage with epoxy floors for easy cleanup. A private backyard oasis welcomes you with upgraded pet-friendly turf, a travertine patio and a built-in natural gas fire pit creating a smokeless, cozy ambiance. One owner is a licensed AZ real esta te agent in Arizona.

View Property

6233 W Mescal Street Glendale, AZ 85304

$529,900

5 Beds

3 Baths

2,444 SqFt

Status Active

MLS # 6628137

Property Type Single Family Residence

Price Type --

Discover the ideal blend of space and comfort in this inviting five-bedroom, three-bathroom home nestled in a desirable Glendale neighborhood close to shopping and restaurants. This well-maintained home has a beautiful kitchen with modern appliances, ample counter space, and a roomy island, ideal for both preparing meals and gathering with family and friends. A key feature of this property is its outdoor appeal. Covered patio with a sparkling swimming pool set amidst a landscaped backyard which creates a perfect atmosphere for leisure and entertainment. For those with multiple vehicles or in need of extra storage, the three-car garage provides practical space for cars, tools, or hobbies. With no HOA, enjoy the freedom to personalize your property without additional restrictions. Don't miss out on the opportunity to call this welcoming property home.

View Property

3113 E Cottonwood Lane Phoenix, AZ 85048

$529,900

4 Beds

2.5 Baths

1,957 SqFt

Status Active

MLS # 6664484

Property Type Single Family Residence

Price Type --

**New upstairs flooring** Welcome Home!!! This gorgeous 4 bedroom 2.5 bath home at Lakeside in the heart of Ahwatukee is in a fantastic location. Close to restaurants, shopping, schools, parks, hiking or biking at South Mountain Park & Reserve, golfing at the Foothills Golf Club & easy access to the 202 Fwy. You'll love the layout of this 2 story home. Your kitchen offers granite counter tops, a breakfast bar, stainless steel appliances, a pantry & plenty of cabinetry for storage & organization. Your spacious upstairs master suite offers a plethora of natural light, a walk in closet, dual granite vanity & custom tiled walk in shower. This home also offers upgraded ceiling fans, plantation shutters, a wood burning fireplace & a 3 car garage to utilize. Your backyard oasis offers a covered patio, extended pavers, a grass lawn & a sparkling pool with a basketball hoop to enjoy. This gem in the desert is a Great Buy & a Must See!!!

View Property

7777 E 2nd Street Scottsdale, AZ 85251

$529,900

2 Beds

2 Baths

1,303 SqFt

Status Active

MLS # 6665608

Property Type Apartment

Price Type --

Finally On Market!!! Beautiful resort style property within a gated community, in the heart of Scottsdale. This Location backs to miles of Indian Bend walking trails just outside your door. 2 bedroom, 2 bath, 1,303 sq. ft. One of the largest floor plans in the complex. Located on the third floor, with great views from every window, high vaulted ceilings, and a bright and spacious open floor plan. This home is being sold by the original owner and has only been used occasionally as a 2nd home - occupied fewer than 30 days a year. Conveniently located near golf courses, parks, restaurants, shopping, bus stops, & the vibrant downtown Old Town/Scottsdale Fashion Square. Relax by the secluded pool w/ hot tub & BBQ. Small & very desirable community, these units seldom become available! Hurry!!!

View Property