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.

Click Here to See What Your Home is Worth

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

10525 E Sunnydale Drive Sun Lakes, AZ 85248

$485,000

2 Beds

2.5 Baths

1,850 SqFt

Status Active

MLS # 6695467

Property Type Single Family Residence

Price Type --

Step into this beautifully updated home and be greeted by spacious, light-filled interiors. NEW ROOF plus recently remodeled, boasting new flooring, stainless steel appliances, and quartz countertops in the kitchen, while the bathrooms feature modern fixtures. Every room is refreshed with new paint and updated lighting, ensuring both style and comfort. Outside, a large private backyard invites relaxation or outdoor gatherings. Conveniently located near shopping and dining, this home offers the perfect blend of tranquility and accessibility. Don't miss out on this wonderful opportunity to own a modern, stylish retreat.

View Property

3819 E Hampton Avenue Mesa, AZ 85206

New

$485,000

5 Beds

2 Baths

2,167 SqFt

Status Active

MLS # 6704571

Property Type Single Family Residence

Price Type --

This is an upgraded 5 Bedroom, 2 Bathroom, ranch-style Mesa home featuring a covered back patio overlooking the private, fenced pool and synesthetic grass play area! Inside, you'll find both a family and living room, with the family room connecting to the kitchen. Dine at the breakfast bar or adjacent dining area! Step into the Master bathroom to see a walk-in, surround-tile shower. This home has OWNED SOLAR for massive savings. Other perks include an indoor laundry room and nearby parks (one with dog park area), plus Eastern Canal Trail for walking, running, and biking. Enjoy close proximity to many shopping and dining options, supermarkets, golfing, and the Usery Mountain Recreation Area!

View Property

3131 N Central Avenue Phoenix, AZ 85012

$485,000

1 Bed

1.5 Baths

822 SqFt

Status Active

MLS # 6413953

Property Type Apartment

Price Type --

*Construction Completed* 3.5% buyer incentive can be used towards rate buy down, upgrades, closing costs, or combo of those! Introducing Edison Midtown Phase 2 with 60 new construction condominiums. This spacious one bedroom condo offers ten ft. ceilings, an open floor plan, and large master bedroom with ensuite bathroom. Chefs kitchen offers expansive cabinetry, quartz countertops and stainless steel appliances including a gas range. Enjoy the views to the East from the spacious balcony. Edison Midtown features incredible amenities for that perfect Urbanite lifestyle. A beautiful pool and lap pool, 2000 sq. ft. fitness center and lounge, and gated parking garage.

View Property

7021 E Earll Drive Scottsdale, AZ 85251

$485,000

3 Beds

2 Baths

1,340 SqFt

Status Active

MLS # 6675259

Property Type Townhouse

Price Type --

Charming condo in the heart of Oldtown Scottsdale! End unit with pool and spa right outside front door. Bright open gathering areas with TWO balconies to relax and take in the views. Kitchen has SS appliances, LARGE walk-in pantry, and access to roof-top balcony over-looking pool area. Beautiful master suite with updated bathroom, walk-in closet, and private access to balcony. Private garage right outside front door. Gated community. All this perfectly located in the heart of historic downtown Scottsdale... the center of top-rated restaurants, shopping, galleries, and entertainment all within a quick walk.

View Property

1550 S Hopi Trail Dewey, AZ 86327

$485,000

3 Beds

2 Baths

2,056 SqFt

Status Active

MLS # 6569707

Property Type Single Family Residence

Price Type --

*** Ask the Listing Agent about the seller buying down your interest rate as low as 4.99% on this home! Beautifully Remodeled Home on HUGE 136,309 sqft Lot. Brand New Roof. New Heating & AC. New Windows. New Luxury Vinyl Plank (waterproof) Flooring throughout. Kitchen boasts Brand New Cabinets, Quartz Countertops, Stainless Steel Appliances, and Large Island. Convenient Laundry built into 2nd bathroom. Lots of Room for Animals, RV's, etc. Excellent Location with good privacy.

View Property

5419 W Beverly Road Laveen, AZ 85339

$485,000

3 Beds

2.5 Baths

2,800 SqFt

Status Active

MLS # 6601439

Property Type Single Family Residence

Price Type --

Come and see this adorable 3-bed, 2.5-bath home plus den in Estrella Mountain Village! The large great room captivates with its spaciousness and natural light, offering a French door that leads to the back patio. The kitchen displays recessed lighting, a pantry, plenty of cabinetry, stainless steel appliances, and a 2-tiered island with a breakfast bar. Flexible den can be used as an office or bedroom. Discover the sizable primary bedroom featuring an ensuite with dual sinks, make-up desk, and a walk-in closet. Built-in cabinets in the loft for extra storage. The backyard is an entertainer's dream, complete with a covered patio where you can unwind and enjoy your private outdoor haven. Seize the opportunity while it's still available!

View Property

6438 W Mercer Lane Glendale, AZ 85304

$485,000

3 Beds

2.5 Baths

1,570 SqFt

Status Active

MLS # 6628488

Property Type Single Family Residence

Price Type --

This home is the absolute definition of ''turn-key''. From solar panels and a brand-new roof to new carpet, paint and appliances the list of improvements are too long to list in this description (ask for the list)! With over 90k worth of improvements this home sits ready to go on a corner lot and with NO HOA. With one of the larger lots in the Montara community, you will find yourself walking distance to a fantastic neighborhood green belt and community parks. Welcome home!

View Property

4809 E Fire Opal Lane San Tan Valley, AZ 85143

$485,000

3 Beds

2 Baths

2,228 SqFt

Status Active

MLS # 6677812

Property Type Single Family Residence

Price Type --

Welcome to your dream home in the Village at Copper Basin Community of San Tan Valley! This stunning 2019-built residence boasts 3 bedrooms and 2 bathrooms, offering a perfect blend of modern design and functionality. The kitchen is complete with granite countertops, a large island, and a stainless steel appliance package. It seamlessly flows into the spacious great room, creating an ideal space for family gatherings and entertaining guests. The oversized primary suite is a true retreat, featuring ample room for a sitting area or home office with views of the pool, dual sinks in the en-suite bathroom, and a generous walk-in closet. The original 4th bedroom has been ingeniously merged to create an oversized double master feel, perfect for accommodating guests, setting up a home gym, or creating a cozy man-cave. Step outside through the glass sliding doors to discover your private backyard oasis. Enjoy lazy afternoons under the covered patio, take a refreshing dip in the PebbleTec SHASTA pool, or let the kids and pets play freely on the lush turf area. Plus, benefit from added privacy as the home backs to a park. This home offers not just a place to live but a lifestyle of luxury and comfort. Don't miss the opportunity to make it yours!

View Property

2241 E Garfield Street Phoenix, AZ 85006

$485,000

3 Beds

2 Baths

1,288 SqFt

Status Active

MLS # 6636701

Property Type Single Family Residence

Price Type --

EASY TO SHOW, Owner has stopped taking STR reservations from 3/30 on. You don't want to miss on this immaculate property. Located in the heart of Phoenix you'll be close to downtown, minutes from the 51, 202, 143, I-10, & I-17. 3 Spacious bedrooms in a split floor plan and 2 baths. Carpet in the bedrooms and wood-like tile flooring everywhere else. The kitchen offers tile backsplash, contemporary light fixtures, island with breakfast bar, and stainless steel appliances. Spacious bedrooms and a large living room area. No maintenance landscaping in front & back yard. This beauty won't last long. Take advantage of the AirBNB peak season or live in this turn key centrally located home! Brand New AC with 10yr war. PAID OFF/ OWNED SOLAR Newer water heater. New sewer line.

View Property

512 S Mud Springs Road Payson, AZ 85541

$485,000

3 Beds

2 Baths

1,792 SqFt

Status Active

MLS # 6660754

Property Type Single Family Residence

Price Type --

Wow! You don't want to miss looking at this home. Very well taken care of 3 large bedrooms, 2 bath, 1792 sq ft, eat in kitchen with granite, gas fireplace in the great room, open floor plan and so much more. Oversized 2 car garage with plenty of room for storage, RV gate and pad on the side of the home. Off the master bedroom is a separate exit to a screened in porch. Peach, apple & apricot fruit trees. Plus a large rose garden. Great neighborhood with no HOA, across from a school, new park with football. baseball and pickle ball courts. Hurry this one won't last long. Call today!

View Property

17721 W Granite View Drive Goodyear, AZ 85338

$485,000

4 Beds

2.5 Baths

2,917 SqFt

Status Active

MLS # 6662364

Property Type Single Family Residence

Price Type --

Welcome Home to this 4 bed + den & loft, 2.5 bath 2917sqft home in the Award Winning Master Planned Community of Estrella. 72 Acres of Lakes, Mountains, 2 Resident Centers & Nicklaus Designed Golf Course. This beautiful home is equipped with carpet and tile flooring. Kitchen showcases stainless steel appliances, granite counter tops, and white cabinets. Den, half bath, formal dining and a built in office / homework room downstairs. All bedrooms are upstairs along with a loft. Relax out back in your low maintenance landscaped backyard with artificial grass, pavers, and fire pit. Enjoy low electric bills as your 9.7kW solar panel system works for you! Solar is leased through Sunrun with a fixed rate of $173 monthly. See this home today before it is gone!

View Property

14258 N 154th Lane Surprise, AZ 85379

$485,000

4 Beds

2.5 Baths

2,035 SqFt

Status Active

MLS # 6672000

Property Type Single Family Residence

Price Type --

Experience your own backyard retreat, complete with lush green grassy play area, a fenced pebble tec pool, and an extended covered patio perfect for family get-togethers and relaxation. Your extended paved RV parking area stands ready to accommodate your camper and outdoor toys. Step into the remodeled kitchen showcasing a custom-built granite top table complementing the counter tops, alongside a tastefully tiled backsplash, a stylish farmhouse sink, and modern stainless-steel appliances. Upstairs, discover four generously sized bedrooms each boasting walk-in closets, while a versatile office-den showcases a contemporary barn door which adds to the home's charm. Enjoy the durability and beauty of Cali Bamboo waterproof laminated flooring throughout the main living areas and wet spaces, including the stairwell. Additional features include ceiling fans, newer window blinds downstairs, and 4 convenient storage sheds. This meticulously cared for home reflects a true sense of pride in ownership.

View Property