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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20018 N 18th Drive Phoenix, AZ 85027

$489,000

4 Beds

2 Baths

1,896 SqFt

Status Active

MLS # 6653008

Property Type Single Family Residence

Price Type --

This lovely 4 bedroom, 2 bathroom home has been remodeled throughout. Step inside and be greeted by the eye catching wood burning fireplace and beautiful kitchen with new cabinets, appliances, counters and appliances. New flooring, paint, and light fixtures throughout. Both bathrooms have been tastefully remodeled with easy access showers, new cabinets, counters and fixtures. The trendy Arizona room leads you to the lush backyard with an expansive patio. The fresh pool decking and sparking blue pool are sure to catch your eye. Additional upgrades include new furnace, new a/c, new plumbing and updated electrical. Put this home on your MUST see list.

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17531 W Fetlock Trail Surprise, AZ 85387

$489,000

3 Beds

2 Baths

2,126 SqFt

Status Active

MLS # 6656370

Property Type Single Family Residence

Price Type --

Welcome home! This well maintained 3 bed, 2 bath residence boasts an expansive 2126sqft of living space and offers the perfect blend of comfort and functionality. Step into the heart of this home and discover an inviting open floor plan, seamlessly connecting the spacious living areas. Enjoy the eat-in kitchen featuring modern appliances and a warm, welcoming atmosphere for gatherings. Ideal for remote work or a game room, enjoy the convenience of not one, but two bonus rooms - providing the flexibility your lifestyle demands. The low-maintenance backyard is a blank slate ready for your vision. The 3-car garage is a car enthusiast's dream, equipped with LED lighting and epoxied floors for a polished finish the RV gate is perfect for your outdoor adventures. Nestled in the Desert Oasis Community, experience the harmony of suburban living while still enjoying easy access to local amenities.

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12610 N 41st Drive Phoenix, AZ 85029

$489,000

3 Beds

2 Baths

1,468 SqFt

Status Active

MLS # 6678767

Property Type Single Family Residence

Price Type --

NO HOA!! MAGNIFICIENT GEM. This house is perfect. Fully replaced roof 2019. Newly installed tankless water heater in 2023 with owned soft water system in 2022. Brand new carpet in living room and master bedroom. Pool has a brand new variable speed pump in 2023. Owners spared no expense creating 2 RV gates with concrete slab, electric and dump. Built in garage cabinets for tons of storage with epoxy floors. Garage is plumbed for compressed air to outside lift area that has a 10,000 pound Benpak lift including epoxy coated concrete for easy clean up. Exterior custom built shed has electric, lighting, ceiling fan, epoxy floors, and is fully insulated with attic storage. Fresh paint inside and out including the shed. Networking throughout. This house won't last long. OWNER AGENT

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7017 W Mcrae Way Glendale, AZ 85308

$489,000

3 Beds

2.5 Baths

2,304 SqFt

Status Active

MLS # 6668087

Property Type Single Family Residence

Price Type --

Welcome to your dream home in Glendale's prestigious Arrowhead Country Club neighborhood! This spacious 3-bedroom, 2.5-bathroom home boasts 2,304 square feet of comfortable living. Enjoy a generously sized living area perfect for entertaining guests or relaxing with family. The very large kitchen is a chef's delight, offering ample space for culinary creativity. Retreat to the large master suite for ultimate comfort and relaxation. Beat the Arizona heat with your own private pool, ideal for refreshing dips and poolside lounging. Conveniently located near Abrazo Arrowhead Hospital and neighborhood schools, with easy access to the 101 freeway and shopping at Arrowhead Town Center. Don't miss out on this incredible opportunity to experience the epitome of Glendale living

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1985 W Raven Drive Chandler, AZ 85286

$489,000

3 Beds

2.5 Baths

1,509 SqFt

Status Active

MLS # 6665827

Property Type Single Family Residence

Price Type --

This 3-bedroom, 2.5-bath Shea Home situated in the highly sought-after Clemente Ranch neighborhood. The spacious great room boasts vaulted ceilings and a neutral interior paint palette. The kitchen is a chef's delight with granite countertops, an island, ample cabinet space, stainless steel appliances, and recessed lighting. Upstairs, the master bedroom impresses with vaulted ceilings, dual sinks adorned with granite countertops, and a roomy walk-in closet. The secondary bedrooms feature laminate wood floors and ceiling fans. Step into the backyard oasis with lush grass, providing ample play space for both daytime and evening enjoyment. With its ideal location offering proximity to restaurants, shopping, and easy freeway access, this home is a must-see.

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9846 W Deanna Drive Peoria, AZ 85382

$489,000

4 Beds

2 Baths

1,743 SqFt

Status Active

MLS # 6669406

Property Type Single Family Residence

Price Type --

Beautiful 4-bedroom home in the much-desired Camino A Lago community is waiting for you. It flaunts striking stone accents, a 2-car garage, & a cozy front porch for your morning coffee. Inviting hallway ushers you to the spacious great room, featuring vaulted ceilings, a calming color scheme, updated chic light fixtures, tile flooring, and plush carpet in all the right places. The open kitchen has stainless steel appliances, granite-look counters, recessed lighting, wood cabinetry, a breakfast bar, and a pantry. The primary bedroom is a retreat, offering a large walk-in closet, a full ensuite with dual sinks, and a separate tub/shower. Covered patio outback with minimal yard maintenance. APS-owned solar with a $360 credit for the year!

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11748 N 148th Avenue Surprise, AZ 85379

$489,000

4 Beds

3 Baths

2,285 SqFt

Status Active

MLS # 6672081

Property Type Single Family Residence

Price Type --

PRIDE OF OWNERSHIP TURN-KEY HOME! Corner lot! This home is ready for new owners to make it their own. Downstairs offers 1 bedroom and bathroom for in-laws or guest. Living room opens up to the kitchen and dining area. Brand-new stainless-steel appliances, new patio slider, new flooring in main living areas and new carpet in all bedrooms. Upstairs you will find a large loft area great for family entertaining and access to the large patio. 3 more bedrooms and 2 full baths upstairs. Main bedroom offers two walk-in closets. The backyard is well manicured with a children's play area and room for a pool and much more. Home has recently been repainted and refreshed. Don't let this one pass. Get in to see this GEM before it's gone.

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20925 E Sonoqui Drive Queen Creek, AZ 85142

$489,000

4 Beds

2 Baths

1,678 SqFt

Status Active

MLS # 6675565

Property Type Single Family Residence

Price Type --

Great home and property recently updated and ready to go. Flooring, bathrooms, and kitchen remodeled in 2022 as well as new roof. Open kitchen and living room area and split master bedroom floor plan. Popular Villages at Queen Creek sub-division with parks, pool and golf course. Come take a look and see.

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5346 W Posse Drive Eloy, AZ 85131

$489,000

3 Beds

3 Baths

2,139 SqFt

Status Active

MLS # 6674842

Property Type Single Family Residence

Price Type --

FULLY FURNISHED! Beautiful home w/detached casita (bedroom, bath & closet) perfect for friends visiting or a hobby room. Entertainers backyard features a gas fireplace, remote sun shades on patio, beautiful water feature & built in BBQ. Low maintenance synthetic grass, extended paver patio, orange & lime trees! Paver courtyard leading to casita & main entry. 2.5 car garage has a 4 ft ext., epoxy, built in cabinets, sink & service door w/a security door. Den has built in shelving. Spacious laundry room w/lot of cabinets. Bay windows in the master & guest room. Great room has a gas fireplace & built-in shelving. Too many upgrades to list them all. This home comes fully furnished, everything stays & is move-in-ready!

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20540 W Nelson Place Buckeye, AZ 85396

$489,000

3 Beds

2.5 Baths

1,860 SqFt

Status Active

MLS # 6680273

Property Type Single Family Residence

Price Type --

Absolutely immaculate 3 bed PLUS Den home in Verrado! The main living areas have beautiful modern tile flooring and an open concept with large great room and huge slider to backyard. Spacious kitchen includes espresso cabinets, stainless steel appliances, granite counters, island with breakfast bar, and pantry. The large primary suite has a large bath featuring dual sinks, separate walk-in shower & soaking tub & walk-in closet, and access to patio. Modern 6 panel doors throughout entire home. The spacious backyard has plenty of room! This home is located close to I-10 and all the amenities Verrado has to offer including a resort-style pool and recreation center, fitness center, multiple parks, dog parks, clubs, BB! ramadas, golf club, and more.

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10746 W Wheatridge Drive Sun City, AZ 85373

$489,000

3 Beds

2 Baths

2,153 SqFt

Status Active

MLS # 6677186

Property Type Single Family Residence

Price Type --

Stunning views for days! Welcome to this customized Forrester model w/stucco exterior positioned on 13th hole of Willow Creek Golf Course. You will love vaulted ceilings, tile floors w/carpet in bedrooms, tons of natural light, custom touches in kitchen with SS appliances & floor to ceiling cabinets. Plenty of space for entertaining, & spectacular sunsets. Boasting a huge master bedroom w/beautifully appointed ensuite, property also features 2 large guest bedrooms & guest bath in hall. Plus, the wonderful enclosed heated/cooled sun room featuring wall-to-wall windows overlooking an amazing view of the lush golf course(with 2 sliders to 2 sep patios.) WiFi remote controlled thermostat & garage door opener. In the garage, you'll find a work bench w/peg boards, & shelving a wall-mounted a/c plus heavy duty mounted overhead storage. Property is conveniently located near shopping, entertainment, restaurants & medical facilities.

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5608 W Pontiac Drive Glendale, AZ 85308

$489,000

3 Beds

2 Baths

1,610 SqFt

Status Active

MLS # 6686350

Property Type Single Family Residence

Price Type --

Desirable single level home with Pool in Arrowhead Ranch. Conveniently located near Arrowhead Mall, Restaurants & Entertainment, with easy access to 101. Open concept floorpan, with fireplace in great room. HAVC new 2021. Save on APS bills with Solar! Great Schools. Extended Flagstone patio outside next to sparkling pool and Spa. Incredible potential and Priced to sell !!

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