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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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

Open House

New

$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.

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17618 W Crocus Drive Surprise, AZ 85388

Open House

$485,000

4 Beds

3 Baths

2,341 SqFt

Status Active

MLS # 6644814

Property Type Single Family Residence

Price Type --

Super nice remodel 4 spacious Bedrooms and 3 Bathrooms. New paint, New flooring, New quartz Countertops, New Appliances, New lights and fans. New plumbing valves. New hardware. New Designed Showers with 3/4'' tempered glasses,...Split floor plan with Jack and Jill bathroom give privacy for each room. Enjoy a spacious, hardscaped, low-maintenance backyard and large 4-car driveway. Located minutes from the freeway 303, for a quick commute for your daily needs with restaurants, shopping and Costco nearby. Buyers to verify all details: schools, measurements, material facts, etc..Owner/ Agent

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1526 E Vaughn Avenue Gilbert, AZ 85234

$484,999

3 Beds

2 Baths

1,507 SqFt

Status Active

MLS # 6653473

Property Type Single Family Residence

Price Type --

THIS GILBERT GEM IS A MUST SEE! There are only 2 other single story homes in Gilbert with pools currently Active on the market in this price range. Come take a look at this Move in ready split floor plan, 3 beds, 2 full baths, Primary bedroom has brand new flooring, huge family room with cozy fireplace, dining, laundry room with fairly new high end washer and dryer INCLUDED, kitchen features fairly new high end appliances, A/C is less than 3 years old, sparkling pool, covered back patio & 2 car garage. Newer Roof! Great Location, close to Freestone Park & Recreation Center, Riparian Preserve (See Docs tab for more info). Easy freeway access (US60), close to shopping, dining & entertainment.

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17943 W Townley Avenue Waddell, AZ 85355

$484,999

4 Beds

3 Baths

2,045 SqFt

Status Active

MLS # 6691608

Property Type Single Family Residence

Price Type --

Amazing opportunity to move into a newly built(2023) move-in ready popular Sapphire open floor plan with mountain views. This home has 4 bedrooms,3 full bathrooms and teen/great room.The kitchen boast stainless-steel appliances, quartz countertops and a center island that opens up to spacious living area that has large sliders, which open up to a beautiful finished backyard landscaping. The primary suite showcase a generous walk-in closet and upgraded primary bath.Home has a Tesla charger installed in garage. Super friendly and quiet neighborhood with multiple parks that are walking distance. Minutes away from tons of shopping, new commercial development,Costco and White Tank Foothill hiking and campground. Home is nearby great schools (Legacy/American leadership academy. Don't miss out!

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18620 W El Cortez Place Surprise, AZ 85387

$484,995

3 Beds

2 Baths

1,690 SqFt

Status Active

MLS # 6613312

Property Type Single Family Residence

Price Type --

Explore this elegant Bronze home, ready for quick move-in! Included features: a generous great room with center-meet doors leading onto an inviting covered patio; a dining area; an impressive kitchen showcasing 42'' cabinets, quartz countertops, a center island, a walk-in pantry and stainless-steel appliances, including a gas range; two secondary bedrooms with a shared bath; and a lavish primary suite boasting an oversized walk-in closet and a private bath with double sinks. This home also offers 6'' x 26'' stone tile flooring, cultured marble bathroom countertops, ceiling fan prewiring, front yard landscaping and a concrete-paver driveway and walkway.

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19582 W Cambridge Avenue Buckeye, AZ 85396

New

$484,995

4 Beds

3 Baths

2,070 SqFt

Status Active

MLS # 6697500

Property Type Single Family Residence

Price Type --

Explore this thoughtfully designed Slate home, ready for quick move-in on a homesite boasting front yard landscaping and driveway pavers. Included features: an inviting covered entry; an impressive kitchen layout offering 42'' cabinets, stainless-steel appliances, quartz countertops, a center island and a roomy pantry; an open dining area; a spacious great room; a lavish primary suite showcasing a generous walk-in closet and a private bath with cultured marble countertops; a convenient laundry; a covered patio and a 2-car garage. This home also offers stone tile flooring, additional windows and ceiling fan prewiring in select rooms.

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20213 W Turney Avenue Buckeye, AZ 85396

$484,995

4 Beds

3 Baths

2,090 SqFt

Status Active

MLS # 6602692

Property Type Single Family Residence

Price Type --

The Emerald is a popular, open and entertaining floor plan. 4 Br, 2BA with an additional living room off bedroom 4. Tile in ALL areas except the bedrooms. Kitchen hosts a gas range, dishwasher, microwave, stainless steel sink fixtures and 42'' upper linen color cabs. The oversized great room has sophisticated center-meet sliding doors and additional window upgrades for more natural lighting. Last but not least, a lavish owner's suite includes a private bath and oversized walk-in closet, with a convenient laundry room nearby.

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24250 W Fraktur Road Buckeye, AZ 85326

$484,990

5 Beds

4.5 Baths

3,131 SqFt

Status Active

MLS # 6691664

Property Type Single Family Residence

Price Type --

Beautiful Brand New Home in a Highly Desirable West valley location. Features countless upgrades such as 9' ceilings, Shaw 17x17 Tile, Granite countertops in the kitchen. Whirlpool Stainless steel appliances. White shaker cabinets. Energy-efficient features throughout, WIFI & programmable thermostat. Spacious walk-in closet in the primary suite. Front yard landscaping, covered patio in the backyard. The community includes Park,basketball court and dog park. Conveniently located near the new I-10 freeway, schools, shopping and dining.

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1004 Avenida Ciervo -- Rio Rico, AZ 85648

$484,900

3 Beds

2.5 Baths

2,362 SqFt

Status Active

MLS # 6664459

Property Type Single Family Residence

Price Type --

MOUNTAIN VIEWS! Embrace the opportunity to become the proud owner of this meticulously maintained haven in Rico Rico! Prepare to be impressed by the inviting interior, featuring tile flooring, vaulted ceilings, designer paint, & surround sound. Flawlessly flowing open layout offers large sliding glass doors that lead to the back patio, creating an effortless indoor/outdoor connection. Chef's kitchen is a highlight, boasting recessed & pendant lighting, ample cabinets, a walk-in pantry, stainless steel appliances, granite counters & backsplash, & an island w/a breakfast bar. Romantic main retreat includes direct outdoor access, an ensuite w/dual sinks, & a walk-in closet. Lastly, the serene backyard provides a full-length covered patio & a convenient storage shed. Don't wait any longer!

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18565 W Paseo Way Goodyear, AZ 85338

$484,900

4 Beds

2 Baths

1,802 SqFt

Status Active

MLS # 6689153

Property Type Single Family Residence

Price Type --

Located within the esteemed Estrella master planned community, this exquisite home boasts 4 beds & OWNED solar with gas heated pool & spa. Positioned at the end of a tranquil cul-de-sac, adjoining expansive natural surroundings. The interior layout includes a versatile flex room & open plan design. Upgrades abound: surround sound inside & out, remodeled kitchen, interior paint, waterproof flooring throughout, cool decking & painted exterior. The master suite is thoughtfully separated from the other beds, ensuring privacy. Outside, the backyard beckons with its covered patio, speakers by spa, heated pool & spa adorned with sail shades, ample patio space, artificial grass & panoramic mountain views. This home offers a wealth of amenities amidst its stunning surroundings.

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8841 W Watkins Street Tolleson, AZ 85353

$484,900

4 Beds

3 Baths

2,363 SqFt

Status Active

MLS # 6693968

Property Type Single Family Residence

Price Type --

You don't want to miss this beautiful two-story home awaiting its new owners! Offering a low-care landscape, a 2-car garage, & a delightful front porch. The welcoming interior boasts a living/dining room w/high ceilings, designer's paint, charming light fixtures, & wood-style vinyl flooring t/out. Sizable open layout has a media niche & access to the backyard. Kitchen is equipped w/ample counter space, wood shaker cabinetry, recessed lighting, a pantry, & an island w/a breakfast bar. Find a cozy loft ideal for a hobby space! Primary bedroom has balcony access, a full ensuite w/dual sinks & a walk-in closet. The entertainer's backyard invites you to unwind & have fun! It provides a covered patio, a built-in BBQ, a fire pit, & a crystal blue pool & spa. Hurry! This gem will not disappoint!

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3719 E Inverness Avenue Mesa, AZ 85206

New

$484,900

3 Beds

2.5 Baths

1,935 SqFt

Status Active

MLS # 6697264

Property Type Single Family Residence

Price Type --

Must see this beautiful home conveniently located off the 60 freeway & minutes away from DANA PARK VILLAGE SQUARE for excellent shopping and dining experience! Freshly painted inside & new carpet this month 4/2024! 3 bedrooms plus a loft & 2 bathrooms upstairs. You will fall in love with the vaulted ceilings in the spacious living room. The kitchen offers granite countertops, freshly painted white cabinets with SS appliances. Gorgeous neutral colored wood look plank tile. Epoxy flooring in the garage Plus newer roof and air conditioning unit makes this home move in ready! You will also love the cul-de-sac street that it sits on & the north-south exposure. Enjoy Summer fun at the community pool & then lunch at near by restaurant's! This home is CLEAN and BEAUTIFUL, MAKE IT YOURS TODAY!

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