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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4154 E Alamo Street San Tan Valley, AZ 85140

$483,000

3 Beds

2 Baths

1,695 SqFt

Status Active

MLS # 6683372

Property Type Single Family Residence

Price Type --

Welcome to luxury living at its finest! This stunning home boasts impeccable condition and exquisite features, including a heated pool and spa with state-of-the-art technology for ultimate relaxation and convenience.Enjoy breathtaking peekaboo views of the majestic Superstition Mountains right from your backyard oasis. With neutral tile flooring throughout and plush low pile carpeting in the bedrooms, comfort and style blend seamlessly in every corner of this home.Entertain with ease in the spacious kitchen, equipped with NEW SS appliances and ample workspace for culinary creativity. Whether hosting intimate gatherings or lively soirées, this kitchen is sure to impress.Convenience meets modernity with a brand new garage door opener featuring Wi-Fi capability, ensuring effortles

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18602 W Honeysuckle Drive Surprise, AZ 85387

$482,995

3 Beds

3 Baths

2,092 SqFt

Status Active

MLS # 6645451

Property Type Single Family Residence

Price Type --

Welcome to this eye-catching Emerald home! Included features: a covered entry; a spacious great room with center-meet doors leading onto a covered patio; a dining nook; a thoughtfully designed kitchen boasting 42'' upper cabinets, quartz countertops, a center island and stainless-steel appliances, including a gas range; a convenient laundry; a lavish primary suite showcasing an oversized walk-in closet and a private bath; and a second suite offering a private entry, a living room, Laundry room closet, a bedroom and an attached bath. This home also has stone tile flooring, cultured marble bathroom countertops, added windows, ceiling fan prewiring, front yard landscaping and a concrete-paver driveway and walkway.

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20016 W Exeter Boulevard Litchfield Park, AZ 85340

$482,995

4 Beds

2 Baths

2,200 SqFt

Status Active

MLS # 6663207

Property Type Single Family Residence

Price Type --

The ranch-style Augusta offers thoughtfully designed living space with a range of personalization possibilities. The foyer leads to an open floor plan with a kitchen, a great room, a dining room and a covered patio. Looking for extra space for entertaining? Add a club room and an extended covered patio! You'll find a spacious owner's suite next to the dining room, showcasing a walk-in closet and an attached bath that can be personalized with three deluxe options. This plan also offers two bedrooms and a bath; for more space, choose another bedroom in lieu of garage storage. Additional options include gourmet features in the kitchen, alternate kitchen layout, a corner-meet door in the great room, multi slide and center meet door options and a study instead of third bathroom.

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701 S Del Rancho -- Mesa, AZ 85208

$482,705

3 Beds

2.5 Baths

1,784 SqFt

Status Active

MLS # 6568826

Property Type Single Family Residence

Price Type --

$22,000 in Builder Incentives (must use Preferred Lender) for Buyer to use on this NOW COMPLETED inventory home! This 3 bedroom, 2.5 bath home features a Great Room concept. Beautiful 42'' Ash in color shaker style cabinets in kitchen with a large island.....perfect for entertaining! 12X24 tile flooring entire first level! Granite Countertops. Primary bedroom has TWO separate walk in closets! Diamond Court, built by Newmark Homes, is an 18 home community nestled in a prime location in Mesa with lots of new retail/restaurants close by!

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13043 W Wildwood Drive Sun City West, AZ 85375

$482,500

3 Beds

2 Baths

2,396 SqFt

Status Active

MLS # 6653857

Property Type Single Family Residence

Price Type --

Huge $92K price reduction! Stunning completely remodeled 3 bedroom home on a large fenced corner lot in the heart of Sun City West. Open floor plan features new wood plank flooring, windows, interior/exterior doors, interior/exterior paint, and trim/hardware/lighting throughout. Expanded kitchen with new white shaker soft close cabinetry, large island with quartz ''waterfall'' edges, stainless appliances, and marble backsplash. Spacious primary suite and luxurious private bath with extended walk-in shower, dual sinks, new cabinets/tile, and 2 closets. Secondary bedrooms are adjacent to hall bath also featuring a walk-in shower and new finishes. Large finished utility room off kitchen would make a great craft room, office space, or storage. See upgrade list for more details. A must see!

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78 W Shamrock Street Gilbert, AZ 85233

$482,500

4 Beds

2 Baths

1,702 SqFt

Status Active

MLS # 6687494

Property Type Single Family Residence

Price Type --

Welcome to this spacious and inviting four-bedroom plus den home, featuring a family room and great room, offering a sprawling 1,702 sqft of living space in a prime location. The home features ceramic tile flooring throughout the entry, hallways, kitchen, utility room, bathrooms, and family room, exuding both style and durability. The kitchen boasts custom tile on the island and breakfast room, along with tiled countertops, backsplash, and a gas stove. Outside is a covered patio that lets you enjoy the view of the private backyard. Conveniently located near a 7-acre park with playgrounds, exercise trails, and basketball courts, as well as close proximity to freeways, malls, and dining, this home offers the ideal combination of comfort, New Carpet in all bedrooms & front living area.

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9912 E Tamery Avenue Mesa, AZ 85212

$482,020

3 Beds

2.5 Baths

1,785 SqFt

Status Active

MLS # 6694649

Property Type Single Family Residence

Price Type --

This stunning home is NOW AVAILABLE in one of Eastmark's newest neighborhoods, nestled within Mesa's celebrated masterplan. Situated conveniently close to The Great Park, this single-family residence, Plan 2, boasts three bedrooms, two and a half bathrooms, an upstairs laundry, and a 2-car garage. Home includes designer upgrades specifically selected for this home. Explore the amazing amenities in this dream community, boasting 77 parks, a stunning pool, clubhouse, orange monster play area, skatepark, splash pad, baseball, softball and soccer fields, disc golf, future pickle ball courts and easy access to highways and shopping.

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1281 Calle Tubatana -- Rio Rico, AZ 85648

$482,000

4 Beds

3.5 Baths

2,739 SqFt

Status Active

MLS # 6672776

Property Type Single Family Residence

Price Type --

Welcome to this architectural masterpiece nestled atop a gentle hill, offering sweeping 360* vistas that will leave you breathless. This three story residence boasts a harmonious blend of sleek design, luxurious finishes and an abundance of natural light. This open-concept connects the living, dinning, and kitchen spaces. The chef's kitchen features a full gas stove, plus extra built in oven, a large center island and plentry of cabinet & quartz countertop space. The master suite is a sanctuary of tranquility, with a large hidden walk-in closet, and spa like bathroom. Multiple balconies, decks and patios provide the perfect spot for morning coffee, sunset cocktails or stargazing!

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17065 W Molly Lane Surprise, AZ 85387

$481,800

5 Beds

3 Baths

2,786 SqFt

Status Active

MLS # 6690964

Property Type Single Family Residence

Price Type --

On the hunt for a new home this year? Here's a wonderful home in the heart of Sunrise that just released to the MLS. Very spacious high performance Cottonwood plan. This home is gorgeous and perfect for a family or busy professionals who are ready to unpack, hang up a few pictures, and keep living life to its fullest! This popular floor plan includes Gourmet Kitchen, Home Automation, Geofencing, whole house air purification system, and 5 bedrooms with a huge loft ! All rooms are very spacious. Approx. June closing.

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5544 W Willow Ridge Drive Laveen, AZ 85339

$480,990

5 Beds

3 Baths

2,668 SqFt

Status Active

MLS # 6679551

Property Type Single Family Residence

Price Type --

Beautiful Brand New Home in a Highly Desirable Central Location - Featuring countless upgrades such as 9' ceilings, Shaw - Milan - Surf 17x17 Tile, Granite countertops in the kitchen. Whirlpool Stainless steel appliances. White cabinets. Energy-efficient features throughout, Programmable thermostat, gas heater, gas range. Spacious walk-in closet in owners suite. Front yard landscaping, covered patio in the backyard. Spectacular Mountain Views! Minutes from downtown Phoenix in a master-planned community featuring walking trails, greenbelts, neighborhood parks and playgrounds. Conveniently located off the Loop 202 and near schools, shopping and dining!

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11466 W Arron Drive Youngtown, AZ 85363

$480,900

4 Beds

2.5 Baths

2,165 SqFt

Status Active

MLS # 6675509

Property Type Single Family Residence

Price Type --

Come home to the beautiful, two-story Snowflake, featuring an open-concept layout with four bedrooms and two-and-a-half bathrooms. This home showcases a spacious master suite complete with a large walk-in closet, an upstairs loft area, laundry room, 3 additional bedrooms and a second full bath with a dual shower and bathtub. This new home includes upgrades such as energy-efficient kitchen appliances, a fully-fenced backyard, covered back patio, with ceiling fan, front yard landscaping and an attached two-car garage. The living space opens up to the kitchen with a center island, making it perfect for entertaining friends and family. This home is located in a family friendly neighborhood with safety in mind. This home is located on a premium oversized lot.

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20906 W Ridge Road Buckeye, AZ 85396

$480,000

3 Beds

2 Baths

1,915 SqFt

Status Active

MLS # 6688827

Property Type Single Family Residence

Price Type --

This beautifully maintained 3-bedroom single story has granite counter tops in the kitchen with custom features in the cabinets, gas stove, tile on the diagonal. Fireplace is surrounded by stone. Andersen Windows and Screens 2017. The patio is private with a custom mural by a local artist. New HVAC 2023. Electric shades on the patio, post tension construction, new PVC irrigation. NUOVO water system. There is a list of upgrades in the Document Tab. This is a home you need to see to enjoy all the features.

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