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

15624 W Gelding Drive Surprise, AZ 85379

$479,999

4 Beds

2.5 Baths

2,408 SqFt

Status Active

MLS # 6669935

Property Type Single Family Residence

Price Type --

Worth the look! Home has had some upgrades recently and could use a few more. 4 bedroom, 2.5 bath, den/office and loft area! Large greatroom open to kitchen area. Kitchen has tons of countertop space, stainless appliances,, walk in pantry and views of the entire backyard! Large Primary bedroom and bathroom, 2 sinks, 2 large walk-in closets and private toilet room. Newer flooring in most of the home, the 3 bedrooms and stair need carpeting! home offers blinds, ceiling fans, upgraded flooring. Home needs a little TLC, nothing major. 2 car garage w/ open and built-in cabinets. Oversized backyard was made for entertaining! Covered patio, green turf, storage sheds and mature trees. Minutes away from dining, shopping, and freeway for easy access to anywhere with the 303 freeway close by!

View Property

7908 S 7th Way Phoenix, AZ 85042

$479,999

3 Beds

2 Baths

1,734 SqFt

Status Active

MLS # 6671421

Property Type Single Family Residence

Price Type --

Welcome to your dream home in the gated Villages at Verona! This 3-bed, 2-bath plus den/office boasts upgrades throughout: wood-look tile, quartz countertops, LED lighting, stainless appliances, and more. Enjoy sunset views from the landscaped backyard. Community pool, playgrounds, and proximity to Downtown Phoenix, Sky Harbor, and hiking trails. Plus, this property qualifies for down payment assistance, making luxury living more accessible. Don't miss out on the open floor plan and urban convenience!

View Property

15562 W Hackamore Drive Surprise, AZ 85387

New

$479,990

4 Beds

2 Baths

1,837 SqFt

Status Active

MLS # 6696951

Property Type Single Family Residence

Price Type --

Come to Mason Ranch II in Surprise and discover our GRAND OPENING INCENTIVES!! Come and see this beautiful 3501 floor plan with 3 bedrooms, 2 baths, and 2-car garage with all appliances included!! This home is enriched with numerous upgrades, including stone-gray cabinets with hardware, quartz kitchen countertops, custom design full kitchen backsplash, large kitchen island, large single stainless steel bowl sink, stainless steel appliances, gas range, tile flooring, tankless hot water heater, 9' ceilings, 8' interior doors, soft water loop, a comprehensive smart home package, enhanced electrical package with cat 6 wiring, pre-wire ceiling fans in all bedrooms, great room and patio, pre-wire for pendant lights at kitchen island, garage keyless entry pad, and more! Est. move in May 2024

View Property

4456 W Josephine Street San Tan Valley, AZ 85144

New

$479,990

5 Beds

3 Baths

2,406 SqFt

Status Active

MLS # 6697457

Property Type Single Family Residence

Price Type --

Brand new, energy-efficient home available by May 2024! There is plenty of room for a growing family in the spacious five bedrooms of the Avery. White cabinets with hardware, cream/black granite countertops, travertine-look tile flooring and warm grey carpet in our Crisp package. Enjoy secluded primary suites at San Tan Groves in San Tan Valley. San Tan Groves is conveniently located minutes from San Tan Mountain Regional Park, making morning hikes easy! This community boasts ample storage and a 5 bedroom layout. Enjoy dining and entertainment just a few miles away. We build each home with innovative, energy-efficient features that cut down on utility bills so you can afford to do more living.*

View Property

4640 W Hannah Street San Tan Valley, AZ 85144

$479,990

4 Beds

2 Baths

2,140 SqFt

Status Active

MLS # 6511791

Property Type Single Family Residence

Price Type --

BRAND NEW, energy - efficient home available NOW! The Onyx floorplan offers an open-concept plan with 4 bedrooms and 2 bathrooms. This home has an extended back patio perfect for entertaining and lets in plenty of natural light. Enjoy the white shaker cabinets, soothing granite counter tops in kitchen, and 15 x 15 inch tile floors everywhere but the bedrooms and closets where you will find soft, plush carpet. North/south facing home site with north back yard on over-sized lot. The extra storage room makes a great home for household cleaning items, holiday decor, and backpacks. Impressive Walk-In Closet in Primary Suite tucked away in back of home.

View Property

35766 N Moro Lane San Tan Valley, AZ 85144

$479,990

4 Beds

2 Baths

2,140 SqFt

Status Active

MLS # 6561027

Property Type Single Family Residence

Price Type --

BRAND NEW energy-efficient home ready NOW! The Onyx floorplan offers an open-concept plan with 4 bedrooms, 2 bathrooms and a 2-car garage. The extra storage room makes a great home for household cleaning items, holiday decor, and backpacks. This home is built on an over 7,700 sqft home site on a corner. It offers decadent dark stained Umber wood cabinets throughout the home, light and dark grey granite counter tops with cream color sprinkled in. 12 x 12 tile everywhere in home except bedrooms and closets which have soft plush carpet. Impressive Walk-In Closet in Primary Suite tucked away in back of home. Are you ready to buy your new home?

View Property

1977 E Georgia Ruth Lane San Tan Valley, AZ 85140

$479,990

4 Beds

3 Baths

2,668 SqFt

Status Active

MLS # 6678699

Property Type Single Family Residence

Price Type --

New Construction!! Nestled perfectly in the sought after city of San Tan Valley. Adorable 4 bedroom 3 bathroom home with a 2 car garage. Our Ashton Woods Coastal Collection, spacious owner's suite, stainless steel appliances, granite kitchen countertops and classic shaker style cabinets makes this a place to call home. Conveniently located North of Combs Rd and Schnepf Rd. As with all of our homes, this one is also constructed as ''Energy Star'' for remarkable comfort, energy efficiency and environmental sustainability!

View Property

4524 N 91st Drive Phoenix, AZ 85037

$479,990

4 Beds

3 Baths

1,968 SqFt

Status Active

MLS # 6655543

Property Type Single Family Residence

Price Type --

BEAUTIFUL CORNER LOT SINGLE LEVEL HOME IN A GATED COMMUNITY. FEATURES 4BEDS, 3BATHS, 2CAR-GARAGE, AND A BONUS ROOM. UPGRADED 42' CABINET, STAINLESS-STEEL APPLIANCES, REFRIGERATOR, AND CORDS COUNTERTOPS. TILE FLOORING ALL THE RIGHT PLACE. INSIDE LAUNRY ROOM WITH WASHER/DRYER. LOW MAINTENANCE FRONT/BACKYARD WITH PAVER AREA. CONVENIENTLY LOCATED NEAR LOOP 101, 5 MINUTES DRIVE TO THE WESTGATE ENTERTAINMENT DISSTRICT WITH MANY SHOPPING ANE RESTAURANTS NEAR BY THAT MAKE HOME IS GREAT FOR FAMILY OR INVESTMENT POTENTIAL. DON'T FORGET TO CHECK OUT MANY SMART FEATURES IN THE HOME SUCH AS SMART LOCK, MYQ GARAGE DOOR OPENER, PROGRAMABLE THERMALSTAT WITH ALL WIFI CONNECTIONS.

View Property

10814 W Luxton Lane Tolleson, AZ 85353

$479,990

4 Beds

3 Baths

2,075 SqFt

Status Active

MLS # 6680643

Property Type Single Family Residence

Price Type --

FULLY UPGRADED MODEL HOME FOR SALE!! This stunning Craftsman elevation - 4 bedroom, 3 bathroom plus a den is our model home which included our signature level Rockwell Palette featuring 42 inch white upper cabinets with 3 inch crown molding, 2-tone paint, ceiling fans in every bedroom and plenty more! Pull into your pavered driveway, step into your walkway and feel secure with your smart home security ring package upon entry. The Rockwell features 6X36 tile flooring, dark grey carpet pair well with a one of a kind kitchen with a granite countertop and beach sand backsplash. Step into the 8 ft door and witness the foyer space with 9 ft ceilings throughout the home. Finishes include matte black fixtures with rectangular vanity bowls in every bathroom.

View Property

40870 W Agave Road Maricopa, AZ 85138

$479,990

3 Beds

2 Baths

1,987 SqFt

Status Active

MLS # 6399861

Property Type Single Family Residence

Price Type --

THIS HOME IS READY FOR MOVE-IN! It's the popular Belice - 3 bedrooms, 2 baths and 3 car tandem garage. We're building this home with an 8' garage door, garage service door, 12x8 sliding glass door off of the great room that leads out to your extended covered patio. Gas appliance package with microwave. Lausanne Espresso cabinets with 42'' upper cabinets in kitchen. Himalaya white granite countertops in kitchen and the enhanced kitchen island with matching backsplash. Upgrade flooring includes 12x24 Linden Pointe Grigio tile in all areas of the home except bedrooms/closets. Owners bath has separate tub and shower with Artic white tile surrounds. Dual sinks at bath 2. Interior two tone Gray paint throughout and so much more. Water Company is Santa Cruz Water Company and Sewer.

View Property

11215 W Marguerite Avenue Tolleson, AZ 85353

$479,990

4 Beds

3 Baths

2,274 SqFt

Status Active

MLS # 6672358

Property Type Single Family Residence

Price Type --

Below Market Financing Available!!!!!!!! This single-story home has a smart layout that is perfect for families who need privacy. Three bedrooms are located at the front of the home, along with a versatile living room. Down the hall is the main living area with a Great Room, kitchen and dining area, while the owner's suite is in the back for added privacy. Photos are renderings of a model home, not the actual home.

View Property

22377 N 76th Drive Peoria, AZ 85383

$479,990

3 Beds

2 Baths

1,543 SqFt

Status Active

MLS # 6680311

Property Type Single Family Residence

Price Type --

Beautifully remodeled home ready to move in located in very desirable Fletcher Heights neighborhood! This home has ALL NEW carpet, paint (walls, ceilings, doors, trim), stainless steel appliances, plumbing fixtures, ceiling fans, window coverings and more! Home is situated on a large homesite with great backyard space and lots of real grass. This is a must see you won't be disappointed!

View Property