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

18455 N 167th Lane Surprise, AZ 85374

$480,000

3 Beds

2 Baths

2,061 SqFt

Status Active

MLS # 6687490

Property Type Single Family Residence

Price Type --

Welcome to your amazing 3 bedroom (plus a den) / 2 bath home in the very desirable Bell West Ranch subdivision in Surprise. Wonderful open floorpan features a great room perfect for entertaining. Nicely remodeled with vinyl wood plank flooring throughout. Kitchen is designed with white quartz countertops, white painted cabinets, and stainless appliances. Modern style ceiling fans and lighting fixtures are updated throughout the home. The 3 car garage provides ample storage. Very large backyard with RV gate and RV parking. With convenient access to shopping, dining, and entertainment, this home offers the ideal combination of comfort and convenience.

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849 W Campbell Avenue Phoenix, AZ 85013

$480,000

3 Beds

1.5 Baths

2,030 SqFt

Status Active

MLS # 6685820

Property Type Single Family Residence

Price Type --

Vintage charm meets modern amenities in this incredible wood-adorned home located in the enchanting Melrose District. Centrally located with easy access to I-10 and I-17 freeway, Grand Canyon University, and Steele Indian School Park. This beautiful updated modern home was remodeled in 2016 with a bright open floor plan. Concrete floors, white cabinetry, sleek countertops, and stainless steel appliances in the tasteful kitchen! Custom redwood built-ins and beams add extra character! 3 spacious bedrooms and updated bathrooms. Enjoy the outdoor covered patio with built-in grill and great yard with grass! There is a storage shed and more storage in an enclosed storeroom off the carport! This is a home that offers all the uniqueness you want with all the functionality you need.

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15239 W Bloomfield Road Surprise, AZ 85379

$480,000

3 Beds

2 Baths

1,907 SqFt

Status Active

MLS # 6684498

Property Type Single Family Residence

Price Type --

You have found the PERFECT home in Marley Park featuring all the character and features you've come to expect from a Marley Park home. Step through the turret entry with a security door into a meticulously landscaped backyard. The interior boasts a spacious living area with custom built in shelving and electric fireplace. The open kitchen is complete with a large island, granite countertops, updated tile backsplash, pantry, upgraded white cabinets with crown molding, and stainless steel appliances. The dining area offers picturesque views of the lush greenery at Founders Park just across the street. Enjoy the elegant diagonal set tile flooring with wood-look tile in the main bedroom. This home is equipped with a gas water heater, gas dryer hook-up, gas heat, and a convenient gas stub outside for your grill or future hot tub. It is also pre-plumbed for a water softener. The main bedroom suite features a generous walk-in closet, granite counters, a separate tub and shower, and dual vanities. The second bathroom also boasts granite counters and a tub/shower combo. The garage features epoxy flooring and a service side entry door for added convenience. Outside, the spacious backyard offers an expansive pavered patio, the iconic Marley Park brick wall, and ample space for a future pool installation. Impeccably maintained and move-in ready, this home caters to the most discerning buyers. All of this located in the amazing community of Marley Park, featuring three community pools and 21 unique parks connected by an Arbor Walk and within walking distance to schools.

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9599 E Fairway Boulevard Sun Lakes, AZ 85248

$480,000

2 Beds

2 Baths

2,531 SqFt

Status Active

MLS # 6690727

Property Type Single Family Residence

Price Type --

Steal at this price. This is the only home available for less than $190/Sq.Ft in Sun Lakes. Corner Lot with Large pull through driveway. Covered Patio in Front Entrance. Large covered patio in backyard with RV Gate. Storage Shed in backyard. Lots of storage cabinets in Utility hall & Big Storage room off of Garage.NEW interior Super Dunn Edwards paint throughout interior. NEW capret and pad. Whirlpool GOLD built in Oven and microwave, Refrigerator, dishwasher and glass cooktop. NEW American Standard Stainless Steel Garbage disposal. NEW Luxury Vinyl Tiles, Tiles in Kitchen, bathrooms, utility hall and family room. Custom Medicine cabinets/mirrors in both bathrooms, Custom Walk-in Showers in both bathrooms, NEW remote control HUNTER fans in both bedrooms and office/den. LED can lights in Kitchen, Vestibule and Master Bath. NEW elastomeric coating on Garage Roof, NEWER insulation in entire attic. Water Softner Loop, Reverse Osmosis water filter in Kitchen. Entertainment Wall with Cable pass throughs and pre-wired for 4 speaker surround sound. High end upgraded kitchhen cabinets including seperate bar and sink. Walk in closets in both bedrooms. Short walk to beautiful gof courses and multiple lakes. NEW LED exterior lights on garage, entry patio, rear patio, and BBQ area. NEWER insulation in attic. Stucco block wall in front and back yards. At home mail delievery. Central heating and cooling with extra room AC's in family room and both bedrooms. Easy access to interstate I-10 and state route 87. Close to restaurants and shopping.

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17143 S 180th Lane Goodyear, AZ 85338

Open House

New

$480,000

2 Beds

2 Baths

1,695 SqFt

Status Active

MLS # 6688548

Property Type Single Family Residence

Price Type --

This home has much to offer and is a must see if you are looking for an active adult community with a tranquil setting. You will find a great blend of plentiful activities and calming leisure. As you walk into this luxurious home you will instantly feel at ease. The gourmet kitchen, with its sleek granite countertops and staggered cabinets, is perfect for entertaining and is sure to impress your family and friends. The rooms are spacious and sized for comfort. Step out to the expansive backyard that has breathtaking views perfect for that morning cup of coffee or evening view of the sunset. Additionally, the serene mountain panoramic view will serve as a constant reminder of the beauty Arizona has to offer. It will be easy to image your next chapter starting right here.

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6605 W Whispering Wind Drive Glendale, AZ 85310

Open House

New

$480,000

3 Beds

2 Baths

1,663 SqFt

Status Active

MLS # 6696849

Property Type Single Family Residence

Price Type --

Welcome to this charming home, where comfort meets convenience! Providing 3 beds, 2 baths, & a 2-car garage. Discover an inviting interior featuring tons of natural light, a neutral palette, tile & wood-look flooring in all the right places, and vaulted ceilings that add to the airy feel. Perfect for gatherings & entertaining, you'll love the separate family room and a desirable great room w/surround sound! The kitchen boasts built-in appliances, a pantry, ample wood cabinetry, and a pass-through window. Enter the main bedroom to find plush carpet, and a private bathroom. Storage closets are added perks! Outback, you have a covered patio, well-laid pavers, garden bed, storage shed, and additional seating area. Near A+ rated schools, CCV, Lifetime, shopping centers and more!

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3938 E Sweetwater Avenue Phoenix, AZ 85032

Open House

$480,000

3 Beds

2 Baths

1,855 SqFt

Status Active

MLS # 6690532

Property Type Single Family Residence

Price Type --

Step into comfort & convenience w/ this home boasting luxury vinyl plank flooring throughout the home. Fresh interior paint provides a crisp & modern look. The heart of the home features a chef's kitchen equipped w/ newer appliances w/ a view of your sparkling pool & recently installed artificial turf in the backyard- a low maintenance outdoor space that looks perfect year round. Comfort is key, w/ a new evaporative cooler installed in 2022 to keep you cool during the warm summer months, while ceiling fans in every room ensure optimal airflow & energy efficiency.The primary & secondary bathrooms are tastefully updated w/ new vanities, offering both style & storage solutions. Additionally, patio posts were replaced in 2018, ensuring the outdoor space is as sturdy as it is inviting. For added convenience, a stackable washer and dryer set were purchased in 2023, offering modern laundry amenities right at your fingertips. Nestled next to the existing Road Runner park with lakes, tennis courts, and expansive spaces, this home is poised to benefit from enhanced amenities and increased value brought forth from the up and coming Red Development (formerly PV Mall). Don't miss your chance on this lucrative asset and enriching lifestyle that awaits you!

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11528 E Sebring Avenue Mesa, AZ 85212

$479,999

3 Beds

2 Baths

1,969 SqFt

Status Active

MLS # 6693482

Property Type Single Family Residence

Price Type --

Simple irresistible! This charming 3 bedroom, 2 bathroom home located in the Desert Valley Community is the one you've been looking for. Discover an impressive living room featuring glossy wood-look tile floor, neutral color palette, recessed lighting, and arched doorways. The well-appointed kitchen boasts stainless steel appliances, granite counters, wood cabinetry, a convenient center island, and two breakfast bars. End your long and busy day in the main bedroom, offering a full ensuite with dual sinks, a separate tub/shower, and a walk-in closet. You will find a lovely backyard showcasing easy-care landscape and two covered patios ideal for outdoor relaxation! What's not to like? Don't let this opportunity slip by!

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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!

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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!

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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

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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.*

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