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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16048 W El Cortez Place Surprise, AZ 85387

$466,990

4 Beds

2 Baths

2,139 SqFt

Status Active

MLS # 6594475

Property Type Single Family Residence

Price Type --

Brand new, energy-efficient home available NOW! This single-story features a split floorplan with the primary suite tucked away in the back of the home. Umber cabinets with white/grey granite countertops and multi-tone carpet in our Elemental package. Paloma Creek is now pre-selling in Surprise. There's fun for the whole family at the community clubhouse, pool, outdoor kitchen, and fitness center. Each energy-efficient home comes standard with features that allow your whole family to live better and breathe easier too.* Visit Paloma Creek today. Each of our homes is built with innovative, energy-efficient features designed to help you enjoy more savings, better health, real comfort and peace of mind.

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19617 W Cambridge Avenue Buckeye, AZ 85396

$466,638

4 Beds

3 Baths

2,070 SqFt

Status Active

MLS # 6675995

Property Type Single Family Residence

Price Type --

Discover this ranch-style Agate home, ready for quick move-in! Included features: a covered entry; a large flex room; a corner kitchen boasting an alternate layout, 42'' cabinets, stainless-steel appliances, an island and an adjacent dining room; an inspired great room; a serene primary suite showcasing a sizable walk-in closet and a private bath with double sinks; a central laundry; two secondary bedrooms; a full shared bath and a charming covered patio. This home also offers 7'' x 22'' stone tile flooring, cultured marble bath countertops, ceiling fan prewiring and additional windows in select rooms, coach lights, front yard landscaping and concrete pavers at the driveway and walkway.

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634 N 48th Street Phoenix, AZ 85008

$466,000

5 Beds

2 Baths

1,715 SqFt

Status Active

MLS # 6655149

Property Type Single Family Residence

Price Type --

Welcome to your dream home in the heart of Phoenix! Located only minutes from the freeway, this stunning 5-bedroom 2-bathroom home offers the perfect blend of modern luxury and desert charm. As you step inside, you'll be greeted by an open and spacious floor plan that's ideal for both comfortable family living and elegant entertaining. The living room boasts ample natural light creating a warm and inviting atmosphere. The gourmet kitchen is a chef's delight, featuring granite countertops, stainless steel appliances, and ample counter space. Enjoy the Arizona sunshine in your large backyard with endless potential. Perfect for family gatherings and outdoor relaxation. Spacious laundry room with washer and dryer included!

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17798 W Running Deer Trail Surprise, AZ 85387

$465,995

4 Beds

3 Baths

2,040 SqFt

Status Active

MLS # 6658921

Property Type Single Family Residence

Price Type --

This single level Saphire is so inviting and well thought out. The home features 4 Beds, 3 Baths with a bonus den/teen room and a 3-car garage. The Sapphire floor plan welcomes guests with pavers and a covered entry. Off the foyer, you'll find two bedrooms and a full bath. Heading towards the great room you will find the fourth bedroom and den/teen room with a dedicated bath. The home features 9 ft ceilings, 8'6'' paneled interior doors and an extended entry which leads to an open layout kitchen featuring a large upgraded center island, 42-inch upper cabinets, gas SS oven range and a convenient dining area. The great room is nicely sized with a center-meet double sliding door giving the space a light and open feel gracefully leading to the covered patio. The split floor plan features an owner's suite with two walk-in closets and an attached bath. Located in the fantastic community of Desert Oasis features parks, playgrounds and a community pool. Close to the new Frys marketplace with convenient access to the Loop 303 and US-60, nearby Lake Pleasant, Surprise Stadium, Wildlife Zoo, Aquarium & Safari Park in the fast-growing NW Valley. This beautiful home is done right and has so much to offer!

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12565 N 175th Drive Surprise, AZ 85388

New

$465,900

3 Beds

2 Baths

1,836 SqFt

Status Active

MLS # 6688259

Property Type Single Family Residence

Price Type --

Beautiful property nestled on a desired corner lot! This gem displays a well-maintained front yard and a 2-car garage for your vehicles. The delightful interior features a spacious open floor plan, highlighting tall ceilings, a soothing palette, tile flooring, and soft carpet in all the right places. The kitchen is fully equipped with ample counter space, a walk-in pantry, rich wood cabinetry, recessed lighting, and an island with a breakfast bar, great for morning conversations. Double doors reveal a generous main retreat, offering a private bathroom with dual sinks and a large walk-in closet. Out the back, you'll find a covered patio for relaxing evenings after a busy day. Conveniently situated near schools, shopping, and parks. Stop searching!

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530 Sunny Cove Heights Road Wickenburg, AZ 85390

$465,900

3 Beds

2.5 Baths

1,680 SqFt

Status Active

MLS # 6689204

Property Type Single Family Residence

Price Type --

Terrific Territorial Style home under $500K! Home sits on slightly over 1ac. Plenty of room on the side yard for RV, trailers, etc...The lower portion of the property is prime location for detached storage or maybe even a nice workshop. Home features 3 BD 2.5 BA, split floor plan. Nice bright kitchen with all tile counter tops, breakfast bar, stainless appliances. Great room features a nice natural gas Beehive FP for warmth & ambiance. Master is spacious w/ large walk-in closet, bath featuring separate shower/tub, dbl sinks. Back covered patio, front covered patio along with a 2-car garage. This home has super easy care yard with virtually no worries! Long all concrete driveway, some mountain views too. Great location & ready for it's new owners! Call for additional information.

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1131 E Lowell Avenue Gilbert, AZ 85295

$465,900

3 Beds

2.5 Baths

1,575 SqFt

Status Active

MLS # 6673558

Property Type Single Family Residence

Price Type --

The interior boasts an inviting open floorplan, encompassing 3 bedrooms, 2.5 baths, and a 2-car garage. Revel in the charm of beautiful wood and tile flooring, complemented by a tasteful two-tone paint scheme. The well-appointed kitchen includes a pantry, and all bedrooms feature spacious walk-in closets, with the master bedroom boasting an impressive two walk-in closets. Updated blinds and ceiling fans enhance each bedroom. Enjoy the home's North/South exposure and take advantage of its proximity to a playground, tennis courts, and an elementary school within walking distance. Spectrum, a highly coveted community in Gilbert, offers convenient access to amenities such as the 202 Expressway, San Tan Mall, Old Town Gilbert, golf courses, and much more!

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10210 N 54th Drive Glendale, AZ 85302

$465,500

3 Beds

2.5 Baths

2,129 SqFt

Status Active

MLS # 6686502

Property Type Single Family Residence

Price Type --

Oakdale is a quiet Glendale neighborhood located conveniently nine miles or less to major freeways in all directions. This home has a cozy front garden area. As you enter the home you are greeted by a vaulted pitched ceiling, a lovely corner fireplace & large windows that look onto the front garden area. Beyond the living room is an Arizona room with an expansive view of the backyard. This neighborhood has NO HOA. The spacious bedrooms are a split style with the master suite located towards the back of the home off the main living area, additional two bedrooms separated by a Jack & Jill bathroom down the hall. The primary bedroom has a spacious walk-in closet. Features include recently painted exterior, freshly painted interior, ceramic tile flooring throughout, new AC and water heater, black stainless steel kitchen appliances (includes refrigerator).

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16755 W Buckhorn Trail Surprise, AZ 85387

$465,462

4 Beds

3 Baths

2,291 SqFt

Status Active

MLS # 6686984

Property Type Single Family Residence

Price Type --

Can't find what you want on the resale market, look no further. This 4 bedroom, 3 bathroom Pastora plan is open, spacious and livable. The kitchen overlooks the great room and is loaded with upgrades. The kitchen includes 42'' upper cabinets with a gourmet layout, stainless steel appliances, quartz counter top and beautiful back splash. The flooring throughout is upgraded. The 12ft. sliding glass door allows more light into the great room and provides a seamless transition between the indoor and outdoor spaces. Our High Performance Homes come standard with home automation technology and a Reme Halo air purifier to promote a healthy lifestyle. EZ access to the 303 loop. Elementary school is close to community. Home is MOVE-IN READY

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17708 W Eva Street Waddell, AZ 85355

$465,420

5 Beds

2.5 Baths

1,915 SqFt

Status Active

MLS # 6687003

Property Type Single Family Residence

Price Type --

This GORGEOUS Single Story New Construction home has it all! 1,915 square feet, 5 bedrooms, 2.5 bathrooms, w/ 2 car garage! ***Est COE in May*** Our Quick move-in homes will include appliances and backyard landscape with turf. This home features a modern, neutral color palette, offering 36'' white shaker cabinetry, a large kitchen island, upgraded white quartz countertops, and 9' ceilings throughout. It also includes a soft water loop. This home prioritizes efficiency, with features such as dual pane low-E windows, and a smart home system included. The exterior features front yard desert landscaping, a covered patio and private backyard. Conveniently located off the 303, this community is near Costco, Safeway, and shopping. **Finishes may vary from sample photos and virtual tour.

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9812 E Windy Pass Trail Gold Canyon, AZ 85118

$465,400

3 Beds

2 Baths

1,642 SqFt

Status Active

MLS # 6657193

Property Type Single Family Residence

Price Type --

This popular split floor plan is located in a gated community on a quiet corner lot with mountain views and mature, low-maintenance landscaping in both the front and back yards. The interior features 3bd/2ba split floor plan, open family room with fireplace & skylights, formal dining room (or den), ceiling fans throughout and 9ft+ ceilings. Large primary suite includes great views of the back yard & pool and an en-suite with dual sinks, shower and walk-in closet. The eat-in kitchen features maple cabinets, granite countertops, pantry and breakfast bar. Tile & laminate flooring throughout. Enjoy the pebble tec play pool with waterfall and above-ground spa! The pool has a self cleaning in-ground system. Welcome home!

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1850 E Bernie Lane Gilbert, AZ 85295

$465,205

3 Beds

2.5 Baths

1,812 SqFt

Status Active

MLS # 6693338

Property Type Townhouse

Price Type --

Beautiful, newly built condo now available in Towns at Annecy! This 2-story Spanish/Italian style property offers a lovely kitchen with Stainless Electric GE appliances including a refrigerator, Quartz countertops, and a Delta Faucet. Other highlights include Espresso Shaker style cabinets, Delta Bath Hardware, wood look flooring, two closets in the Primary Suite, and ample storage throughout. A stainless GE Washer and Dryer are also included! Soft Water Loop pre-plumbed only. Enjoy gated access and endless amenities including a pool, spa, playground, and more! Please note that the interior photos are not from this home, they are a reference from a finished model.

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