How Much Do You Need for Your Down Payment?

By
Real Estate Agent with HomeSmart License # SA577557000

How much do you need as a down payment for your Phoenix or East Valley, AZ home.

 

As you set out on your home buying journey, you likely have a plan in place, and you're working on saving for your purchase. But do you know how much you actually need for your down payment?

If you think you have to put 20% down, you may have set your goal based on a common misconception. Freddie Mac says:
 
"The most damaging down payment myth-since it stops the
homebuying process before it can start-is the belief that 20%
is necessary."

Click on the link below to find out more.

How much do you need as a down payment for your Phoenix or East Valley, AZ home.

If you’re ready to start feeling the benefits of stability, savings, and predictability that come with owning a home, reach out to a local real estate professional to determine if buying sooner rather than later is right for you.

If you're thinking of buying a home, more homes are being listed for sale, and interest rates remain at historically low rates. Being a trusted real estate professional, I can answer your questions and help you determine your next steps.

Feel free to reach out to me if you have any questions about home buying, selling, or investing in the Phoenix Metro or East Valley areas. Just give me a call or text at 602-295-6807 and I will be glad to help.

"Real Estate is not just a job for me,
it's about making a difference in the lives of others"
       
Troy Erickson has been blogging about Arizona real estate since 2006. He is a residential real estate agent who specializes in helping home buyers, sellers, and investors in Chandler and the East Valley. He has been recognized for his local market expertise, and frequently volunteers within his community.
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         Contact Troy Erickson, Realtor®, Good Company Real Estate

Licensed Residential Realtor® in Arizona at 602-295-6807

 

Reach out to me for all your Phoenix, Chandler, Ahwatukee, Tempe, Gilbert, and Scottsdale, Arizona Real Estate needs.

 

Check out our website for all Arizona Real Estate and Homes For Sale in subdivisions like Sun Lakes, Ocotillo, Lakewood, Mountain Park Ranch, Pepperwood, Circle G Ranches, and many others throughout the East Valley.

 

"Real Estate is more than just about a job for me. It is about making a difference in the lives of others. I help people just like you Buy, Sell, and Invest in East Valley Arizona Real Estate!"

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This post is for informational purposes only and should not be construed as legal advice. If you desire specific legal or tax advice, please consult the appropriate professional. The opinions expressed here represent my own and not those of my employer. Troy Erickson will not be held liable for any errors, ommissions, accuracy, validity, currentness, suitability, completeness; or any losses, injuries or damages arising from its display or use.

Comments (6)

Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

location location location.... I work in a second home market where all local lenders do require 20% for those second homes.  And I personally would NEVER put down less and throw money away on PMI.

Jan 28, 2022 11:27 AM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Great comment Tammy Lankford, but obviously not everyone is going to have 20% to put down on a home, especially if that meant they would need to come up with $100,000 to buy a $500,000 home, which is below the average sales price in my area.

If you do not own a home, you are paying rent to someone else and not building equity for yourself. Obviously if you have 20% to put down that is the way to go in most circumstances, but that has got to be difficult for many people, especially first-time buyers.

Jan 28, 2022 11:41 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Troy Erickson AZ Realtor (602) 295-6807 with PMI factors being as low as they are today, in many cases it does not make any sense to put down more than the minimum down payment.

Jan 28, 2022 01:40 PM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Thanks for your input George Souto. As an expert in the mortgage industry, I appreciate what you have to say. The hope would be for a buyer to get into a home however possible so they can start building equity.

Jan 28, 2022 02:22 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Loved your post and our friend George Souto  has given a wise comment Endre

Jan 28, 2022 11:51 PM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Hi Endre Barath, Jr., thanks for stopping by and commenting. Not everyone can put 20% down, so I am glad that there are other options for people to get into homes.

Jan 29, 2022 01:49 AM