If you're doing the math on your rent versus a mortgage right now, you're not alone. I get this question more than almost any other, so let's just answer it straight.
Short answer: for a $700,000 home in Scottsdale, you're likely looking at $35,000-$140,000 for your down payment depending on your loan type, plus 2-3% of the purchase price in closing costs — and there are Arizona programs that can knock a chunk off that number.
Here's how it actually breaks down.
What homes are running right now
South Scottsdale single-family homes have been sitting around $880,000 this year. Old Town condos give you a more attainable entry point — a lot of buyers are finding something between $700,000 and $800,000, and studios or 1-bedrooms in the older mid-rises can start in the high $290,000s. So your down payment math changes a lot depending on which pocket you're looking at.
The down payment math
20% down on a $700,000 home is $140,000
5% down (conventional) is $35,000
3.5% down (FHA) is $24,500
Most of our buyers aren't putting 20% down, and that's okay. You'll pay private mortgage insurance until you hit 20% equity, but for a lot of young buyers, getting in sooner beats waiting years to save more.
What your payment actually looks like
30-year fixed rates are sitting around 6.6-6.7% right now. On a $665,000 loan (5% down on a $700,000 home), that's roughly $4,250-$4,400 a month before taxes and insurance. It's not nothing — but stack it against what you're paying in rent for less space, and it starts to make sense.
Arizona will help you get there
This is the part people don't know about. Arizona's Home Plus program offers qualifying buyers up to 4% in down payment assistance (5% if you're active-duty military or a veteran). If you're buying in Maricopa County, the Home in Five Platinum program offers up to 4% of your loan amount as a forgivable second mortgage — meaning you don't pay it back if you stay in the home. Between the various Arizona programs, some buyers qualify for up to $40,000 in assistance. Program terms, income limits, and amounts change. Confirm current details with an approved lender.
Don't forget closing costs
Budget 2-3% of the purchase price for closing costs — so $14,000-$21,000 on a $700,000 home. Sometimes we can negotiate seller credits to cover some of this, depending on the market.
Molly
Molly Rodham and Jared Rodham are the husband-and-wife team behind Jared & Molly with The Avenue Collective in Scottsdale, working in Arcadia, South Scottsdale and central Phoenix for 11+ years. Thinking about a move here? Call or text 602-748-7289.
