Christie Mitsumura Blue Seas Team » mortgage news

3 Real Estate Myths Your Dad Probably Swears By (And Why They Don’t Work Anymore)

jsavusa2018@gmail.com — Thu, 10 Jul 2025 00:31:33 +0000

Let’s have a little heart-to-heart about homebuying advice—specifically, the kind that might come from your dad, your uncle, or that one coworker who bought a house in 1993 and hasn’t stopped talking about it since.

They mean well. But today’s market isn’t the one they bought into. Prices are different. Loan programs have evolved. And frankly, waiting around for the perfect time can leave you watching the market from the sidelines while others are winning with smart, current strategies.

So let’s break down three of the most common real estate myths you’ve probably heard—and what actually works in 2025.

1. “Just wait until prices come down”

Your dad might swear by this advice because back in his day, home values dipped more often, and waiting sometimes worked in your favor. But today? Prices are sticky.

Once they go up, they tend to stay there—or keep climbing. Sure, there are seasonal lulls or market corrections, but the days of homes dropping 30% in value overnight? Long gone in most markets.

Waiting for prices to drop can mean one thing: You end up paying more later.

Why? Because while you wait:

Prices often continue to rise
Interest rates fluctuate (and sometimes go up)
You miss out on building equity now

The buyers who win today are the ones who buy based on their current budget, not their wishful thinking.

2. “Pay off everything before buying”

Now, don’t get us wrong—being financially responsible is always a good idea. But the belief that you need to be completely debt-free before buying a home? That’s outdated.

Here’s the truth: Lenders don’t expect you to be perfect.

You can still get approved with:

Student loans
Car payments
Modest credit card balances

What matters most is your debt-to-income ratio (aka how much you owe compared to how much you make). If that’s in a healthy range, you’re likely in good shape.

So instead of obsessing over being debt-free before you even start, let’s focus on getting your credit in shape, building a realistic budget, and creating a plan that works with your current financial situation—not your “someday” goals.

3. “You need 20% down to buy a house”

This one’s a classic. And again—it used to be the gold standard. But not anymore.

Today’s buyers have options. Great ones.

You can absolutely buy a home with:

3% to 5% down through conventional loans
0% down if you qualify for a VA or USDA loan
Down payment assistance if you meet income or first-time buyer guidelines

And no, putting less than 20% down doesn’t mean you’ll get stuck with sky-high mortgage payments. There are plenty of low-down payment options with competitive interest rates and reasonable monthly costs.

Waiting until you have 20% saved could mean missing out on years of equity growth—and possibly watching home prices climb faster than your savings.

The Rules Have Changed. So Should Your Strategy.

We’re not here to throw shade at your dad’s advice. It worked for him, in a different market, under different rules.

But today? It’s a whole new game.

✅ Prices aren’t dropping like they used to
✅ You don’t need perfect finances
✅ And 20% down? Totally optional

If you’ve been holding back because of old advice, it might be time for a fresh strategy—one tailored to today’s market, your lifestyle, and your goals.

Let’s chat and build a custom mortgage game plan that makes sense for you.
You don’t have to figure it out alone—I’ve got you.

Need help getting started?
Reach out anytime. Let’s cut through the noise, bust the myths, and get you on the path to homeownership with clarity and confidence.

The post 3 Real Estate Myths Your Dad Probably Swears By (And Why They Don’t Work Anymore) appeared first on Christie Mitsumura Blue Seas Team.

2023 Conventional Loan Limits

jsavusa@masonmac.com — Fri, 02 Dec 2022 01:31:09 +0000

The Federal Housing Finance Agency (FHFA) has released the loan limits for 2023. With this announcement, FHFA has effectively raised the limit on how many dollars can be borrowed using Fannie Mae & Freddie Mac Conventional loan products. The loan limits increased across the nation, with variances in the increases for “high cost areas”, and also for multi-unit properties. That is, the loan limits are higher for high cost areas, and also higher for multi-unit properties.

Here is the chart showing the loan limit updates for the year 2023:

What does this mean for borrowers?

Borrowers can benefit from the increases in loan limits mostly due to the fact that conventional lending guidelines are more forgiving than jumbo loan guidelines. Any loan above the conventional loan limit falls into jumbo loan territory, and may be more difficult to qualify for. For example, many jumbo loan products require at least 10% down payment and good to great credit scores. Conventional loans require 3-5% down payment, and are far more forgiving in terms of FICO score.

These increases also mean that more cash is available to home owners who want to use conventional cash out refinance mortgages, and investors who want to purchase more expensive investment properties using conventional guidelines.

With home prices rising drastically year over year since 2020, these loan limits should help more borrowers access competitive financing terms , and help those in higher priced markets buy a home without an immense down payment.

1st Time Over $1 Million

2023 marks the first year FHFA will allow Fannie Mae & Freddie Mac backed conventional mortgage loans exceeding $1 million dollars in high cost markets for single family homes. This will help buyers obtain loans to help buy homes in expensive metro areas or areas where median home values have exceeded the million dollar mark, without the need for an intimidating down payment. To fully understand the benefit, take a competitive jumbo loan product and compare the down payment requirement on a $1.1M home. With a competitive jumbo product requiring a 20% down payment, that’s a $220,000 investment (before closing costs!) to get into a home. With a conventional loan product requiring just 5% down, the initial investment shrinks to $55,000, helping to make it easier to achieve the dream of home ownership in higher cost communities.

For more information, or to see what the loan limits are in your community, reach out to me today!

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2022 Conventional Loan Limits

jsavusa@masonmac.com — Tue, 30 Nov 2021 13:36:16 +0000

Each year toward the end of November, FHFA (Federal Housing Finance Authority, the agency overseeing Fannie Mae & Freddie Mac) releases updated loan limits for the following year. This sets the maximum amount of money that can be borrowed under conventional lending guidelines. Today’s announcement informed us that for 2022, conventional loan limits will be increased to $647,200 (from their current 2021 $548,250 limit) nationwide, and up to $970,800 in high cost counties (from current $822,375 limits).

These changes represent an increase in area median home prices, and county changes are based on local rates of appreciation. These changes should allow home buyers more flexibility and more favorable loan terms in areas where home prices have seen increases over the past year. One major perk of using conventional financing is the ability to finance up to 95% of a home purchase, having only a 5% down payment requirement. For some borrowers and situations, conventional loans require only a 3% down payment, making it possible to achieve the goal of home ownership without bringing in a larger down payment that many jumbo loan products require.

Another perk of conventional financing is competitive rates and mortgage insurance terms for those with excellent credit. For those with good (but not exceptional) credit, conventional financing is another great option, since most jumbo financing options either require excellent credit (leaving those without excellent credit with minimal options), or coming with higher rates.

2022 loan limits are in effect for loans delivered to Fannie Mae & Freddie Mac in calendar year 2022, but loan applications can begin being processed under the new loan limits effective immediately. Your MasonMac loan officer can further explain how the increase in loan limits may be able to assist you in getting better loan terms or qualifying for more home.

For an interactive map that shows loan limits for your specific county, you can click here . If you have questions on how these loan limits can help you, or any other mortgage related questions, you can ask an expert here.

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