L U X U R Y
C O L L E C T I O N
W
Seeking ‘Jumbo’ Financing? Now may be the time.
ith Federal Housing Administration loan limits set to reduce October 1, 2011, homebuyers purchasing costlier homes will have to pay more for the most widely used mortgages available.
percent of local median price. In addition, the current limits are based on median prices set during the housing bubble, when home values were greatly inflated.
In an attempt to scale back the size of jumbo mortgages guaranteed in costly real estate markets, the maximum FHA loan amount that Fannie Mae and Freddie Mac back will decrease from $729,750 to $625,500. Loan limits vary from county to county, with high-cost regions such as New York and San Francisco offering a maximum of $729,750. When the deadline expires, the maximum loan amounts will be set at 115 percent of the local median price, which would drop the limits to $625,500 or lower for high-cost regions and between $417,000 and $625,500 for many other areas.
This is significant for homebuyers seeking to purchase in high-cost areas and plan to obtain a government-backed mortgage. For example, a borrower seeking to buy a $1 million home will require a substantial down payment for a government-backed loan of this size, increasing the required down payment from $270,000 to $370,000.
These maximums are set under the existing law at 115 percent of the local median price. However, with expanded limits currently in effect for 61 percent of the U.S. population, the maximum loans are set at 125 8
For the majority of upper-middle class homebuyers in these high-cost regions, $1 million affords a comfortable home, not a mansion. According to Zillow, San Francisco has 2,697 homes for sale with a price tag of $1 million or more. The median size for these homes is 3,180 square feet. In New York, there are 16,680 homes for sale in the same price range, averaging 3,308 square feet. The majority of larger cities across America have a significant supply of homes that qualify for the jumbo loan profile.
•
Classic properties International
The upcoming loan limit changes have the potential to greatly affect a large market segment of homebuyers and their wallets. Luxury homes specialist Sotheby’s International Realty reports sales making double-digit gains for the first quarter of this year over last year. The National Association of Realtors released encouraging news that the sale of homes over $1 million were up 5.1 percent in March over the same month last year. Another important issue for homebuyers is that retail lenders will no longer be able to resell loans over $625,500 to Fannie Mae and Freddie Mac. They will either have to portfolio these loans in-house or find a private investor to purchase them. Privately-backed jumbo loans typically require a down payment of about 30 percent of the home’s sale price, instead of the standard 20 percent necessary for smaller loan amounts. While this asks more upfront of the homebuyer, it adds security for the funding investor. These lower loan limits will leave approximately $10 billion more in loans for private investors to manage and they have already prepared to fill the gap when the government backs down. This is evident with data from the fourth quarter of 2010, which shows that private investors originated more loans in the traditional jumbo market than did government agencies. Investors are ready for this change since jumbo loans tend to be safer and more profitable. Until 2008, all home loans over $417,000 were considered jumbo loans, but in part of the stimulus package in the wake of the housing collapse,
•
Congress twice raised the limit on government-backed loans in high cost areas, first to $625,500 permanently, and then to $729,750 temporarily. According to the Federal Housing Finance Agency, nearly 669 of the nation’s 3,334 counties or county equivalents will be affected by the upcoming decline. While regulations and guidelines continue to change, it is important to also consider a cash transaction, which is generally a wise financial decision. With the deadline looming, homebuyers may want to act now to purchase that luxury or waterfront property. The wide array of available properties and current favorable interest rates create an attractive opportunity to purchase the home of your dreams. To qualify for the current FHA home loan limits, the mortgage must close prior to October 1. It is best to take advantage of these maximum loan amounts well in advance of that date to ensure your home loan will close before the deadline.
This article was submitted by Cornerstone Mortgage Company, a fullservice mortgage banker operating more than 81 offices in Texas, Georgia, Minnesota, Oklahoma, Utah, Arizona, Colorado, California, Mississippi, Nevada, Tennessee and Washington. Corporate Office/ Houston, 713.621.4663, 1177 West Loop South, Suite 200, Houston, Texas 77027. NMLS 2258.
•
classic properties international
•
Meadow Creek East Islip, New York Stunning waterfront estate with dock. Exceptional 10,000 square foot custom Colonial. 22 rooms, six bedrooms, nine bathrooms, on 2.5 luscious acres. Gunite pool, cabana, putting green, 227' bulkheaded waterfront. Incredible unobstructed vistas, access to Great South Bay, sandy beach, dock, boat slips. Masterpiece Listing SD #3. MLS# 2388536. $4,000,000. Bonnie Williamson, LAB, 631-427-6600 ext.210 / Patricia Bretone, LAB, 631-427-6600 ext.264
Stearns Point Shelter Island, New York Delight in your incredible views from this spacious, 1.56-acre parcel. Look over Shelter Island’s exclusive Crescent Beach from your private bluff. Build your dream Beach House on this Northwesterly facing lot to make the most of the Gorgeous Sunsets. Well is in place and DEC permitting is complete. Two deeded accesses make for trouble-free building. An unbelievable, panoramic vantage point. SD #1. MLS# 2422675. $1,420,000. Linda L. McCarthy, LSP, o.631-749-1155 ext.202, c.631-745-2626
Twinight - Waterfront Centre Island, New York Majestically sited on a shy 6 waterfront acres on Long Island Sound with 435' of white sandy beach, this limestone masterpiece is encompassed by panoramic water views and captivating sunsets. Built in 2005 and inspired by Marie Antoinette’s, Le Petit Trianon in Versailles, “Twinight” presents 16,500 square feet of luxury living. Masterpiece Listing. OB/EN SD #6. MLS# 2437378. $22,500,000. Debra Petkanas, LAB, 516-759-4800 ext.140, c.516-359-3204 / Laura Zambratto, LAB, 631-692-6770 ext.284, c.917-822-4360
Exceptional Waterfront Residence Cold Spring Harbor, New York Spectacular waterfront, sandy beach, dock, captivating western water views, glorious sunsets. Recently renovated by award winning architect with sophisticated European influence. Wonderful dining venues inside and out. Unbelievable lower level with amazing wine cellar. Cloistered on 2+ landscaped acres with terraces, gardens, pool and onebedroom. cottage. Very convenient location. Masterpiece Listing. CSH SD #2. MLS# 2423249. $6,500,000. Margy Hargraves, LAB, 631-692-6770 ext.227 / Donna M. Scala, LSP, 516-922-9155 ext.139
Daniel Gale Sotheby’s International Realty 36 Main St., Cold Spring Harbor, NY 11724 • www.danielgale.com
•
classic properties international
•
Exceptional Residence Glen Cove, New York Stunning, completely renovated five-bedroom, four and one half-bath classic Colonial residence features gourmet chef’s kitchen with butler’s pantry, 4 fireplaces, generous crown and base moldings, hardwood floors, surround sound system and alarm. Exquisite custom quality and updates throughout. Country club setting features beautiful 1,300 square foot bluestone terrace, heated mineral spa pool with automatic safety cover and specimen gardens. Glen Cove SD #5. MLS# 2430140. $1,475,000. Zuzana Pace, LSP, 631-692-6770 ext.259 c.516-662-5151
Wincoma Waterfront Huntington Bay, New York Exquisite residence in a very picturesque setting. All impeccably updated with exceptional quality. Spectacular western water views of Huntington Harbor. 150' of sandy waterfront. Beautifully appointed principal rooms great for entertaining and everyday living. Professionally landscaped property with patios and outdoor fireplace. Wincoma Beach Association (dues required). Move right in. Huntington SD #3. MLS# 2435663. $1,800,000. Margy Hargraves, LAB, 631-692-6770 ext.227 / Peggy Moriarty, LAB, 631-692-6770 ext.224
Classic Elegance Lloyd Harbor, New York The lifestyle in the Incorporated Village of Lloyd Harbor incorporates the best of Long Island. Set on two flat acres close to schools, shopping and commuting avenues, this lovely Garrison Colonial has been updated and expanded to perfection. Custom country kitchen, cherry paneled family room and high ceilings detail the interior. Spectacular landscapes, patios, and outdoor kitchen frame the exterior. CSH SD #2. MLS# 2436777. $2,099,000. Deborah Tintle Hauser, LSP, 631-692-6770 ext.328
Spectacular Setting Brookville, New York Step up to the lifestyle you desire in this dramatic, sundrenched home with soaring ceilings and walls of glass overlooking majestic, manicured grounds. A grand, sky lit foyer welcomes you into a perfect setting, ideal for entertaining, with its open Den with wet bar and step down Living Room with fireplace. Offering a luxurious master suite with marble bath, oversized deck, gunite in-ground pool, full basement and 3-car garage, this beautiful home on a quiet tree-lined cul-de-sac, awaits you. SD #15. MLS# 2440513. $1,995,000. Linda Faraldo, LAB, 516-674-2000 ext.122, c.516-984-9049 / Judy Milman, LAB, 516-626-7600 ext.33, c.516-353-9327
Daniel Gale Sotheby’s International Realty 36 Main St., Cold Spring Harbor, NY 11724 • www.danielgale.com
•
classic properties international
•
Belle Masion Nissequogue, New York Beachfront on Long Island Sound - Spectacular water views from most rooms and the deck. Hamptons-style two-story home features dramatic entry, open floor plan, cathedral ceilings, four bedrooms, three and one half baths and your own path to beach for easy summertime living. SD #1. MLS# 2391465. $1,850,000. Miriam Ainbinder, LAB, 631-689-6980 ext.216
Classic Colonial Great Neck, New York Gorgeous brick Colonial built in 2006 in University Gardens. Two-story entrance foyer, living room with fireplace, formal dining room and eatin kitchen with top-of-the-line appliances. Walk out to patio through French doors from kitchen and family room. Finished basement with large entertainment area. SD #7. MLS# 2405458. $2,280,000. Carolyn Liu, LSP, 516-627-4440 ext.105, c.917-887-7335
Pond View Manhasset, New York Majestic 6,500-square-foot brick Colonial newly constructed with gracious architectural details and the finest materials. This gracious home sits on approximately 1 acre overlooking scenic pond with views of Manhasset Bay. Two-story foyer, living room with fireplace, formal dining room, library, gourmet kitchen which leads to large family room opening onto expansive deck. SD #6. MLS# 2405741. $4,180,000. Carolyn Liu, LSP, 516-627-4440 ext.105, c.917-887-7335
Bois Joli Matinecock, New York Breathtakingly beautiful Georgian-style Colonial combines John Russell Pope’s classic architecture with a 26 divisible acre English park. Considered one of the Gold Coast’s grandest estates updated for 2011 living. Pool, pool house, tennis, 7-car garage with 2 large apartments. Masterpiece Listing. SD #3. MLS# P1109829. $11,500,000. Barbara Candee, LAB, 516-759-4800 ext.136
Daniel Gale Sotheby’s International Realty 36 Main St., Cold Spring Harbor, NY 11724 • www.danielgale.com
•
classic properties international
•
Tall Trees Manor Manhasset, New York Nestled on 1.1 acres of picturesque property is “Tall Trees Manor,” an English Normandy Tudor combining Old World craftsmanship with modern comfort. This meticulously updated residence features a dramatic foyer, expansive living room, banquet-sized dining room, library, family room, sun room, gourmet kitchen, breakfast area, four bedrooms, gym, wine room, guest cottage and a 3-car garage. Masterpiece Listing. SD #4. MLS# 2285460. $2,959,000. Mary Ann Horne, LAB, 516-627-4440 ext.204, c.516641-4421 / Janet Andreoni, LAB, 516-883-2900 ext.137, c.516-359-9262
Contemporary Retreat Old Westbury, Long Island, New York Stunning residence located in a cul-de-sac on 2 scenic acres. Home boasts a master bedroom suite featuring a library and marble bath with Jacuzzi and sauna and five additional bedrooms, four and one half baths, three granite fireplaces, 3-car garage, central air and full basement. SD #1. MLS# 2342990. $1,899,000. Simran Sawheny, LSP, 516334-3606 ext.17, c.516-884-4935
Eagle’s Point Laurel Hollow, New York An exquisite residence sequestered on over 2 magnificent acres with Gunite pool, bluestone terrace, specimen plantings, perennial gardens and an elaborate water fountain. This noble brick mansion with adjoining cottage is the perfect fusion of traditional grandeur and modern convenience. Beach and mooring rights. Cold Spring Harbor SD #2. MLS# 2378003. $3,995,000. Margy Hargraves, LAB, 631-692-6770 ext.227 / Peggy Moriarty, LAB, 631-692-6770 ext.224
Bayberry Pointe Islip/Great South Bay, Long Island, New York Unobstructed water views and sunsets, beachfront cabana, incredible 157 feet of beach. Stunning custom Colonial with bridal staircase, large open-space cook’s kitchen, luscious master suite with his/her dressing room, marble bath, private veranda. 1.82 acres of manicured property including a sculpture garden. Masterpiece Listing. SD #2. MLS# 2390742. $3,900,000. Maria Boccard, LAB, 631-427-6600 ext.361, c.631-834-5713
Daniel Gale Sotheby’s International Realty 36 Main St., Cold Spring Harbor, NY 11724 • www.danielgale.com
•
classic properties international
•
Holly Hill Brookville, Long Island, New York Unique compound set on 4.75 manicured acres in Brookville. The circular drive leads to a circa 1930, totally renovated, 17-room Manor Home. The adjoining 4,000 square foot custom Contemporary was built for carefree living. 1.5-acre greenbelt surrounds the property. In-ground pool and 5 car garage. Jericho SD. #15. MLS# 2307689. $5,999,000. Ellen Zipes, LAB, 516-626-7600 ext.15, c.516-817-7300
Windrift Centre Island, New York Waterfront perfection on Long Island’s Gold Coast. 6-acre sanctuary with brilliant unobstructed water view, sandy beach, lush gardens, pool, pool house/cottage, all-weather tennis court. Stucco, slate roof Europeanstyle manor offers five bedrooms, six and one half baths, sumptuous master suite. Amazing sunsets. Masterpiece Listing. SD #6. MLS# 2327639. $8,350,000. Barbara Candee, LAB, 516-759-4800 ext.136, c.516-456-0330
Linden House Huntington Bay, Long Island, New York Exceptional Cotswold-style vintage brick and cedar roof home with all modern amenities, in former estate setting. Six bedrooms, four and one half baths, four fireplaces, gourmet eat-in kitchen, entertainment kitchen and home theater. In-ground pool, separate guest cottage with fireplace, bedroom and bath. Deeded beach, mooring, dock rights. Enhanced Listing. SD #3. MLS# 2334363. $2,450,000. Bonnie Williamson, LAB, 631-427-6600 ext.210, c.516-443-5958
Exceptional New Construction Lloyd Harbor, Long Island, New York Unsurpassed architectural perfection will adorn every inch of this exquisite six-bedroom, six and one half-bath Colonial to be built on close to 4 spectacular acres featuring a full guest cottage and sparkling pool. Entertain in style in your very own tranquil retreat. Cold Spring Harbor SD #2. MLS# 2341038. $4,399,000. Laura Zambratto, LAB, 631-692-6770 ext.284 / Andrew Zambratto, LSP, 631-692-6770 ext.233
Daniel Gale Sotheby’s International Realty 160 E. Main St. Huntington, NY 11743 • www.danielgale.com
•
classic properties international
•
Villa Martina Mill Neck, Long Island, New York Incomparable 14,000 square foot waterfront 1931 slate roof Manor on Long Island’s Gold Coast. Completely and exquisitely redone in 2007 with finest materials and craftsmanship. 10+/- acres offer spectacular water views of Harbor and Long Island Sound. Charming new 3,000 square foot guest house, pool, pool house. Masterpiece Listing. SD #3. MLS# *1090464. $15,500,000. Barbara Candee, LAB, 516-759-4800 ext.136, c.516-456-0330
Perfection Old Westbury, Long Island, New York 6,400 square foot brick Colonial on 3.9 acres on highest point of Long Island, part of original Whitney Estate. State-of- the-art magnificence. Long gated driveway with award-winning landscaping, gardens and hot tub. Seven bedrooms, six and one half baths and fantastic finished lower level. Jericho School District #15. MLS# 2344716. $5,500,000. Jean Margolin, LAB, 516-484-1800 ext.250, c.516-317-9349
Waterfront Perfection Islip/Great South Bay, New York Waterfront perfection. 157 feet directly on the great South Bay. Enjoy unobstructed panoramic water views and sunsets, lush gardens, pool and pool house. Custom built brick Colonial with bridal staircase, great room, with built-in bar and stone fireplace, oversized gourmet kitchen, formal library with fireplace. Sumptuous master bedroom suite, his/hers closet and marble bath. Islip SD #2. MLS# 2358441. $4,500,000. Maria I. Boccard, LAB, 631-427-6600 ext.361, c.631-834-5713
Tara of Old Westbury Old Westbury, Long Island, New York This gated estate was totally renovated to retain the beauty of the original home built in 1805. To bring the home up to date, there are all new bathrooms, radiant heated floors and a gourmet kitchen fit for the finest cook. Set on over 4 acres with pool and tennis court. SD #1. MLS# 2366887. $3,600,000. Wendy Osinoff-Sutton, LAB, 516-626-7600 ext.11, c.516-398-1653 / Ellen Zipes, LAB, 516-626-7600 ext.15, c.516-817-7300
Daniel Gale Sotheby’s International Realty 160 E. Main St. Huntington, NY 11743 • www.danielgale.com
Hughes Design Associates is a highly respected design firm known throughout North America, the Caribbean and the Bahamas for specializing in luxurious, custom residential interiors. Pamela Hughes leads a team of exceptionally talented and qualified architects, interior architects and interior designers with highly prestigious projects to their credit. With access to unlimited resources throughout the world, the talented Hughes Design team works together to bring visions to reality and to transform space: on-time, within budget and guided smoothly from initial concept to final elegant design. Pamela Hughes and her team have become a valuable resource for many of the premier luxury residential brokerage firms. Their knowledge of construction and renovation costs, as well as Pamela’s unique vision of a property’s potential, is an invaluable asset. Her team provides an uncommon and fresh perspective to discerning clientele and their agents on the hidden potentials any luxury property may possess. Our expertise provides a home buyer with the ability to envision any property as a future home, vacation retreat and ultimately - a lifestyle.
“I enjoy the hands-on aspect of luxury residential design projects. It’s an opportunity for me to connect with individuals and work one-on-one with my clients.”
McLean, VA 703.442.3200
Sarasota, FL 941.922.4767
New York, NY 646.308.1302