FHA Mortgage

If you have only a limited amount of money for a down payment, a fixed-rate FHA Mortgage from ESL could be a great home-buying solution for you. These popular loans – which come from the Federal Housing Administration (part of the Department of Housing and Urban Development) – are specifically designed for people who might not qualify for a conventional mortgage.

• Buy your home with a low down payment. With an FHA Mortgage, your down payment can be as low as 3.5% of the purchase price.
• Simplify monthly budgeting. With a fixed-rate mortgage, you’ll know exactly how much you’ll owe each month.
• Take up to 30 years to pay off your mortgage. It’s another way to make home financing more affordable.
• Don’t worry about prepayment penalties. If you want to pay off your mortgage early, no problem. You won’t ever have to pay a prepayment penalty at ESL.
• Find out more about these flexible financing options. With an FHA Mortgage from ESL, you may be able to use money from gifts and grants to pay for your down payment or closing costs. 
• Get the straightforward answers and personal assistance you need to complete your application. You can count on our experienced Mortgage Team to help you from start to finish. 

At ESL, we’ve been helping people in Rochester buy homes for more than 90 years. We look forward to helping you, too.

Please remember our fixed-rate FHA Mortgages usually require mortgage insurance payments paid upfront and on a monthly basis.

For more information:

• Call 585.336.1502 or 800.352.6669, x1502, to speak with a helpful member of our Mortgage Team today. Or fill out this contact us form to have a member of our Mortgage Team reach out to you.

Eligible Properties

Owner-occupied 1-4 unit residence, modular homes, and planned unit developments (PUDs).

Ineligible Properties

Second homes (including vacation homes); manufactured homes; condominiums; cooperative housing (co-ops); property used for agriculture, farming, or commercial enterprise; vacant land; investment property; and multi-family (5+ units).

Lending Area

ESL lends to all counties in New York State except for Bronx, Dutchess, Kings, Nassau, New York (Manhattan), Orange, Putnam, Queens, Richmond (Staten Island), Rockland, Suffolk, Sullivan, Ulster, and Westchester Counties.

Loan Limits

Maximum loan amounts are listed below:

• Single Family: $524,225
• Two Family: $671,200
• Three Family: $811,275
• Four Family: $1,008,300

Mortgage Insurance

Typically requires upfront and monthly mortgage insurance.

Payment Due Date

Payment due date will be determined when the loan is disbursed.

Payment Options

ESL has a variety of loan payment options that make it easy for you to pay your ESL loans from your phone, tablet, or PC. Our loan payment option comparison chart will help you decide which option is most convenient for you. Still have questions? Connect with an ESL representative so we can help.

No Prepayment Penalties

When you get a mortgage from ESL, you can pay it off at any time without worrying about any prepayment penalties.

Interest Rate APR (Annual Percentage Rate)

Rates subject to credit evaluation. Actual rates may vary. All rates are quoted based on a 60-day rate lock and are for properties located in upstate New York. Rates for longer rate locks may be higher.

Rate-Lock Options

The interest rate may float from time of application to a few business days prior to closing. Anytime during this float time period, the interest rate may be locked. FHA mortgage rates are quoted based on a 60-day rate lock. Extended rate lock options up to 180 days are available upon request.

For rate information, call 585.336.1502 or 800.352.6669, x1502, to speak with a helpful member of our Mortgage Team today. Or fill out this contact us form to have a member of our Mortgage Team reach out to you.

Understanding ESL Mortgage Closing Costs and Fees 

Here’s something important to remember when you’re shopping for a mortgage: 

We carefully manage and control the mortgage process from start to finish. Our goal? We want to minimize the costs our members pay. That’s one of the reasons why our closing costs are among the lowest in our area.

We also make sure that our entire approach to closing costs is straightforward and easy to understand. That’s why you’ll know exactly what’s due prior to closing. And you won’t have any unexpected, last-minute expenses that may delay the closing process.

A Quick Reference Guide to Closing Costs

At ESL, we realize that buying a home can be a complex and confusing process for many home buyers. That’s why we want to make sure you understand all of the specific costs involved in your closing

Here’s a quick recap of these common closing costs:

• Origination charges cover our fees for processing your mortgage application, including your application and underwriting fees, the costs involved in document preparation, and the settlement and attorney costs. 
• Discount points are paid voluntarily in exchange for a lower interest rate. They are calculated as a percentage of your loan amount and usually paid at closing.
• Mortgage Insurance will be required on loans with over 80% LTV to protect the lender in the event of default of the borrower. This is often called FHA Mortgage Insurance Premiums.
• Other expenses for third-party services obtained on your behalf. These expenses include the costs for your title insurance and fees for appraisals and credit reports.
• Taxes and other government fees cover your state and county mortgage taxes and the recording fees paid to the county clerk.
• Prepaid items include property taxes, homeowners insurance, and prepaid interest. They may also include mortgage insurance.

Estimate Your Closing Costs

To make a sound financial decision about a mortgage, it helps to estimate your closing costs in advance. 

That’s why we provide a helpful Mortgage Closing Calculator. It will help you find a mortgage that fits your financial situation and your budget.

Use our Mortgage Closing Calculator today.

Post-Closing: Potential for Late Fees

At ESL, there’s only one fee that may be assessed after your closing. And that only happens if your mortgage payments are late. If we do not receive the full monthly payment 15 calendar days after the scheduled due date, you’ll have to pay a late fee that is 2.0% of the total overdue payment of interest and principal.

Please remember, however, that there are easy ways to avoid late fees. Just make sure your mortgage payments are made on time every month. View Loan Payment Options. 

It’s easy to apply.

• Call 585.336.1502 or 800.352.6669, x1502, to speak with a helpful member of our Mortgage Team today. Or fill out this contact us form to have a member of our Mortgage Team reach out to you.

Please remember that borrowers and co-borrowers must be at least 18 years old to apply.

In preparation for your mortgage application please begin to gather, and be prepared to eventually make available, the following documents:

• Income for all borrowers – your W2s and tax return will provide this information.
• Banking information – banking statement information that include bank name, your name, account number, current balance, and 30 days transaction history.
• Estimate monthly expenses – Write down your monthly expenses like rent, mortgage, utilities, credit cards, and additional expenses.
• Estimate funds available for down payment (excludes closing costs).
• Estimate for closing cost, property taxes, and insurance.
• Purchase contract – if available at application.
• Inspection expenses – receipt/invoice for any/all inspections, if available at application.