FHA Mortgage

If you don't have a lot of money for a down payment, don't let that stop you. With an affordable fixed-rate FHA Mortgage from ESL, you can buy a new home with a down payment as low as 3.5% of the property value.

I needed a flexible mortgage to meet my needs, and ESL helped me find it.

Apply today for an ESL mortgage.
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  • Features & Benefits

    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.
    • Complete this form, and we’ll contact you at a time that’s convenient for you.
     
  • Specifics

    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 – Property must be located in Monroe, Ontario, Orleans, Wayne, Livingston, and Genesee counties in the state of New York.

    Loan Limits – Maximum loan amounts are listed below:

    • Single Family: $271,050
    • Two Family:   $347,000
    • Three Family: $419,425
    • Four Family:   $521,250


    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

    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.

     
  • Rates

    FHA Mortgage

    Term in Years
    Rate
    Points
    APR
    Term in Years30 year
    Rate 4.000%
    Points 0.000
    APR 4.992%

    Rates accurate as of

     
    .


    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 Monroe, Ontario, Orleans, Wayne, Livingston, and Genesee Counties in the state of New York. Not available on properties listed for sale or second homes.

    FHA Loans: Current FHA loan limits for one family, owner occupied property in counties we serve is $271,050. Higher limits are available for multiple family dwellings.

    Rate lock options:

    • The ESL standard mortgage rate lock option is 60 days and there is no lock fee.
    • 90-day and 120-day rate locks: 1/2 point fee paid at time of lock.
    • 150-day and 180-day rate locks: 1 point fee paid at time of lock.
    • The fee associated with the rate lock is non-refundable if the borrower fails to close. These fees are fully refundable if ESL declines the loan.
    • For loans that do not close prior to the rate lock expiration date, the interest rate and total points can change. This determination will be made by ESL as of the day after the rate lock expires. If the new interest rate is the same or lower than the old locked rate, the new interest rate will be the same as the old locked rate and the member will pay the total points associated with that rate and an additional 1/4 of one point at closing. If the new interest rate is higher than the old locked rate, then the new interest rate will be the higher interest rate and the member will pay the total points associated with that rate and no additional fees will be charged. Under each situation, the rate will be re-locked for 30-days.
    • Material changes in loan terms brought about by credit qualifications, collateral value, or other factors may void a rate lock.

    Payment Examples

     
  • Fees
    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

     
  • How to Apply
    Ready to apply for a fixed-rate FHA Mortgage from ESL?
    • Call 585.336.1502 or 800.352.6669, x1502, to speak with a helpful member of our Mortgage Team today.
    • Complete this form, and we’ll contact you at a time that’s convenient for you.
    What happens next?

    We’ll help you complete your application right over the phone. Of course, you’ll need to provide some very specific information to complete your application.

    • To learn more, read our Steps to Get a Mortgage page. It will help you understand and streamline the application process.
    • Please remember that it takes about 30 minutes to complete your application over the phone once you have all the information you need.

    We look forward to helping you find an affordable way to buy the home of your dreams. It’s all part of our effort to answer to you.