Features & Benefits
A VA loan is a closed end, fixed rate mortgage, that requires no down payment (0% down payment). Although a down payment is not required, if borrowers prefer to make a down payment they have the flexibility for funds to come from non-traditional, alternative sources (gift money that does not have to be paid back).
VA loans have flexible credit terms, fixed interest rates, no mortgage insurance, and 30 year repayment terms. This loan requires a certificate of eligibility from the VA. VA loans may require an upfront VA funding fee of up to 3.60% of the loan amount which may be financed within the loan.
Specifics
How to Get Started
Speak with an ESL Originator
Interested members should reach out to an ESL Originator (585.336.1502) and get prequalified or submit an application to purchase their first home.
Eligible Properties
Owner-occupied, 1-4 unit residence, modular homes, and Planned Unit Developments (PUDs).
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
VA loan limits vary based on dwelling type.
- Single Family: $766,550
- Two Family: $981,500
- Three Family: $1,186,350
- Four Family: $1,474,400
Term
Flexible 30-year repayment terms. No prepayment penalties.
Rate-Lock Options
The borrower has the option to float their interest rate up to 21 calendar days prior to the scheduled closing date. Anytime during this float time period, the interest rate may be locked. ESL does not charge for standard 60 day rate locks.
Discount Points
Points may be paid to reduce the interest rate. Contact the ESL Mortgage Lending Center for rate-reduction options.
Premium Points
Premium point(s) are used to lower out-of-pocket closing cost expenses. The premium point(s) are used as a credit toward closing costs in exchange for a slightly higher rate. These premium point(s) cannot be used to pay any part of the down payment.
Down Payment
Not required. Although a down payment is not required, if borrowers prefer to make a down payment they have the flexibility for funds to come from non-traditional, alternative sources (gift money that does not have to be paid back).
Mortgage Insurance
Not required.
Payment Due Date
Payment due date will be determined when the loan is disbursed.
Closing Costs & Fees
VA fees can be paid at closing or financed within the loan. ESL will also charge other fees and prepaid items that include an Origination Fee, Appraisal, Taxes, and other fees. VA loans may require an upfront VA funding fee of up to 3.60% of the loan amount which may be financed within the loan.
Servicing
All VA loans and servicing rights will be sold after closing to investors that are not affiliated with ESL Federal Credit Union.
Payment Options
VA Loan payments cannot be made through ESL Online and Mobile Banking, or at ESL branches or the contact center. Members should reach out to applicable servicers and reconfirm payment options (ie. ACH) prior to receipt of the first billing statement.
In addition, VA loan balances are not eligible for the ESL Owners’ Dividend.
