​​​Fixed Rate Mortgage









Adjustable Rate Mortgage (ARM)








Fixed/ARM Hybrid















Fixed/ARM Hybrid, Interest First (Also referred to as "Interest Only")







Balloon Mortgage







Low and No Down Payment Loan











LIBOR Interest-Only Alterna Loan








My Community Mortgage (MCM)









Home Together

Public Safety Program







Stated Income and Stated Asset Program




FHA Fixed Rate Mortgage









FHA Adjustable Rate Mortgage (ARM)







FHA 203k Rehabilitation Loan






VA Fixed Rate Loans






VA Adjustable Rate Loans





Refinancing







Second Mortgage or Home Equity Loan







Jumbo Loans




          

 Loan type                        Description                         Who It's For                           Main Advantages                Main Disadvantages

Finding the right mortgage can be a very frustrating process. We have created a chart of the most common types of mortgages so that you can compare them and make some initial decisions about the type of mortgage in which you are interested. Of course, a Virtua Funding professional can answer your questions about any of the loans featured below, and more.

Finding the Right Mortgage

Mortgages Made Simple

The fixed principal and interest portion of the mortgage payment stays the same for the life of the loan with no unexpected rises.





Take advantage of lower initial interest rates with adjusted lower monthly payments. When interest rates fall, the borrower may not need to refinance as the interest rate on their mortgage falls accordingly.


Gives the borrower a chance to establish financial stability before they must manage less predictable payment amounts.










The borrowers interest-only payments may be tax deductible. In addition, a prepayment of principal may reduce the next monthly interest-only payment.




Lower interest rates and simple plan for specific types of borrowers.





Borrowers with little to no savings for up-front costs and down payments can still secure a mortgage.









Historically, the rate remains below U.S. Treasury-based ARMs. Allows more types of borrowers to qualify.





Requires little money down and very little to closing costs and prepaid costs compared to conventional loans.






Requires little to no money down along with other fee wavers. Provides education and support concerning mortgages.





Traditional income and asset documentation--such as pay stubs and tax returns--is not required.



Gives hopeful homeowners the chance to secure a mortgage, even if their credit history is imperfect. Out-of-pocket closing costs are lower.





Gives hopeful homeowners the chance to secure a mortgage, even if their credit history is imperfect. Closing costs are generally lower.



Allows for homeowners to revitalize and improve a residence.





In many instances, no down payment is required and closing costs are covered by the gift funds or seller.


In many instances, no down payment is required and closing costs are covered by the gift funds or seller.


Allows homeowners to use their home equity to take advantage of low interest rates, borrow money for home improvements, or consolidate debts.


Can create lower monthly payments, or provide cash to borrowers through their own home equity. Creates opportunity to consolidate debt or commence home improvement projects.


Allows homebuyers to purchase larger, more expensive homes or homes in higher priced communities.



A loan with a fixed principal and fixed interest payments for the life of the loan.








Typically has a lower interest rate to start, which translates to a lower payment. But the interest rate adjusts over time to either a higher or lower interest rate over time.


Combines elements of both fixed-rate and adjustable-rate mortgages; typically has a lower interest rate than a traditional fixed rate mortgage. The initial payment period is fixed for a specific term, then the interest rate and principal will adjust over the remaining term of the loan.A loan with a fixed principal and fixed interest payments for the life of the loan.


Payment of "interest only" reduces your monthly payment compared to a more traditional type mortgage where your payment includes both principal and interest.




Typically lower interest rate than a traditional fixed rate mortgage.





There are a variety of low or no down payment programs available. Some of these loans are best suited for borrowers with excellent credit who want to preserve their assets. Other loans are best for first-time home buyers with income limitations or area restrictions.


Generally offers an interest rate lower than other adjustable rate loans. Payments are interest-only to start, then principal and interest. "LIBOR" stands for London Interbank Offering Rates.


A special mortgage program for borrowers making less than the average area income (HUD median income), living in specific areas and/or employed in specific fields such as health care, public safety and teaching.


A special homebuying program offered exclusively to members of public safety. It gives access to education programs about the homebuying and closing process as well as special mortgage programs.


Loan programs that require limited or reduced documentation of the borrower's income and/or assets.


Fixed rate mortgages generally suited for first-time borrowers and borrowers with less than perfect credit. FHA allows 100% of the cash needed to close to come from a gift. "FHA" means Federal Housing Authority.


The lower start rate on an adjustable rate mortgage may help a borrower qualify of a larger loan amount than with a fixed rate mortgage. "FHA" means Federal Housing Authority.


A specialty loan designed to rehabilitate properties in need of repair. "FHA" means Federal Housing Authority.




Low cost, fixed-rate loans. In most instances, these loans require no down payment.




Low cost, adjustable-rate loans. In most instances, these loans require no down payment.



There are several options for refinancing a mortgage; loans for refinancing are as varied as purchase mortgages.



Fixed- or adjustable-rate loans available for purchase or refinance transactions.






Fixed- and adjustable-rate mortgages for loan amounts above the conforming limit.




801.448.3800

Best for borrowers who desire a more predictable principal and interest payment throughout the life of the loan.







Borrowers who are able to budget for a slightly less predictable interest rate and monthly payment.






Best for borrowers who are less financially established at the start of a loan, but plan to have more financial stability after several years. Also, for those who plan to move or refinance early.









Best for borrowers who are less financially established at the start of a loan, but plan to have more financial stability after several years. Also, for those who plan to move or refinance early.




First time buyers who plan to move after a few years, or someone whose career forces them to move often.




Borrowers with excellent credit who want to continue their good credit record, first time buyers, and buyers with income limitations.








Beginning borrowers, and borrowers seeking a larger-than-normal loan and expect to be able to increase payments after several years.





Borrowers within specific income ranges, living in specific areas and working in specific public service fields.







Members of a public safety profession.








The self employed, or those with complicated financial records.




Borrowers who may need more relaxed credit guidelines and who have limited funds to invest.







Borrowers who may need more relaxed credit guidelines and who have limited funds to invest.





Borrowers who may need more relaxed credit guidlines and who have limited funds to invest.




Veterans and their spouses.







Veterans and their spouses.





Homeowners with a certain amount of equity already in their homes.





For home purchasers who wish to avoid mortgage insurance or homeowners with a substantial amount of equity already in their homes.




Homebuyers looking for more expensive homes or higher loan balances.




The fixed principal and interest portion of the mortgage payment will not go down when interest rates go down. In addition, the portion of the monthly payment that includes taxes and insurance may fluctuate from year to year.


The principal and interest portion of the mortgage payment may be unpredictable at times; payments go up when interest rates rise.




Requires some planning and financial advancement.














There is no scheduled principal reduction during the interest-only period. In addition, when the loan enters the amortization period (or the scheduled payoff period), there will be higher payments because the loan is paid off in a short period.


After the initial balloon period (3, 5 or 7 years), borrowers may be required to pay off the remaining loan in one lump sum which usually requires refinancing.


Low or no down payment loans usually require private mortgage insurance and/or higher interest rates.









After a predetermined number of years, monthly payments will increase and interest rates will adjust annually.





Eligibility is limited, and types of properties are restricted. Borrower must occupy property as primary residence.







Eligibility is limited.









Good credit history is required. Types of properties are restricted.




Loan amounts may be limited and vary according to state, county and city. FHA mortgage insurance is required.







Loan amounts may be limited and vary according to state, county and city. FHA mortgage insurance is required.





Loan amounts may be limited and varied according to state, county and city. Types of properties are restricted. FHA mortgage insurance is required.


Borrower must live in purchased property; VA loans are not available for investment properties or manufactured housing.


Borrower must live in purchased property; VA loans are not available for investment properties or manufactured housing.


Borrower must close the new loan and in some cases pay some or all of the closing costs.




Increases number or amount of monthly payments.







Because Jumbo Loans are considered "higher risk" loans, some lenders charge slightly higher interest rates.