Benchmark Mortgage, Inc., 6800 Paragon Place, Suite 475, Richmond, VA 23230

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Benchmark Mortgage, Inc. offers a variety of loan programs to meet your needs.

# of years you plan to stay in the house	Recommended program
1 - 3	3/1 ARM, 1 year ARM, 6 month ARM
3 - 5	5/1 ARM
5 - 7	7/1 ARM
7 - 10	10/1 ARM, 30 year fixed, 15 year fixed
10+	30 year fixed, 15 year fixed

Loan Programs	Advantages	Disadvantages
Fixed Rate Mortgages 30 year fixed 15 year fixed	Monthly payments are fixed over the life of the loan Interest rate does not change Protected if rates go up Can refinance if rates go down	Higher interest rate Higher mortgage payments Rate does not drop if interest rates improve
Adjustable Rate Mortgages 10/1 ARM 7/1 ARM 5/1 ARM 3/1 ARM 1 year ARM 6 month ARM 1 month ARM	Lower initial monthly payment Lower payment over a shorter period of time Rates and payments may go down if rates improve May qualify for higher loan amounts	More risk Payments may change over time Potential for high payments if rates go up
Interest Only Programs 30 Year Fixed 10/1 ARM 7/1 ARM 5/1 ARM 3/1 ARM 1 year ARM 6 month ARM 1 month ARM	Increased cash flow Much lower monthly payment over interest-only period Qualifying at interest only payment increases buying power	No paydown of principal if interest only payment made Rates may be slightly higher than fully amortizing products More stringent underwriting guidelines
Balloon Mortgages 7 year 5 year	Lower initial monthly payment Lower payment over a shorter period of time Many balloon mortgages offer the option to convert to a new loan after the initial term	Risk of rates being higher at the end of the nitial fixed period Risk of foreclosure if you cannot make balloon payment or if you cannot refinance or if you cannot exercise the conversion option
First Time Buyer Programs	Lower down payment Easier to qualify Sometimes you may get lower rates	May be subject to income and property valuation limitations Some programs which have government subsidies may have a recapture tax if you sell the house too early
Stated Income Programs	Don't need to verify income Faster approval	Higher rates Higher down payment
No Point, No Fee Programs	No closing costs Less money required to close	Higher rates Higher down payment
Imperfect Credit Programs	Potential for re-establishing credit if you pay your mortgage on time when used for debt consolidation, you may be able to reduce your monthly debt payment	Higher rates Terms may not be as favorable Harder to get long term fixed loans Loans may have pre-payment penalties
Home Equity Line of Credit	You only borrow what you need Pay interest only on what you borrow Flexible access to funds Interest may be tax deductible	Rates can change. The maximum interest rate is normally high Payments can change Harder to refinance your first mortgage
Home Equity Fixed Loan	Fixed payments Interest may be tax deductible	Higher interest rates than on first mortgages Harder to refinance your first mortgage

Besides our standard loan programs, we also have a large number of unique programs to serve your needs:

Purchase a house with $0 down
Piggyback loans 80-10-10 or 80-15-5. No PMI payments even with 5% or 10% down
Debt consolidation programs
Home Improvement Loans
Qualify even if you may have been turned down before

Conventional

FHA

VHDA

Conventional

Conventional Loans are very common and are typically the most flexible. Loans amounts not exceeding $417,000 for single family homes are called "conforming" loans, while loans above $417,000 for single family homes are called "jumbo" loans, and loans greater than $1,000,000 are considered "super jumbo" loans. The down payment can be as little as 0% (with specialized financing) to as much as desired. Mortgage insurance may be required on some loans, but we have many products that do not require mortgage insurance.

FHA

FHA loans are insured by the Federal Housing Administration. Borrowers typically provide a small down payment, but with special associated programs the down payment can be obtained as a gift from a home advocacy non-profit association. A “Mortgage Insurance Premium” is paid to the FHA at closing, and the fee may be included in the loan. Additionally, there is a small monthly insurance premium added to the payment. The maximum loan amount for an FHA varies with location.

VA loans are "guaranteed" by the Veteran's Administration for eligible veterans. The most outstanding feature of a VA loan is the ability to obtain 100% financing. A funding fee is paid to the VA at closing, and the fee may be included in the loan. The loan is assumable to subsequent buyers. The maximum VA loan amount is $359,650.

VHDA

VHDA has developed an array of Homeownership Loan Programs designed to remove the barriers of buying a home and meet the changing needs of today’s low- and moderate-income consumer. Home mortgage loans are available for both first-time buyers and repeat homeowners.

Please contact a Loan Officer for assistance on any of our programs.