Fairway Independent Mortgage Company Reverse Mortgage Review
- Multiple payment options, including cash, fixed monthly advances, or a line of credit
- No income tax
- Must budget for property taxes, homeowners insurance, and maintenance
Fairway Independent Mortgage Corporation was founded in 1996 by Steve Jacobson. Its mission is to provide excellent customer service and help them navigate the mortgage process, whether it’s homebuying, refinancing, or using home equity. It aims to do this by being transparent, communicative, and punctual.
The ideal customer for Fairway doesn’t seem to be the seasoned investor taking out a commercial real estate loan. Instead, it’s the average buyer or homeowner who needs a personalized approach to their mortgage needs.
Fairway has three options for homeowners looking to tap into their home equity. It offers refinance loans and renovation loans, as well as a reverse mortgage loan option.
Table of Contents Skip to Section
- Fairway Independent Mortgage Company reverse mortgage at a glance
- How does Fairway Independent Mortgage Company’s reverse mortgage work?
- Who’s eligible for a Fairway Independent Mortgage Corporation reverse mortgage?
- How do you repay a reverse mortgage from Fairway Independent Mortgage Company?
- More about Fairway Independent Mortgage Corporation’s reverse mortgage
- Fairway Independent Mortgage Company reverse mortgage FAQ
Fairway Independent Mortgage Company reverse mortgage at a glance
In our Fairway Independent Mortgage Company review, we’ll show you how reverse mortgages work, who’s eligible, how to repay a reverse mortgage, the pros and cons, and how to apply for a reverse mortgage.
| Term | Details |
|---|---|
| Loan amounts | HECM up to $1,149,825 Jumbo reverse mortgage up to $4 million |
| Fees | Taxes, insurance, and maintenance fees |
| Unique features | Loan disbursement via a line of credit, lump sum, monthly payments, or a combination of the three |
How does Fairway Independent Mortgage Company’s reverse mortgage work?
To qualify for a reverse mortgage, you must be at least 62 years old and have enough equity in your home to qualify for a reverse mortgage. If you’re approved, Fairway disburses a loan amount equal to the chosen percentage of your home’s equity.
Afterward, you don’t need to make any payments on the loan principal or interest, but you are responsible for property taxes and insurance. What makes reverse mortgages unique is that the loan amount isn’t due until you permanently move out, sell your home, or pass away.
The amount you can borrow with a reverse mortgage depends on your home equity, your home’s value, and the type of reverse mortgage you choose.
Fairway offers three types:
- Home equity conversion mortgage (HECM): This loan, insured by the Federal Housing Administration (FHA), has a maximum loan amount of $1,149,825 in 2024. The borrower must also pay a mortgage insurance premium.
- Jumbo reverse mortgage: Loan limit is not determined by FHA, nor is the borrower required to pay mortgage insurance. Fairway’s loan limit is $4 million.
- Reverse mortgage for purchase loan (H4P): Used as a loan to purchase a new home. Borrower sells their home and puts down 40% to 60%. Fairway funds the remaining purchase amount. The borrower does not have to make monthly payments but is required to maintain the home and pay for property insurance and property taxes.
Regardless of which reverse mortgage you choose, you’ll pay closing costs. Like a first mortgage, the lender will likely charge an origination fee. But with a reverse mortgage, it’s capped at $6,000. You’ll also pay real estate-related costs (like an appraisal and title search) and a mortgage insurance premium.
For a HECM and jumbo reverse mortgage, how you receive your money is up to you. You can choose a lump sum, through monthly payments, a line of credit, or a combination of all three.
Who’s eligible for a Fairway Independent Mortgage Corporation reverse mortgage?
Fairway requires all borrowers to be age 62 or older. If you have a spouse, he or she must also be 62 or older to be on the loan.
If you choose to take out a HECM, the loan cannot exceed the FHA limits for your county. If your home’s value exceeds FHA limits, you may still be able to take out a reverse mortgage capped at FHA limits.
However, your home may qualify for a jumbo reverse mortgage.
| Requirement | Details |
| Eligible properties | Single-family home, 2 – 4 unit dwelling, or an FHA-approved condo |
| Eligible states | All 50 states |
How do you repay a reverse mortgage from Fairway Independent Mortgage Company?
You must repay a reverse mortgage with Fairway Independent Mortgage Corporation, but monthly repayment is not necessary. You or your heirs must repay the loan once you move out, sell the home, or pass away.
If a spouse is not on the loan and survives the loan holder, they may be able to stay in the home and defer payments. However, they must still maintain the property and pay property taxes and insurance.
Reverse mortgages are considered non-recourse loans, which means they’re secured by a specific asset, so Fairway Independent cannot seek any money beyond the value of your home. When you die or sell your home, Independent Mortgage Corporation gets the percentage due based on the amount of equity you signed over.
Pros and cons of Fairway Independent Mortgage Corporation’s reverse mortgage
Here’s what to consider before applying for a reverse mortgage with Fairway Independent.
Pros
-
Multiple reverse mortgage options
These include H4P, HECM, and jumbo reverse mortgage
-
Positive online reviews
-
Available in all 50 states
Cons
-
Must speak with loan officer before you can apply
-
HUD counseling required
Fairway Independent Mortgage has positive reviews and is available in all 50 states. The lender also offers three reverse mortgage options, so you may be able to find a loan product that fits your needs.
As for cons, you can only go so far before you must speak with a loan officer. However, with reverse mortgages, this is often for the best because it’s a complex loan. And like any other lender’s reverse mortgage, a HUD-approved counseling session is required to make sure you understand the loan terms.
Is Fairway Independent Mortgage Company a reputable lender?
It’s helpful to check out customer reviews of lenders from several sources to get an idea of the business’s commitment to satisfaction and to understand what you might expect as a customer.
| Source | Customer rating | Number of reviews |
| Trustpilot | 3.6 out of 5 | 2 |
| 4.9 out of 5 | 260 | |
| Better Business Bureau (BBB) | 4.89 out of 5 | 866 |
On Google, Fairway has excellent ratings. Most customers praise Fairway for its customer service, speed, and overall superb communication.
Fairway is one of the few mortgage companies that is BBB-accredited. This demonstrates the lender has a history of being transparent and advertising honestly. It has an A+ grade with the company. Fairway has closed 43 complaints in the past three years, which means the company itself has reached out and resolved any issues those customers voiced with BBB.
How to apply for a Fairway Independent Mortgage Corporation reverse mortgage
Fairway doesn’t let you get too far into the application process before you must speak to a representative. You’ll enter your personal contact information then visit a page stating a reverse mortgage specialist will contact you as soon as possible.
It appears to want to prevent homeowners from applying if they don’t qualify, which is helpful for your time and credit score.
After getting the green light to move forward, you’ll take the following steps:
- Schedule a counseling session: Learn more about the intricacies of a reverse mortgage.
- Fill out an application: Fairway Independent Mortgage Corporation requires the following information:
- Personal information, including your spouse’s
- Income
- List of assets
- List of debts
- List of monthly expenses
- Get an appraisal: This is to determine its current market value.
- Review documents: Review and sign the loan disclosure once it is approved.
- Close: Sign necessary documents, including the loan agreement.
- Receive loan amount: Funds are disbursed in the way you agreed to in the loan documents.
If you’re denied, you may be able to appeal Fairway’s decision. Fairway should send a detailed letter explaining why you were denied a reverse mortgage loan. If you can address and remedy the reason given for your denial, you may be able to get it to reconsider.
How do other home equity products compare to Fairway Independent Mortgage Corporation’s reverse mortgage?
A reverse mortgage is much different from many other home equity products.
For example, a home equity line of credit (HELOC) lets you draw on a credit line up to a certain percentage of your home equity. Borrowers may draw, repay, and reuse the line of credit as needed, with interest only applied to any outstanding balance.
A home equity loan also differs from a reverse mortgage. Borrowers make fixed monthly payments until the loan is repaid, and the term can be five to 30 years. To qualify, borrowers need at least 10% to 20% equity in their home.
A cash-out refinance requires borrowers to replace their current mortgage with a new, higher amount. The borrower gets any difference between the amount owed and the new loan amount in cash. Loan terms for cash-out refinances are generally 15 to 30 years.
Fairway Independent Mortgage Company reverse mortgage FAQ
How long does it take to receive funds from Fairway Independent Mortgage Company?
Upon approval of your reverse mortgage application, the Fairway Independent Mortgage Company can disburse funds within five business days.
This timeline may fluctuate depending on a variety of factors, such as the urgency of fund disbursement and the nature of your specific agreement with the lender. It’s crucial to communicate with Fairway about your needs—this way, you can better determine when to expect your funds.
Are there any insurance requirements?
Yes. When applying for a reverse mortgage with Fairway Independent Mortgage Company, you must maintain a homeowners insurance policy.
In addition, it’s compulsory to have Federal Housing Administration (FHA) mortgage insurance. This safeguards you and the lender from losses in the event you default on loan repayments.
Can you back out of a reverse mortgage contract?
Yes, you can back out of a reverse mortgage contract with Fairway. But backing out of the contract after the three-day rescission period has passed may result in penalties.
To avoid any complications, consult the lender first. Always review the terms of your contract before signing to alleviate potential regrets or misunderstandings.
The post Fairway Independent Mortgage Company Reverse Mortgage Review appeared first on LendEDU.