Home Equity Conversion Mortgages (HECMs), more commonly known as reverse mortgages, help seniors access the equity they have built in their homes. You could use a reverse mortgage to fund a passion project, purchase a new home (HECM for purchase) or even eliminate your monthly mortgage payment. Fairway Independent Mortgage Corporation is one company that offers these lending products.
This guide covers the reverse mortgage lending products offered by Fairway, along with the pros and cons of choosing this provider over one of the alternatives. Read on to learn if Fairway could be right for your reverse mortgage.
Best HECM for purchase
Fairway Independent Mortgage offers several reverse mortgage products, but its HECMs for purchase stand out. A HECM for purchase is a reverse mortgage option that allows those 62 and older to use the loan proceeds to purchase a new principal residence. Depending on the circumstances, Fairway may be able to close your HECM for purchase within 17 days of receiving your application.
Fairway Independent Mortgage Corporation reverse mortgage pros and cons
- Fast closing times on HECMs for purchase
- Publishes helpful educational resources and tools
- Has hundreds of physical branch locations across the country
- Strong customer reviews
- May not remain your loan servicer after closing
- Doesn't list interest rates or fees online
Fast closing times on HECMs for purchase
Fairway may be able to close your HECM for purchase within 17 days of your loan application process. For perspective, reverse mortgages generally take 30 to 60 days to close with most providers. So the company is a good choice if you are in a rush to get into your dream house.
Publishes helpful educational resources and tools
Fairway has a robust online resource center built specifically for reverse mortgage products. It contains articles, how-to guides and an ebook on reverse mortgages. The resource center also has a reverse mortgage calculator, which you can use to quickly and easily assess the financial ramifications of different-sized reverse mortgages.
Has hundreds of physical branch locations across the country
Fairway can be a good fit if you prefer going into a physical lending office and talking face to face with a loan officer about your reverse mortgage options. The company has hundreds of physical branches across the United States, so there may be a chance you have at least one office within driving distance.
Strong customer reviews
Fairway Independent Mortgage reviews are strong. The company has earned an impressive 4.96 out of 5-star rating on its Better Business Bureau page. This is based on more than 2,000 user-submitted reviews of the company. However, it is worth mentioning that these reviews are for Fairway Independent Mortgage Corporation as a whole, rather than for its reverse mortgage department specifically.
May not remain your loan servicer after closing
If you take out a reverse mortgage through Fairway, the company may pass the loan off to another servicing company. A loan servicer is a business that manages most of the day-to-day aspects of your loan, including:
- Monthly payments
- Payments of taxes and insurance premiums
- Adjusting rates on adjustable-rate mortgage loans
- Providing payment assistance during difficult times
Because all of these recurring tasks go through your loan servicer, you'll engage with that company on a regular basis. This could end up causing you headaches if Fairway sends your reverse mortgage to a servicing company that offers poor customer service.
Doesn’t list interest rates or costs online
You won’t find information on reverse mortgage interest rates or fees on Fairway Independent’s website. This means you need to contact the company directly to find the latest Fairway Independent Mortgage rates to see if it’s a viable option for you, which can be an inconvenience.
Fairway Independent Mortgage reverse mortgage offerings
The Fairway Independent Mortgage Company offers several reverse mortgage products to choose from. We take a look at each below.
A home equity conversion mortgage (HECM) is a type of home equity loan designed specifically for seniors and backed by the federal government. You need to be at least 62 to qualify for one and meet other criteria established by the United States Department of Housing and Urban Development.
Fairway Independent offers fixed-rate HECMs. This means the interest rate on your reverse mortgage loan stays the same throughout its lifespan. Fixed-rate HECMs are only available as one time, lump sum payments where interest is accrued on the entire loan balance. This is a good option if you need a large amount of money up front. The fixed-rate HECM is also a “single draw” option, meaning if you pay back any portion of the balance it won’t be available again.
Fairway also has adjustable-rate HECMs. Rate fluctuations on adjustable-rate HECMs are based on interest rate changes in the broader marketplace. The main difference between fixed and adjustable rate HECMs is the way the funds are disbursed. Adjustable rate HECMs are a more flexible option because they are “multiple draw.” These HECMs can be disbursed as monthly payments, term payments, a lump sum, or as lines of credit.
Interest only accrues on the amount borrowed, not on the entire amount as with the fixed rate option. Also unlike a fixed-rate reverse mortgage, repaid funds will be available to borrow again if you so require. Adjustable rate HECMs are a good idea if you do not require all the funds up front and want more control over how your loan is disbursed.
HECM for purchase reverse mortgage
You can also use the proceeds from a Fairway Independent HECM to purchase a new home. This product can be a good option if you want to:
- Create purchasing power to upsize or downsize into a new home.
- Free up cash flow by minimizing or eliminating monthly mortgage payments on a new house.
- Qualify for a new mortgage in retirement.
As highlighted previously, the standout feature of this product is Fairway’s ability to close within 17 days of receiving your application, though this isn’t a guarantee.
Jumbo reverse mortgage
Fairway Independent Mortgage has Jumbo reverse mortgage loans for retirees looking to borrow against houses worth more than approximately $1.08 million. The main advantage of this product is being able to borrow more than you would be able to through a standard reverse mortgage. Unlike standard reverse mortgages, jumbo mortgages don’t necessarily need to be FHA-approved.
Fairway Independent Mortgage reverse mortgage pricing
Fairway doesn’t list its reverse mortgage pricing online. Part of the reason for this is that interest rates can change over time and may vary based on factors like your credit score.
That said, your interest rate on a reverse mortgage is just part of the loan’s fee structure. You will also likely be responsible for paying various one-off or ongoing fees, including:
- Origination fees
- Closing costs
- Private mortgage insurance premiums
- Servicing fees
- HECM counseling costs
- Property appraisal fees
Fairway Independent Mortgage reverse mortgage financial stability
Fairway is a privately held company. That means it isn’t required to share as much financial information with the public as companies listed on stock exchanges. This makes it more difficult to assess the company's financial stability.
There's no reporting to suggest that Fairway Independent Mortgage Corporation is anything other than a financially healthy business. It’s still smart to be cautious before entering into a long-term agreement with any provider.
Fairway Independent Mortgage reverse mortgage accessibility
This section considers how accessible Fairway Independent is to different types of reverse mortgage borrowers.
Fairway Independent’s availability is one of its strong suits. The company has hundreds of physical branches and is licensed to lend in all 50 states. This makes it possible to go in, speak with a mortgage professional and get personalized advice from an expert.
Reverse mortgages are intended for senior homeowners, so they won’t be available if you’re a young borrower. However, Fairway offers other mortgage products that could fit.
You can contact Fairway online by filling out a form requesting a follow-up from a loan professional. You can also contact Fairway Independent Mortgage customer service by phone from Monday through Friday, 8:30 a.m. to 5:00 p.m. CT.
Fairway lets customers apply for loans and request information however they prefer. You can call, visit a branch, leave a message online requesting follow-up, or download the company’s highly rated mobile app. This flexibility creates an overall strong user experience, although your individual results can vary.
Fairway Independent Mortgage reverse mortgage customer satisfaction
Customer satisfaction rates are high for Fairway mortgages. In J.D. Power’s 2022 U.S. Mortgage Origination Satisfaction Study, the company tied with Citi to take home third overall, behind only Chase and Rocket Mortgage.
These results are borne out in Fairway Independent Mortgage’s customer reviews on the company’s Better Business Bureau page. Fairway has a 4.96 out of 5-star rating with more than 2,000 reviews. On the Consumer Financial Protection Bureau, 119 complaints have been filed over the past three years. This is a very small percentage of the loans they have originated and involve multiple issues, including customers who have struggled to pay their mortgages.
Fairway Independent Mortgage reverse mortgage FAQs
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How we evaluated Fairway Independent Mortgage Reverse Mortgage
While creating our Fairway Independent Mortgage review, we considered each of the following factors:
- Product options: We evaluated the range of reverse mortgage products offered by Fairway and considered how they appealed to different types of consumers.
- Consumer satisfaction: We looked at Fairway Independent Mortgage Corp reviews and ratings awarded by leading independent organizations. We assessed overall satisfaction levels from previous Fairway customers. We also looked at Fairway Independent Mortgage Corporation complaints to the Consumer Financial Protection Bureau.
- Accessibility: We considered how easy it was for customers to engage with Fairway using whichever method they prefer.
- Closing timelines: We evaluated closing timelines to assess how quickly customers can move through Fairway’s lending process.
- Educational resources: We looked at Fairway’s online educational resources and evaluated their usefulness to borrowers.
These may or may not be all of the factors that matter to you when evaluating Fairway Independent Mortgage. You may want to consult other Fairway Independent Mortgage Corporation reviews before making a decision. You can also read our guides covering what a reverse mortgage is and the pros and cons of reverse mortgages to learn about the factors that matter while evaluating these lending products.
Summary of Money's Fairway Independent Mortgage Reverse Mortgage review
Fairway Independent is a highly-rated mortgage origination company with a compelling suite of reverse mortgage options. It stands out with a fast closing timeline, plenty of physical branches and helpful online tools. However, the company may not be the best reverse mortgage option for everyone, as it may pass your loan offer to another servicer after you close and doesn’t list its rates and fees online.