Founded in 1996, Fairway Independent Mortgage is one of the largest home lenders in the U.S., closing over $27 billion in 2023 alone.
Fairway earns high marks for customer service — with more than 700 branches nationwide, an easy-to-use online application and even the option for remote closings where allowed. It’s no wonder the Madison, Wisconsin-based lender ranked highly for customer satisfaction in J.D. Power’s 2024 Mortgage Origination Study.
We also like that Fairway offers a wide range of loan options — including reverse mortgages and renovation loans — and makes up to $7,000 in down payment grants available to eligible buyers in nearly two dozen metro areas.
Rates and fees aren’t available online, however, and Fairway doesn’t offer HELOCs or home equity loans.
Fairway Independent Mortgage Corporation
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Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
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Types of loans
Conventional, FHA, VA, USDA, physician, renovation, jumbo, refinancing, reverse mortgages
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Terms
10-, 15-, 20-, 25-, 30-year terms available for fixed-rate loans; adjustable-rate loans available with 5-, 7-, or 10-year introductory period
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Credit needed
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Minimum down payment
3% for conventional, 0% for USDA and VA loans
Pros
- Rated above average for customer satisfaction by J.D. Power
- $7,000 closing-cost grant with no income limits in select areas
- Offers FHA, VA and USDA loans
Cons
- Not transparent about rates and fees online
- No home equity loans or HELOCs
- Doesn’t service all of its loans
Fairway Independent Mortgage review
Pros and cons of Fairway Independent Mortgage
Pros
- Offers reverse mortgages and renovation loans
- $7,000 in down payment assistance for first-time homebuyers
- Highly rated for customer satisfaction by J.D. Power
Cons
- No home equity loans or HELOCs
- Mortgage rates and fees are not available online
- Fined for redlining by the Department of Justice
Fairway Independent Mortgage types of home loans
Fairway offers conventional, FHA, VA, USDA and jumbo loans in all 50 states and Washington, D.C..
- Fixed-rate: Borrowers keep the same rate for the life of their loan. Fairway offers fixed-rate terms of 10 years, 15 years, 20 years, 25 years and 30 years.
- Adjustable-rate: Adjustable-rate mortgages (ARMs) start with a fixed rate for a set period and then adjust at regular intervals. Fairway offers ARMS with a fixed rate for the first 5, 7 or 10 years, with the rate fluctuating thereafter.
- FHA loans: Backed by the Federal Housing Administration (FHA), FHA loans only require 3.5% down for borrowers with a 580 FICO score or 10% for borrowers with a 500.
- USDA loans: Backed by the U.S. Department of Agriculture, USDA loans allow eligible homebuyers to get zero-down mortgages in rural areas.
- VA loans: Veterans and active-duty service members can apply for this lower-rate loan without a down payment or private mortgage insurance.
- Jumbo loans: A jumbo loan exceeds the conforming limits set by the Federal Housing Finance Agency. Fairway provides loans of up to $3 million.
- Renovation loans: Fairway offers Fannie Mae’s HomeStyle Renovation loan and FHA 203K Home Renovation loans.
- Physician loans: Doctors, dentists and other medical professionals less than 10 years out of residency can qualify for a mortgage with no PMI and more flexible DTI requirements. (Some residents may be able to purchase a home up to 90 days before their residency starts.)
How do I qualify for a Fairway Independent Mortgage home loan?
- Credit score: Undisclosed. Lenders typically require a 620 FICO score for conventional loans.
- Down payment: 3% for conventional, 3.5% for FHA, 0% for USDA and VA
- Debt-to-income ratio: Undisclosed. Lenders typically prefer a DTI of 43% or lower.
Benefits and discounts
Fairway has one proprietary program to help first-time homebuyers.
Fairway Community Access
First-time homebuyers in eligible census tracts in 21 metro areas — including Baltimore, Chicago, Detroit, Miami, New York City, Phoenix and St. Louis — can qualify for a $7,000 grant for closing costs or a down payment. Other benefits include credits for an appraisal and title insurance and a one-year home warranty.
Refinancing
Fairway offers cash-out and rate-and-term refinancing, as well as reverse mortgages. It does not provide HELOCs or home equity loans.
- Credit score: Not disclosed. Typically, lenders require a 620 credit score.
- Debt-to-income ratio: Not disclosed. Lenders usually require borrowers to have a debt-to-income ratio of no more than 43% to 50%.
- Home equity: Not disclosed. Lenders usually like to see at least 20% equity in the home from refinancing applicants.
Customer service
Fairway Independent Mortgage ranked well above average on J.D. Power’s 2024 Mortgage Origination Satisfaction Study and has an A+ rating from the Better Business Bureau.
It has more than 700 branches nationwide, spread across every state except Alaska and West Virginia.
Customer service representatives are available at 800-201-7544, Monday through Friday from 9:30 a.m. to 6 p.m. ET. Unlike many other lenders, however, there are no evening or weekend hours.
Fairway’s website has no web chat feature and sample mortgage rates are unavailable online. It does offer remote closings where allowed, however, which many borrowers find convenient.
In October 2024, Fairway agreed to pay a $1.9 million civil penalty and provide $7 million in loan subsidies after the Consumer Financial Protection Bureau and the Department of Justice alleged the lender discriminated against Black borrowers in Birmingham, Alabama.
Fairway denied the allegations but agreed to settle.
How does Fairway Independent Mortgage compare to other lenders?
Here’s how Fairway stacks up to two leading mortgage providers.
Fairway | Guild | Flagstar | |
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Loan types | Conventional, FHA, VA USDA, jumbo, renovation, physician loans, reverse mortgage, refinancing, | Conventional, FHA, VA, USDA, Arrive Home, Zero Down, jumbo, renovation, refinancing, reverse mortgages, home equity loans | Conventional, FHA, VA USDA, jumbo, HomeReady, Home Possible, professional, construction, non-qualifying mortgages, manufactured home loans, refinancing, home equity loans, HELOCs |
Credit score | Undisclosed | 620 for conventional; 540 for FHA, VA and USDA; 600 for Zero Down loan; 680 for jumbo | 620 for conventional, 580 for FHA and VA, 600 for Destination Home, 680 for jumbo. Nontraditional credit sources considered |
Terms | Fixed-rate: 10-, 15-, 20-, 25- and 30-year terms Adjustable: terms starting with a fixed-rate of 5,7 or 10 years |
Fixed rate terms for 10 or 30 years, Adjustable terms of 5/6, 7/6 or 10/6 | Fixed rate terms of between 8 and 40 years, Adjustable terms starting with a fixed rate for the first 5, 7 or 10 years |
Down payment and closing cost assistance | $7,000 grant for qualified borrowers in 21 metro areas | Up to $5,000 for homebuyers in specific census tracts, up to $2,500 in closing costs for low-to-moderate-income homebuyers with 3% down payment | Up to $10,000 for first-time homebuyers |
Best for | Customer service | Down payment assistance | Borrowers with poor or no credit |
Fairway Independent Mortgage vs. Guild Mortgage
Fairway and Guild are both major nonbank lenders with a diverse range of mortgage options, including government-sponsored programs like FHA, VA, and USDA loans, as well as renovation loans and physician loans.
Both companies also made our list of the best reverse mortgage lenders.
Guild is a better choice for borrowers needing down payment assistance (DPA), however: Fairway’s Community Access grant is limited to first-time buyers in specific metro areas, while Guild has options for a wide range of borrowers.
Guild Mortgage Reverse Mortgage
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Annual Percentage Rate (APR)
Apply for personalized rates
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Types of reverse mortgages
HECM reverse, reverse refinance loan, jumbo reverse loan, purchase reverse loan
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Minimum equity
Pros
- Available in 49 states
- Provides detailed explanation of loan options on website
Cons
- Doesn’t outline fees and rates on website
- There is no online application option
Guild’s Zero Down grant funds up to 5% of a down payment on an FHA mortgage, for example. The 3-2-1 Home Plus program provides $2,500 to low-to-moderate income borrowers who put at least 3% down. Freddie Mac and Fannie Mae also offer thousands in credits for first-time homebuyers.
Read: CNBC Select review of Guild Mortgage
Fairway lends in all 50 states, while Guild does not operate in New York. And Fairway was ranked significantly higher on J.D. Power’s 2024 Mortgage Origination Satisfaction Study. If you are interested in in-person assistance, Fairway has more than twice the number of branches than Guild.
Fairway Independent Mortgage vs. Flagstar Bank
This one is a real toss-up: Flagstar has a wider array of loan options — including construction loans and non-qualifying mortgages (for buyers who don’t meet credit or income requirements), as well as HELOCs and home equity loans.
Flagstar Bank Home Equity Loan
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Annual Percentage Rate (APR)
Apply online for personalized rates
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Loan minimum and maximum
Minimum: $10,000; Maximum: $1 million
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Terms available
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Credit needed
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Minimum equity required
Pros
- No closing or prepayment costs
- High maximum
- Low minimum
Cons
- Minimum equity is higher than most other lenders
If you’re looking for a reverse mortgage, however, only Fairway has them.
Read: Flagstar Bank mortgage review
Fairway also consistently ranks highly on J.D. Power’s customer satisfaction study and has physical branches in 48 states. Flagstar typically lands below average on J.D. Power surveys, though, and only has physical locations in about nine states.
How do I apply for a mortgage with Fairway Independent Mortgage?
You can apply for a home loan with Fairway online or in person with a loan officer at one of more than 700 locations across the country. You can also call 800-201-7544, on weekdays from 9:30 a.m. to 6 p.m. ET.
You can also contact one of Fairway’s local loan officers directly through the site, and they will walk you through the process.
To apply for a preapproval letter, you’ll need your Social Security number, ID, proof of income, banking statements and other documentation. You’ll also have to submit to a credit check.
Once you find a home you’re interested in, you’ll let Fairway know you’re moving forward and it will begin the underwriting process, schedule an appraisal and run a title search. Then, you’ll (hopefully) close on the property. Fairway makes digital closings available where possible.
Is a Fairway Independent Mortgage mortgage right for me?
Fairway is an excellent option for homebuyers who demand a high standard of customer service, including in-person options, and for borrowers looking for the full range of government-backed mortgages and uncommon options like reverse mortgages and physician’s loans.
It doesn’t make mortgage rates available online, however, and if you’re looking for a HELOC or home equity loan, you’ll need to explore other options.
Fairway Independent Mortgage FAQs
Does Fairway Mortgage sell its loans?
Yes, Fairway Independent Mortgage does sell its loan to third-party mortgage servicers that handle sending out statements and processing payments, including Mr. Cooper and Chase Bank. Your mortgage servicer may change several times during the term of your loan.
Does Fairway Mortgage offer home equity loans or HELOCs?
No, Fairway Mortgage does not offer home equity loans or lines of credit. However, it does offer cash-out refinance products, which allow homeowners to borrow against their home equity.
Is Fairway Mortgage reputable?
One of the largest home loan lenders in the U.S., Fairway regularly ranks highly on J.D. Power mortgage origination surveys and has earned an A+ from the Better Business Bureau, the agency’s highest grade. It offers purchase mortgages, refinancing and reverse mortgages in all 50 states and Washington, D.C. However, the Justice Department and CFPB accused Fairway of redlining in Alabama and, in October 2024, the company agreed to pay a $1.9 million civil penalty and millions more in loan subsidies.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of home loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties and we pride ourselves on our journalistic standards and ethics.
Our methodology
CNBC Select reviews mortgage products using a variety of criteria — including the types of loans offered, average rates, fees, terms, nationwide availability, down payment assistance options, customer service and the online experience.
In addition, we incorporate findings from independent sources, including J.D. Power’s mortgage origination and mortgage servicing satisfaction surveys and ratings from the Better Business Bureau.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.