Mortgage Options

FHA MORTGAGE

Opening the Doors to Homeownership

Home loans insured by the Federal Housing Administration (FHA) can make it easier for you to qualify to purchase or refinance a home. This loan option offers flexible qualification guidelines to help people who may not qualify for a conventional mortgage.

FHA Loan Highlights

FHA loans are widely used by first-time homebuyers and people with low-to-moderate incomes since this government-insured mortgage features:

• Low down payments
• Flexible income and credit requirements
• Fixed- and adjustable-rate mortgages
• Loans for 1-4 unit properties and condos may be available
• Down payment funds can be a gift from a relative or employer*
• Home sellers can contribute up to 6% of the closing costs
• *Subject to underwriting review and approval.

FHA Loan Programs

ADJUSTABLE-RATE MORTGAGE

FHA’s adjustable-rate mortgage (ARM) insures home purchases or refinances with rates that can change after the initial fixed-rate period. Depending on market fluctuations after this initial fixed-rate period, your monthly payments could change due to rates increasing or decreasing. An ARM could be the right choice for you if you plan on staying in your home for just a few years, you’re expecting a future pay increase, or the current interest rate on a fixed-rate mortgage is too high.

FIXED-RATE MORTGAGE

Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term of the loan. With FHA loans, you can select a 30-, 20- or 15-year term. The main difference is the lower term options have higher monthly payments, which also means you are building home equity faster. Keep in mind you can use equity as a down payment for your next home or a future cash-out refinance. If you plan on staying in your home for a longer time frame, a fixed-rate mortgage could be the right solution for you.

VA MORTGAGE

Welcoming Veterans Home

Here at Fairway, we are proud to help our Service Members and Veterans achieve the American Dream of homeownership.

Home loans backed by the Department of Veterans Affairs (VA) provide affordable home financing options for eligible Service Members, Veterans and surviving spouses.

VA Loan Highlights

Since VA loans often require no down payment* with lower closing costs, you can help keep your savings secure. VA loans also feature:

• No prepayment penalties
• No private mortgage insurance (PMI)
• 100% financing with full VA entitlement* 
• Fixed- and adjustable-rate mortgages 
• VA financing fees can be “rolled” into the loan amount
• Variety of eligible property types, including townhomes and VA-approved condos

*A down payment is required if the borrower does not have full VA entitlement or when the loan amount exceeds the VA county limits. VA loans subject to individual VA Entitlement amounts and eligibility, qualifying factors such as income and credit guidelines, and property limits.

VA Loan Eligibility

In order to be eligible for a VA loan, you must first obtain a valid Certificate of Eligibility (COE). Your COE is based on length of service or service commitment, duty status and character of service.

VA Loan Programs

ADJUSTABLE-RATE MORTGAGE

If you are currently serving in the military with a chance of relocating in the next few years, the flexibility of an adjustable-rate mortgage (ARM) could be the right option for you. ARMs offer lower introductory interest rates that can change after the initial fixed-rate period. Depending on market fluctuations after this initial fixed-rate period, your monthly payments could change due to rates increasing or decreasing.

FIXED-RATE MORTGAGE

Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term of the loan. You can select a 30- or 15-year loan term. The main difference is the 15-year option has higher monthly payments, which also means you are building home equity faster. Keep in mind you can use equity as a down payment for your next home or a future cash-out refinance. If you plan on staying in your home for a longer time frame, a fixed-rate mortgage could be the right solution for you.

CASH-OUT REFINANCE

If you’re already a homeowner, a cash-out refinance may help you pay for major expenses like college tuition, debt or home improvements. This option allows you to take cash out of your home equity by replacing your current mortgage with a new loan that is more than the amount owed. You can also refinance a non-VA loan into a VA loan with a cash-out refinance.

INTEREST RATE REDUCTION REFINANCE LOAN

An interest rate reduction refinance loan (IRRRL) may help lower your interest rate and reduce your monthly payments by refinancing your existing VA loan. You can also refinance an adjustable-rate mortgage (ARM) into a fixed-rate mortgage with this option. However, you cannot receive cash from loan proceeds with an IRRRL.

USDA/RURAL DEVELOPMENT 

Live Comfortably Outside of City Limits

Home loans guaranteed by the United States Department of Agriculture (USDA) provide affordable financing options for properties located in designated small towns, suburbs and exurbs. This program helps eligible low- to moderate-income families achieve homeownership by offering a no down payment option.

USDA Loan Highlights

With flexible requirements, USDA loans feature:

• 100% financing + required guarantee fee = 102% of the appraised value
• Low FICO score requirements
• Low interest rates
• Low closing costs
• Gift funds can be used for closing costs
• 30-year, fixed-rate mortgage

USDA Loan Eligibility

Eligibility is based on the property size, location and condition along with income and other qualifying factors. Some of these requirements include:

• Property must be located in a USDA designated rural area
• Maximum loan limits vary based on location
• Household members can have a total income of up to 115% of the medial income for the area
• Household must be able to afford the mortgage payment, including property taxes, homeowners insurance and the annual guarantee fee payable on a monthly basis

RENOVATION MORTGAGE 

Turn a Fixer Upper into Your Dream Home

When shopping for a home, you may come across properties that aren’t quite what you’re looking for but have the potential to be your dream home with some repairs or renovations. With a renovation loan, you can roll the cost of financing or refinancing a home and repairs into one loan – saving you time and money.

HomeStyle Renovation Loan

You can use a HomeStyle renovation loan to cover costs of repairs, remodels, renovations or energy-efficient improvements on a primary residence, a second home or an investment property. There are no required improvements or restrictions on the types of repairs allowed or a minimum dollar amount for the repairs. However, repairs or improvements must be permanently affixed to the real property, add value to the property, and be completed by a licensed contractor.

Limited 203(k) Rehabilitation Mortgage

In addition to funding your new home, an FHA Limited 203(k) can provide up to $35,000 (including a contingency reserve) in additional funds to help make a few non-structural repairs or renovations such as updating a kitchen or bathroom, adding new flooring, purchasing new appliances, or repairing the roof.

Standard 203(k) Rehabilitation Mortgage

If your potential dream home needs more than $35,000 in renovations or the repairs are structural, the Standard FHA 203(k) might be the right solution. This program removes the restrictions of the limited option to allow for major home remodeling. A Standard FHA 203(k) can provide additional funds* to help with eligible repairs including moving or removing walls, minor pool repairs, and landscaping.

*Final disbursement of funds is subject to final inspection.

JUMBO MORTGAGE 

A jumbo loan, or non-conforming mortgage, allows you to purchase more expensive homes with a loan amount above the conforming limit set by the Federal Housing Finance Agency. In most areas of the country, the conventional conforming loan limit is $647,200; however, the limit is $970,800 in higher cost areas. If you have a low debt-to-income (DTI) ratio and a higher credit score, but you don’t have enough funds to bring the loan amount under the conforming limit, a jumbo loan might be the right option for you.

Jumbo Loan Highlights

Highlights of non-conforming loans include:

• Finance a home over the maximum loan amount established by the Federal Housing Finance Agency
• Higher purchase limits allow borrower to purchase more house
• Convenience of one loan for the entire loan amount
• Primary residence, second home or investment property
• Fixed-rate or adjustable-rate mortgages (ARM)

ADJUSTABLE-RATE MORTGAGE 

Providing Flexibility for Homeowners

An adjustable-rate mortgage (ARM) is a loan term option with interest rates that can change periodically after the initial fixed-rate period. After this introductory period, monthly payments are susceptible to increases or decreases based on market fluctuations, which can also affect the monthly payment.

Adjustable-Rate Mortgage Highlights

An ARM could be the right choice for you if you plan on staying in your home for just a few years, you’re expecting a future pay increase, or the current interest rate on a fixed-rate mortgage is too high.

Highlights of an adjustable-rate mortgage include:

• Lower initial monthly payments
• Possibility to qualify for higher loan amounts
• Rates and Payments may decrease based on the index rate

FIXED-RATE MORTGAGE 

Secure Your Financial Future

Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term of the loan. Plus, you have the option of selecting a 10, 15, 20, 25 or 30-year term. The main difference is the lower term options have higher monthly payments, which also means you are building home equity faster. Keep in mind you can use equity as a down payment for your next home or a future cash-out refinance. If you plan on staying in your home for a longer time frame, a fixed-rate mortgage could be the right solution for you.

Fixed-Rate Mortgage Highlights

A fixed-rate mortgage features:

• Consistent monthly payments and interest rates
• Protection from rising interest rates
• Mortgage tax interest deduction*
• Different term length options

*This does not constitute tax advice. Please consult a tax advisor regarding your specific situation.

MORTGAGES FOR MEDICAL PROFESSIONALS 

Fairway has home financing solutions available that cater to the unique needs of doctors.

Here are some highlights of our Physician Loan Program:

ELIGIBLE BORROWERS

• Existing medical doctors, dentists, dental surgeons, and vets who are actively practicing and are within 10 years of completing their original residency or fellowship
• Newly licensed medical residents who are currently employed, in residency or fellowship
• Newly licensed medical students who are about to begin their new employment/residency within 60 days of closing
• Medical Resident (Educational License)
• Medical Doctor (MD)
• Doctor of Dental Science (DDS)
• Doctor of Dental Medicine or Surgeon (DMD)
• Doctor of Optometry (OD)
• Doctor of Ophthalmology (MD)
• Doctor of Podiatric Medicine (DPM)
• Doctor of Osteopathy (DO)

CASH-OUT REFINANCE 

With a refinance, you pay off your current loan with a new loan and restructure the mortgage to fit your needs. You could also save a considerable amount of money over the life of your loan and potentially improve your overall financial outlook. Determine if refinancing is right for you by using our refinance calculator.

CASH-OUT REFINANCE*

A cash-out refinance allows you to take cash out of your home equity by replacing your current mortgage with a new loan that is more than the amount owed. This option can help you pay for major expenses like college tuition, debt or home improvements.

*Appraised property value may affect loan amount.

VA CASH-OUT REFINANCE

Home loans backed by the Department of Veterans Affairs (VA) provide affordable home financing options for eligible Service Members, Veterans and surviving spouses.

If you’re already a homeowner, a cash-out refinance may help you pay for major expenses like college tuition, debt or home improvements. This option allows you to take cash out of your home equity by replacing your current mortgage with a new loan that is more than the amount owed. You can also refinance a non-VA loan into a VA loan with a cash-out refinance.

REFINANCE 

Save Money with a Refinance

With a refinance, you pay off your current loan with a new loan and restructure the mortgage to fit your needs. You could also save a considerable amount of money over the life of your loan and potentially improve your overall financial outlook. Determine if refinancing is right for you by using our refinance calculator.

Refinance Highlights

Refinancing may be the right decision if your home value significantly increased or current interest rates are low. You may even be able to:

• Shorten your loan’s term to save even more money
• Refinance to a lower interest rate which might also lower your monthly payments
• Convert your adjustable-rate mortgage (ARM) to a fixed-rate loan which will keep your payments safe from possible interest rate increases
• Combine a first and second lien to a single loan for simplicity and savings
• Consolidate debt from higher interest rate credit cards or subordinate financed loans into one loan which may result in lower monthly payments
• Turn your home equity into cash

Refinance Options

ADJUSTABLE-RATE MORTGAGE (ARM)

Typically adjustable-rate mortgages offer low introductory rates and payments that can change periodically after the initial fixed-rate period. An ARM could be the right choice for you if you plan on staying in your home for just a few years, you’re expecting a future pay increase, or the current interest rate on a fixed-rate mortgage is too high.

FIXED-RATE MORTGAGE

Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term of the loan. You can select a 30-, 20- or 15-year term, but keep in mind lower term options have higher monthly payments which means you are building home equity faster. If you plan on staying in your home for a longer time frame, a fixed-rate mortgage could be the right solution for you.

FHA STREAMLINED REFINANCE

If you currently have an FHA mortgage, we may be able to help you reduce your interest rate and lower your monthly mortgage payments with an FHA streamlined refinance. Plus, a streamlined refinance requires limited borrower credit documentation and underwriting for an even easier process. This may be the right solution if you want to convert your ARM to a fixed-rate loan.

RATE & TERM REFINANCE 

FHA STREAMLINED REFINANCE

If you currently have an FHA mortgage, we may be able to help you reduce your interest rate and lower your monthly mortgage payments with an FHA streamlined refinance. Plus, a streamlined refinance requires limited borrower credit documentation and underwriting for an even easier process. This may be the right solution if you want to convert your ARM to a fixed-rate loan.

VA INTEREST RATE REDUCTION REFINANCE LOAN

Home loans backed by the Department of Veterans Affairs (VA) provide affordable home financing options for eligible Service Members, Veterans and surviving spouses.

An interest rate reduction refinance loan (IRRRL) may help lower your interest rate and reduce your monthly payments by refinancing your existing VA loan. You can also refinance an adjustable-rate mortgage (ARM) into a fixed-rate mortgage with this option. However, you cannot receive cash from loan proceeds with an IRRRL.