Fairway Independent Mortgage Corp., the third-largest U.S. retail mortgage lender, on Wednesday announced a new program to aid prospective first-time homebuyers in select communities across the country.
The Fairway Community Access (FCA) program is available to first-time buyers residing in Atlanta; Baltimore; Chicago; Detroit; Memphis, Tenn.; and Philadelphia. The program is limited and may be subject to availability at the time of lock, the company said.
The program is intended to help eligible individuals in the designated markets navigate the higher home prices and mortgage interest rates that may prevent them from taking the first step toward homeownership, Fairway said.
"More and more people can no longer afford housing in their own communities," said Cynthia Vasileiadis, Fairway's executive vice president of fair lending. "Housing prices are near all-time highs and rents are increasing at record rates. Fairway is taking action that will make it easier for residents to buy their first home in the local neighborhoods they already know and love."
The FCA program is designed to reduce the effect of high down payments and closing costs as an obstacle to homeownership. FCA offers qualified first-time homebuyers up to $7,500 toward a newly purchased home. That includes a $7,000 credit toward the buyer's down payment or closing costs, and up to $500 in the form of an appraisal credit (qualification is required) if an appraisal is required for the transaction.
To qualify for the FCA program, applicants must currently live in one of the designated communities and be first-time homebuyers, with no ownership interest in any other properties. The home purchased also must be the homebuyer's primary residence.
The targeted communities are majority minority markets, Fairway said. A recent survey showed that while 72% of white households are homeowners, only 42% of Black households own their homes.
Research from the Center for Responsible Lending and the National Fair Housing Alliance has shown that this disparity is commonly due to lower wealth among minority families, and the national income gap makes it more difficult for Black and minority families to accumulate sufficient savings to purchase a home, Fairway said.
In addition to the $7,500 of financial assistance, the program will offer warranty assistance. If the borrower elects to purchase a home warranty, Fairway will provide a credit for a 1-year home warranty to help provide financial protection that will cover unexpected home repairs and replacements on home systems, including electrical systems, plumbing, water heater, washer, and kitchen appliances due to normal wear and tear.
The FCA program will also provide education on the home buying process and connect applicants with mortgage professionals and other resources in the local community who will serve as buyer advocates to help applicants achieve their homeownership goals.
Fairway Independent Mortgage Corp. is a full-service mortgage lender based in Madison, Wis., and Carrollton, Texas, with more than 7,900 team members and 700 branches nationwide. It funded $72.5 billion in loans in 2021.
