Fairway Cash Guarantee: Outbid Cash Offers in Homebuying
What is the Fairway Cash Guarantee Program?
The Fairway Cash Guarantee is a guarantee to the seller that the sale of their property will close even if the buyer is unable to qualify for financing by the closing date.
If the borrower does not qualify for financing by the closing date, Fairway will:
- Purchase the property in cash according to the appraised value or sale amount, whichever is less, or …
- Pay the seller $10,000 if they do not wish to sell the home to Fairway
What Requirements must be met to use the Cash Guarantee Program?
The Loan must be underwritten through the Fairway Advantage Pre-Approval program, meaning all borrower conditions must cleared – that is – no income/asset/credit conditions remaining
- The property is a single-family home, townhome, or condo (warrantable condos/PUD only)
- The loan is through one of the approved programs (FHA, VA, or Conventional or Jumbo Loans up to $1 million purchase price)
- Sales price limit of $1,000,000
- The property must be appraised. PIWs are eligible
Products NOT supported at this time, include:
- Bond and DPA programs
- USDA
- Manufactured homes
- Renovation loans (FHA 203K, Fannie Homestyle, and Freddie ChoiceRenovation)
- Reverse mortgages
- 2-4 – unit properties
FAQ
Find Out Answers Here
Conventional mortgages hold the title as the most popular type, with lenders originating more than 4.1 million conventional loans in 2022. This contrasts with over 1.3 million nonconventional mortgage originations, including FHA, VA, and USDA mortgages, highlighting the diverse needs of homebuyers.
VA loans often feature the lowest interest rates, benefiting from the support of the Department of Veterans Affairs. However, FHA mortgages also offer competitive rates, particularly for those with less-than-perfect credit histories. Ultimately, securing the best rates depends on various factors, including credit score, debt-to-income ratio, property type (single-family home, condo, or multi-family and down payment size.
FHA mortgages are generally considered the easiest to qualify for, designed to assist those with lower incomes or less-than-ideal FICO scores. If you’re finding it challenging to qualify for a conventional mortgage, an FHA loan could be a viable path to homeownership.
Many first-time homebuyer programs allow buyers who haven’t owned a property in the past three years. This includes divorced spouses who have only jointly owned a home with an ex-spouse.
Choosing the best mortgage lender will depend on the home loan options you’re applying for, how much you want to borrow, the term of the loan, mortgage interest rate, and many other factors. Review our guides for best mortgage lenders, top FHA lenders, and best VA lenders.
Choosing the right mortgage is a significant decision that will impact your finances for years to come. Whether you’re considering a loan backed by the U.S. Department of Veterans Affairs to take advantage of lower mortgage rates without the need for upfront mortgage insurance or exploring a USDA mortgage to purchase a home in a rural area, tools like a mortgage calculator can be invaluable. They help you understand the total loan cost, including the life of your loan and potential higher monthly payments. Remember, making a down payment can reduce your monthly obligations and increase the equity in your home from the start. Ultimately, the best path forward involves careful consideration of your ability to qualify for a mortgage, the type of loan that suits your financial situation, and how long you plan to stay in your home, ensuring you select the mortgage that aligns with your long-term goals.
