The Yahoo view: Carrington Mortgage Services has many mortgage loan options, including non-QM loans. It also offers insurance, title, and real estate agent services through its partner companies, though it rates low in customer satisfaction and does not offer home equity loans or HELOCs.
Carrington Mortgage Services is a national mortgage lender that offers several types of mortgage loans, including conventional, FHA, VA, USDA, and non-QM loans. The company also offers insurance, title services, a buyer concierge service, and real estate agents through its partner real estate brokerage, Vylla Home.
The company isn’t known for its customer satisfaction, as it ranks well below average in the 2023 J.D. Power Mortgage Servicer Satisfaction Study. It has also been investigated by the Consumer Financial Protection Bureau its treatment of customers during pandemic-era forbearance periods.
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Key benefits
Carrington offers a variety of loan programs, including conventional, FHA, VA, USDA, and non-QM loans.
The company also has title services, insurance, real estate agents, and a home-buyer concierge.
Carrington originates loans in 48 U.S. states (all except Massachusetts and North Dakota) and services them in all 50 states and Puerto Rico. This means Carrington doesn’t sell the mortgages it originates to other companies to manage, and it services loans from other lenders.
Need to know
Carrington doesn’t offer home equity loans or HELOCs.
The company rates below average in customer satisfaction, according to J.D. Power.
According to government data, FHA and conventional loans are Carrington’s most popular products.
Loan types offered
Carrington Mortgage Services for FHA loan borrowers
Carrington Mortgage Services offers two FHA loan options: An FHA fixed-rate loan for purchasing a home and an FHA Streamline Refinance if you’re looking to refinance an existing FHA loan into a new one.
FHA loans account for over 55% of all Carrington’s mortgage origination business, according to 2023 Home Mortgage Disclosure Act data. They are the lender’s most popular mortgage product, even exceeding conventional loans.
Learn more: Best FHA lenders
Carrington Mortgage Service for home equity lending
Carrington Mortgage Services doesn’t offer home equity products (i.e., home equity loans or home equity lines of credit (HELOCs), but it does allow for cash-out refinancing. This is another strategy you can use to turn your home equity into cash.
With a cash-out refi, you’ll take out a new mortgage loan with a larger balance than your existing mortgage, pay off the old loan, and get the difference back in cash. Many homeowners use the funds to pay for home repairs or consolidate credit card debt, though you can technically use them for anything.
Dig deeper: Cash-out refinancing vs. HELOCs
Carrington Mortgage Services interest rates
Carrington is not particularly up-front with its interest rates. You’ll find no advertised or sample rates on its website, and to get a rate quote, you’ll need to fill out an online application with the lender or talk to a loan officer.
Applying for a mortgage with Carrington
To apply for a mortgage with Carrington Mortgage Services, you must fill out an online application through the lender’s website or call (888) 267-0584. The company has some physical locations, including ones in Arizona, California, Colorado, Connecticut, Florida, Texas, and more.
Carrington Mortgage Services offers several mortgage calculators, including a monthly payment calculator, an affordability calculator, a refinancing calculator, and a loan comparison calculator. There’s also an online learning center, which offers a variety of informative guides and articles on everything from home maintenance to improving your credit score.
Learn more: How much house can you afford? Use Yahoo Finance’s free home affordability calculator.
How Carrington Mortgage Services compares to other lenders
Carrington Mortgage Services vs. Fairway Independent Mortgage
Carrington Mortgage Services and Fairway Independent Mortgage offer fairly comparable loan options. Fairway also offers renovation loans and a physician mortgage loan, which can help doctors and other medical workers qualify for a mortgage. However, Carrington offers non-QM loans, whereas Fairway does not. Both companies offer borrowers a number of online resources and tools.
Fairway Independent Mortgage review
Carrington Mortgage Services vs. AmeriHome Mortgage
Carrington Mortgage Services and AmeriHome Mortgage offer similar mortgage options, though Carrington has USDA loans, while AmeriHome doesn’t. Neither company is transparent about its interest rates, though. AmeriHome does offer a variety of incentives that can save borrowers money, including a rate buydown program and refinancing credits.
AmeriHome Mortgage review
Carrington Mortgage Services FAQs
Why is Carrington Mortgage under investigation?
The Consumer Financial Protection Bureau took action against Carrington Mortgage Services for “deceptive acts and practices.” The CFPB claims the lender charged improper fees and misled customers during the COVID-19 pandemic.
What bank owns Carrington Mortgage?
Carrington Holding Company, LLC owns Carrington Mortgage. The organization offers mortgage lending, mortgage servicing, capital management, and real estate, title, and foreclosure services.
Is Carrington Mortgage good for bad credit?
Carrington Mortgage has several loan programs that might work if you have a lower credit score. Its USDA and Flexible Advantage loans only require a 550 credit score, and you may be able to get an FHA loan with a score as low as 500 (with a 10% down payment) or 580 (with a 3.5% down payment).
This article was edited by Laura Grace Tarpley
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